inluminent

I spent some time with my uncle Raymond last week. Raymond owns his own business - Framecrafters, and it’s quite a successful little venture. They make custom frames and framed art for retailers to sell, and do some direct to client work as well. They’re good at it, and do decently well.

I was telling him that someday I want to own my own business, because, in my opinion, that’s really the only way people become independently wealthy these days… and that owning my own business would help me get there, or at least enjoy working a whole lot more (that’s the romantic in my thinking).

Raymond told me to think about the idea of starting my own business, and to remember that most small business owners pay themselves 10 percent of gross revenues as a salary. So, if that’s true, and your business grosses $400,000 a year, you’ll earn $40,000. $500,000 = $50,000. $1,000,000 in gross profits = $100,000 in salary. That’s not true in all businesses, but it’s a great little goal to keep in mind, when I do get around to starting my own business.