I wonder how many of us would join a company without knowing our salary and on target earnings. Not many takers eh?

And yet when I ask people especially when they are setting up in business what they want to earn in their first year, this simple question seems to throw them entirely. I get answers like as much as I can or between £50k and 100k or the most honest answer I had not really thought about it.

The same applies even if you are a well established company. What do you want to see in your pocket or on the balance sheet as the net result of all your hard work?

Having confirmed the figure in your mind the next step is to divide it up on a spreadsheet by the 12 months seasonally adjusted which you have available in the year to earn this sum. Everything else revenue, costs number of orders and so on can come from this. Then work the numbers back and see if they add up. If not adjust your income expectations in line with what it will take to earn it.

OK my clients have just about got past this one but you would be amazed how many out there with pretentions to build a successful business, haven’t.

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