The 18% Rule
Wondering how much you should be spending on contractors, employees, freelancers, personal assistants and/or team members?
If you’re a new or recent start-up business knowing when you can start employing someone could be a make or break situation.
So getting it right, first time is super important!
Regardless of your company structure, we recommend 18-20% of your sales revenue excluding VAT and sales tax can be dedicated to team members.
We’ve found this to be the sweet spot for the thousands of businesses we work with; it ensures your business stays financially healthy without stifling the growth of your business.
This is my rule of thumb, that really works! #MoneyMaker
Thanks ever so much for taking the time to read my post I truly hope you’ve found it useful and insightful. If you have any questions feel free to contact us!
I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!