Factors Affecting Small Business Owner Income
According to PayScale, the average small business owner income is $60,648 per year. Factors impact your earnings. By understanding factors that affect salary, owners can maximize profits.
- Increase revenue by expanding customer base, offering services/products, and streamlining processes to lower costs.
- Increase efficiency and reduce costs through automation or outsourcing.
- Invest in marketing and advertising campaigns to increase brand awareness and attract more customers.
Profit Margin and Net Worth
A healthy profit margin for a small business tends to range from 7% to 10%. The median net worth of self-employed families was $380,000 in 2019, over four times larger than the net worth of working families.
Small Business Owner Statistics
The average small business owner’s salary in the U.S. is $99,979. The typical range is $83,178 to $126,515. On the other hand, the average wage for Americans overall is $63,795. Earnings depend on various factors like industry. Small businesses account for 99.9% of businesses in the U.S. and employ 61.7 million Americans.
Terminology and Revenue Potential
Over the years, thousands of new small business owners have questions about terminology and revenue potential. First, understand the difference between revenue, profit and income.