Entrepreneurship Salary Expectations
Because every company and industry are different and have a wide range of average salaries, defining the average salary for an entrepreneur is difficult. To add on to this difficulty, many entrepreneurs pay themselves a base salary, but then reap the benefits of extra profits at the end of the year, so it is hard to measure how much entrepreneurs actually make on average.
Studies have found varying numbers for average salaries for entrepreneurs. But remember, it can differ quite a bit depending on the industry, and these studies are generally based on average salary, which, as mentioned above, does not reflect the actual amount of money made. So, we will not discuss these studies.
Also, keep in mind that a large majority of startups fail, while a small number make it big. This means that the “average salary” statistic for entrepreneurs is really just a balance between the millions of business ventures that make close to nothing and the few that make millions or more. In other words, it is likely that very few entrepreneurs actually make the average.
Instead of trying to find the average salary of an entrepreneur to predict future earnings, do the following to try to get a realistic prospect for your future:
Analyze Your Competition: See how much profit your competition brings in to get an idea of earnings potential in your industry.
Know Your Resources: Take into account your own resources and what you may be capable of doing. Are you able to start off with a bang, or will you have to build your business and earnings slowly over time?
Talk to Experts in the Field: Seek the advice of experts in your industry to get their insight on how much they think you will be able to make.
The three pieces of advice above are just a few examples of things you can do to get a good understanding of your earning potential. Try to take into account as many variables as possible when evaluating your company’s prospective future and how much you think you can make. But whatever you do, do not base any projections on the “average” earnings of entrepreneurs.
About the Author -- Joshua Ferdman
Joshua Ferdman is a Los Angeles-based entrepreneur, specializing in technology, finance, and real estate. He started working in the mortgage business at the age of 16 and hasn't stopped since. Joshua always said that the most important job you can ever have is phone sales. He writes about entrepreneurship, leadership, and succeeding in the professional world.