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About how much money do business owners make?


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William’s Answer

This would widely vary based on the industry, location, model and maturity of the business. If it's a brand new business, then it's entirely possible to make little to no money from it, as most of those funds would be reinvested to grow the business, buy equipment and be able to handle the expenses that arise. But as the business matures and is well run, then the profits should increase.


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EMMA’s Answer

This is highly dependent on the type of Business you are considering. I recommend if you have a particular business type in mind, to research that more. Once the business type has been narrowed down, you should be able to get a better understanding of the overheads and expenses that are typical for that industry.

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Jay’s Answer

Business owners determine their own amount of income, depending on the effort they put into and the resources available according to their finances. I would do some research on different types of businesses and the location of the business and the amount spent on advertisement marketing to see what their variable and fixed expenses are to determine the final income, but including and other cost of goods.

Jay recommends the following next steps:

do research
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go to business to business to see their annual statement, and do homework to see where do most expenses go to
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prepare a sample business plan for yourself and see how realistic it would work out in the real world.
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Ahmed’s Answer

Some lose money, some have businesses that grow in value, but the owners may remain cash poor, and others become very wealthy. The wealth effect associated to a business ranges by the performance of the businesses, the nature of the deals, and capital efficiency.

Is there specific industry that you are curious about?


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Geoff’s Answer

Hi Yuliana

As others have said it's a wide range from negative number to high positive. But a (very) few business owners I know have is set up so they get a "salary" allow the other money tobe in the business which i think separates them from the business and I think there are a number of advantages to that tax/liability wise.

This Small Business Assoc (SBA) page may help answer:

https://www.sba.gov/sites/default/files/advocacy/All_States.pdf


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