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Marge is unsure about how much she currently earns after payroll deductions, but knows that she earns an annual salary of $80,000. She is not
Marge is unsure about how much she currently earns after payroll deductions, but knows that she earns an annual salary of $80,000. She is not overly concerned with earning the same as she makes now, but her new business should end up yielding salary within the same ballpark in ten years. She expects her executive assistant salary to increase at a 5% annual rate, with the market interest rates remaining steady at 4%. She is aware that she would need to cover both the employee and employer portions of the payroll remittances as a sole proprietor. The sole proprietorship will be called Marge's Mirrors. Marge plans to continue selling mirrors out of her garage, but also develop an online presence. She will build a website with a cost of $2,000 initially and then $500 annually to market to a wider customer base. Additionally, she will continue to distribute flyers to the local population, which has an annual cost of $250 a month. With these measures, Marge expects her local sales to quintuple, from an estimated $3,000 in her first year to $15,000 next year. In her second year, she is expecting in-person sales volume to grow 30%. In her third year, she is expecting another 20% jump. In year four, she is planning to increase prices to 2.25 times cost and keep them flat from there on) and sustain a sales volume growth rate of 3% per year infinitely. Marge is unsure about how much she currently earns after payroll deductions, but knows that she earns an annual salary of $80,000. She is not overly concerned with earning the same as she makes now, but her new business should end up yielding salary within the same ballpark in ten years. She expects her executive assistant salary to increase at a 5% annual rate, with the market interest rates remaining steady at 4%. She is aware that she would need to cover both the employee and employer portions of the payroll remittances as a sole proprietor. The sole proprietorship will be called Marge's Mirrors. Marge plans to continue selling mirrors out of her garage, but also develop an online presence. She will build a website with a cost of $2,000 initially and then $500 annually to market to a wider customer base. Additionally, she will continue to distribute flyers to the local population, which has an annual cost of $250 a month. With these measures, Marge expects her local sales to quintuple, from an estimated $3,000 in her first year to $15,000 next year. In her second year, she is expecting in-person sales volume to grow 30%. In her third year, she is expecting another 20% jump. In year four, she is planning to increase prices to 2.25 times cost and keep them flat from there on) and sustain a sales volume growth rate of 3% per year infinitely
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