Average Salaries of Business Owners
Growth Trends for Related Jobs
Business owners base their annual pay or salaries on several key factors. One consideration is the value that you bring to your business. If you are contributing greatly to your company's profits in a sales capacity, you may warrant a substantially higher salary than your employees. You will also need to factor in the financial state of both your business and the economy. Business owners work in a variety of fields and often earn both a salary and additional compensation.
Business owners earn an average salary of $38,568 to $91,440 per year, according to 2011 Payscale.com data. Additionally, business owners make between $1,030 and $14,293 annually in bonuses, $4,925 and $39,833 in profit sharing and $4,880 to $30,000 in commissions. Hence, a business owner can earn a total income of between $49,403 and $179,196 per year. The Wall Street Journal indicates that small-business owners and executives earn average annual salaries of $233,600. However, the salary figures for company-employed executives probably make the average considerably higher.
Years of Experience
Business owners will likely pay themselves more as their businesses grow and they gain more experience. For example, the average annual salary for business owners with zero to four years of experience is $31,116 to $73,250, according to Payscale.com. Business owners who have five to nine years of experience can expect to earn salaries of $36,437 to $89,076 per year. Once a business owner has 10 to 19 years of experience, she can earn a salary between $37,381 and $95,720 per year. Business owners who have 20 or more years of experience earn annual salaries of $42,885 to $98,942.
Salary by Industry
Business owners' salaries can vary greatly by industry. For example, the highest-paid business owners work in construction and earn annual salaries between $44,405 and $102,231, according to Payscale. Business owners who work in cleaning services, including dry cleaning, earn salaries between $29,479 and $91,563 per year. Landscaping entrepreneurs can expect to earn annual salaries of $38,268 to $81,389.
A general contractor business owner earns between $47,500 and $77,500 per year in salary. Business owners in lawn and garden services earn annual salaries of $36,625 to $63,871. Also, child and day care business owners make annual salaries of $19,592 to $62,400, while hair and beauty salon owners earn salaries of $25,000 to $50,868 per year.
Salary by State
Following are the salary ranges for business owners by state, according to Payscale: California, $41,286 to $121,495; Texas, $44,426 to $82,850; Florida, $29,857 to $97,959; Ohio, $30,000 to $71,139; New York, $36,413 to $100,000; Pennsylvania, $35,819 to $100,464; Georgia, $40,500 to $69,697.