Читать книгу Pricing Strategies for Small Business - Andrew Gregson - Страница 17

If $200,000 in a nice, safe bank account generates 15 percent in interest revenue per year, it will give you a a tidy $30,000 a year income before taxes.

If the business has $200,000 of your money invested in it — your cash — and the annual profit before tax is less than $30,000, then you have a poor investment. It would be smarter to have that cash in a nice, safe bank account.

In comparing these two situations, of course, the owner would be drawing a wage and some benefits out of the company cash flow. We can safely assume here that with $200,000 stuffed into a bank account, the owner would still be working. We are only talking about the return on cash invested.