Would it be profitable to start a business
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Mary currently works for a small company that pays her a salary of $30,000 per year as a computer technician. She is considering opening her own business as a computer technician/consultant. She estimates her annual revenues at $95,000 and total annual operating expenses at $75,000. Her accountant acquaintance advises her to start the business because it will be a profitable endeavor. Do you agree? Why or why not?
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Hi there,
On the surface, it appears that it would not be a wise decision as Mary is earning $30,000 as a computer tech, and would only be earning $20,000 if she worked for herself. Her accountant acquaintance did say that it would be a profitable endeavor, which at $20,000 in the black is profitable. Thus, there is no disputing that fact. One must ask, however, if the accountant meant to say that running ...
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