I Can’t Figure Out How Much to Spend on Payroll

The EntreLeadership Podcast

Lampo Licensing, LLC.

Entrepreneurship, Business, Management

4.7 • 4.1K Ratings

🗓️ 28 April 2025

⏱️ 34 minutes

🔗️ Recording | iTunes | RSS

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Summary

Today we’ll hear about: A business owner wondering how much of her revenue she should allocate to payroll The key differences between a controller and a CFO Why Dave Ramsey hates job descriptions and what he thinks is a better option How to give money to charity with business profits Next Steps: 📞 Have a question for the show? Call 844-944-1070 or send us a message: https://ter.li/ask-us 📚 Learn about the EntreLeadership System: https://ter.li/system-p 💻 Get EntreLeadership Elite for your business: https://ter.li/elite-p ✉️ Sign up to receive tactical tools, advice and resources in your inbox every week: https://ter.li/enl 🏢 Attend EntreLeadership Summit: https://ter.li/summit 🎤 Attend EntreLeadership Master Series: https://ter.li/masterseries 📖 Order Dave’s new book, Build a Business You Love: https://ter.li/b4kru2 📃Build your KRA for free: https://ter.li/ks4jnp Connect With Our Sponsors: 💼 Go to Belay Solutions or text ENTRE to 55123 for their free resource! 💻 Visit NetSuite today to learn more. 🧾 Visit Payority for a free consultation! 📈 Get started with Sales Gravy’s free resource, The Small Business Owner’s Guide to Hiring Salespeople. 📝 Use code ENTRE15 to get 15% off your first year of Trainual. Listen to More From Ramsey Network: 🪑 Front Row Seat with Ken Coleman 🎙️ The Ramsey Show 💸 The Ramsey Show Highlights 🧠 The Dr. John Delony Show 🍸 Smart Money Happy Hour 💡 The Rachel Cruze Show 💰 George Kamel Ramsey Solutions Privacy Policy

Transcript

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0:00.0	From the headquarters of Ramsey Solutions, this is the Entree Leadership podcast, where I take calls from
0:15.1	leaders like you about what it takes to win at any stage of business and leadership.
0:20.4	I'm Dave Ramsey, your host with over 30 years of experience leading in the trenches right alongside you.
0:26.4	If you want to submit a question, go to entrell leadership.com slash ask,
0:30.3	or you can leave a voicemail, and either way, we'll get you set up to be a caller here.
0:34.6	Voicemail numbers 844-944-1070. That's 844-944-1070. Kaley is in Portland, Oregon. Hi,
0:45.0	Kaylee. How are you? Hi, I'm good. Thank you so much for taking my call. Sure. What's up?
0:50.2	So I own a small, low-volume dog grooming salon. I have three full-time employees and one part-time,
0:57.7	and last year we did $422,000 in sales. My question is, is there a certain percentage, just a general
1:06.5	rule that I should be aiming for for my payroll to be at given that I'm fully service-based
1:12.9	with no retail, any other income sources.
1:16.3	No, that would change from industry to industry.
1:19.6	What you should be looking for is a return on investment.
1:23.9	Obviously, in other words, you've got to make more per groomer that you hire than that groomer costs you.
1:32.2	So if you put someone out to do grooming, did you say it's mobile?
1:36.6	No, it's a salon.
1:37.6	It's in the salon.
1:38.3	Okay.
1:38.6	So if you put someone in a bay, so to speak, and you set that bay up with equipment,
1:43.9	and you put them in there and you
1:44.9	pay them. The cost of that equipment plus the cost of that payroll, then what's the grooming
1:50.3	income versus my cost, right? As if it is a little individual standalone business.
	...

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