For example: on a standard 30-year fixed-rate mortgage, the monthly payment on a $200,000 loan would be $955 for a 4% mortgage versus $1074 for a 5% mortgage. Thatâs a monthly difference of $119. You might think that low rates encourage people to buy homes, but itâs not quite that simple.
If your payroll expenditures fall within 15-30% of gross revenue, your business is in a safe zone. Businesses that live within this range tend to be most successful, at least from a payroll perspective.f your percentage falls above 30%, in the red zone, itâs time to come up with a new strategy immediately. Maintaining a payroll that falls above 30% of your gross revenue is one of the most common reasons for a business to fail. Identify it first and then we can fix it.
After the number of startups dropped to record lows in 2009,they bounced back 12% in 2011. Small businesses accounted for 42% of US private sector payroll in 2012 and 63% of new jobs, according to the Small Business Administration. And as business professors, we three have recently watched entrepreneurship programs sprout like dandelions in American business schools, partly in response to students who no longer aspire to an organization-man (or woman) career.