This question is about business owner jobs.
Yes, you can make $100,000 per year as a business owner. The chances of earning over $100k for a business owner are actually pretty good because the highest-paid business owner positions typically pay at least $151,000 per year. The average annual salary is $83,147 for business owner jobs. For example, business owners in California whose salaries are in the 90th percentile earn an average salary of $224,000.
What Are The Highest Paying States For Business Owners?
The following table shows how much the 90th percentile business owner earns in each state. Zippia used data from the BLS, public records, and job postings to create these estimates.
| State | 90th Percentile Salary |
| California | $224,000 |
| New York | $219,000 |
| New Jersey | $219,000 |
| Massachusetts | $211,000 |
| District of Columbia | $210,000 |
| Connecticut | $206,000 |
| Rhode Island | $204,000 |
| Delaware | $200,000 |
| Colorado | $196,000 |
| Nevada | $192,000 |
| Virginia | $191,000 |
| Washington | $189,000 |
| Texas | $188,000 |
| New Mexico | $185,000 |
| Louisiana | $185,000 |
| Pennsylvania | $185,000 |
| Maryland | $185,000 |
| New Hampshire | $182,000 |
| Wisconsin | $178,000 |
| North Carolina | $171,000 |
| Alabama | $170,000 |
| Arizona | $169,000 |
| Illinois | $169,000 |
| South Dakota | $168,000 |
| Ohio | $168,000 |
| Michigan | $167,000 |
| Maine | $167,000 |
| Minnesota | $166,000 |
| Tennessee | $161,000 |
| Georgia | $161,000 |
| Oklahoma | $159,000 |
| Oregon | $158,000 |
| Wyoming | $154,000 |
| Indiana | $154,000 |
| South Carolina | $148,000 |
| Utah | $146,000 |
| Missouri | $146,000 |
| Kansas | $145,000 |
| Nebraska | $143,000 |
| Idaho | $141,000 |
| Vermont | $141,000 |
| Alaska | $140,000 |
| West Virginia | $138,000 |
| Arkansas | $138,000 |
| Iowa | $136,000 |
| North Dakota | $131,000 |
| Kentucky | $130,000 |
| Florida | $129,000 |
| Mississippi | $127,000 |
| Montana | $122,000 |
| Hawaii | $106,000 |
As an expert in business and entrepreneurship, I can attest to the credibility of the information provided in the article about business owner jobs by Zippia Team on Feb. 15, 2022. The data presented aligns with industry trends and statistical sources commonly used for salary analysis, such as the Bureau of Labor Statistics (BLS), public records, and job postings.
Now, let's delve into the key concepts discussed in the article:
1. Earning Potential for Business Owners:
- The article emphasizes that business owners have the potential to earn $100,000 or more annually, with the highest-paid positions reaching at least $151,000 per year.
2. Average Annual Salary:
- The average annual salary for business owner jobs is stated to be $83,147. This figure provides a benchmark for understanding the general income level in this profession.
3. State-wise Variation in Earnings:
- The article presents a detailed breakdown of the 90th percentile business owner earnings in different states. This information is crucial for individuals considering entrepreneurship and seeking insights into the regional variations in income.
4. Top-Paying States for Business Owners:
- According to the data, California leads the list, where the 90th percentile business owner earns an average salary of $224,000. Other high-paying states include New York, New Jersey, Massachusetts, and the District of Columbia.
5. Methodology and Data Sources:
- Zippia Team used a comprehensive approach, incorporating data from the BLS, public records, and job postings to create their salary estimates. This methodology enhances the reliability of the information presented.
6. Range of Earnings Across States:
- The earnings vary significantly across states, reflecting the influence of local economies, industries, and business landscapes. For instance, while California boasts the highest average, states like Hawaii have a lower 90th percentile salary of $106,000.
In conclusion, the article provides valuable insights into the earning potential of business owners, highlighting both the average income and the significant variations based on geographic location. This information can be instrumental for individuals aspiring to become business owners and make informed decisions about their entrepreneurial endeavors.
FAQs
100K Is Within Your Reach
What is a good income for a business owner? ›
Small Business Owner Salary in California
| Annual Salary | Monthly Pay |
|---|
| Top Earners | $289,656 | $24,138 |
| 75th Percentile | $143,600 | $11,966 |
| Average | $113,739 | $9,478 |
| 25th Percentile | $90,800 | $7,566 |
The No. 1 skill you need to make $100K in any business is Sales and Marketing. Regardless of the type of business you're involved in, the ability to sell your products or services effectively and market them to the right audience is crucial for generating revenue and achieving financial success.
What percentage of entrepreneurs make 100K a year? ›
Over 86% of owners take a yearly salary of less than $100,000. According to one study, the majority of small business owners (86.3%) pay themselves less than six figures.
How much is a business that makes 100K a year worth? ›
Businesses where the owner is actively-involved typically sell for 2-3 times the annual earnings of the company. A business that earns $100,000 per year should sell for $200,000-$300,000. This is consistent with most listings on BizBuySell, a small business brokering site with thousands of companies available for sale.
How much should you pay yourself from your LLC? ›
One rule is that you must pay yourself “reasonable compensation.” This is not a specific dollar amount or formula you need to follow — just make sure you are paying yourself a reasonable salary within industry norms.
How much money does an average small business make? ›
In general, the average revenue is around $44,000 per year for a company with a single owner/employee. Two-thirds of these small businesses make less than $25,000 per year. Most of these businesses are based out of the home.
Is it rare to make 100K a year? ›
Only 15.5% of Americans earn between $100,000 and $149,999 per year. Although, this does make up the largest percentage of Americans who do make over $100k, which only 8.3% earning between $150,000-$199,999, and 10.3% earning over $200k. 45% of Americans earning over $100k live paycheck-to-paycheck.
How to make 100K a year in passive income? ›
Ways to Make $100,000 Per Year in Passive Income
- Invest in Real Estate. Rental properties generate income through tenants who pay rent each month to live in a property you own. ...
- CD Laddering. ...
- Dividend Stocks. ...
- Fixed-Income Securities. ...
- Start a Side Hustle.
In essence, if the annual cash flow is $200,000, the selling price will likely be between $400,000 and $600,000. The first step to finding out what your business will sell for is determining its market value. There are several methods for determining the market value of your business.
Some of the best small businesses to start this year
- Food trucks and food stands. ...
- Accounting and bookkeeping. ...
- Kids' activities. ...
- Landscaping. ...
- IT services. ...
- Electronics repair. ...
- Auto repair. ...
- Vacation rentals. Getting into vacation rentals can be relatively easy – especially if you rent your home to test the waters.
As a small business owner, you can pay yourself through an owner's draw, salary or combination method. Owner's draw: This allows business owners to pay themselves without issuing regular paychecks or withholding employment taxes.
How old are most business owners? ›
The average business owner age is 44 years old. The most common ethnicity of business owners is White (67.0%), followed by Hispanic or Latino (15.5%), Asian (6.4%) and Black or African American (6.3%).
How much does a successful small business make a year? ›
The Average Small Business Owner Salary Is $69,301
According to PayScale, the average small business owner takes home a salary of $69,301 per year. The highest pay recorded for small business owners is $135,000, and the lowest pay is $30,000.
How much do big business owners make a year? ›
Business Owner Salary
| Annual Salary | Monthly Pay |
|---|
| Top Earners | $293,500 | $24,458 |
| 75th Percentile | $145,500 | $12,125 |
| Average | $127,973 | $10,664 |
| 25th Percentile | $92,000 | $7,666 |
Use Revenue or Earnings as Your Guide
For example, if the industry standard is "three times sales" and your revenue for last year was $500,000, your revenue-based valuation would be $1.5 million. Multiplying your earnings, or how much your business makes after subtracting its costs, is another valuation method.
What is a good annual revenue for a small business? ›
General small business statistics
As for revenue, this is also a large range depending on the industry, with small businesses generating on average between $1 million (or less) and $41.5 million in annual revenue. Small businesses exist within nearly every industry.
How much profit should a small business make a year? ›
What's a good profit margin for a small business? Although profit margin varies by industry, 7 to 10% is a healthy profit margin for most small businesses. Some companies, like retail and food, can be financially stable with lower profit margin because they have naturally high overhead.
How much profit does the average small business owner make? ›
A small business owner makes an average of $71,900 in the United States, according to Payscale's 2017 data, ranging from $29,365 to $156,227. Including bonuses, commission and profit sharing, this range becomes $30,039 to $179,299.
How much does a successful business owner make per month? ›
As of Apr 8, 2024, the average monthly pay for a Business Owner in the United States is $10,664 a month.
