Chances are that you’re facing one of two scenarios. Busy as you’ve ever been and…
John Borrowman, CPC
Borrowman Baker LLC
Gallatin, TN
If you’ve been in business valuation very long, you know how little you can rely on a back-of-the-envelope answer to “what’s my business worth?”
So, why do you think a back-of-the-envelope answer to “how much am I worth?” is any more useful?
Everyone wants to feel valued. And nothing says “value” like the size of your paycheck. Just to make sure, however, everyone seems to want to compare paychecks with everyone else.
But, how do you go about finding comparables for you? Is your job so cookie-cutter that you know there are a number of others who do pretty much the same thing?
Here are some other variables that impact your compensation:
- Your hourly charge rate
- Your chargeability
- The type of engagements you work on
- The market you’re in
Granted, the difference that any one of these variables makes can be incremental. In the aggregate, however, they can be material and can undermine the very comparison you’re trying to make.
You wouldn’t hand a back-of-the-envelope opinion of value to a client. Why would you rely on one for yourself?
John Borrowman
