STOP Overpaying Staff! The Salary Formula Every Entrepreneur Needs 🚀

Ever panicked about hiring the wrong person at the wrong time—or stressed you’re haemorrhaging cash on your payroll without even noticing? I’ve been there! Today, I’m slashing through the confusion with a simple salary calculation that saved my business—and could transform yours too.👇

THE RUNPRENEUR CHALLENGE: RUNNING FOR CHILDREN’S LIVES

If you’re new here, a quick intro: I’m Kevin, and I’m running the ultimate ultra marathon—40,075km, or a lap of the world—barefoot, every single day, on my mission to raise £1,000,000 for children’s causes. We’re going beyond Day 4,292 and the journey’s as much about mindset and entrepreneurship as it is about physical challenge. Every view, share, and comment gets us closer to saving more children’s lives.

Struggling With Staff Costs? Here’s How To Never Overspend Again

Picture this: Business is booming… or, maybe, you’re fighting to stay afloat. Either way, you wonder: “Can I actually afford another staff member? Or am I paying too much right now?” Don’t guess—know. There’s a formula I discovered (big shoutout to Greg Crabtree’s "Simple Numbers, Straight Talk, Big Profits") that will revolutionise how you see your team costs.

I always thought nailing my staff budget was some dark art, but with this formula, it’s clear, actionable, and repeatable—no spreadsheets from hell required!

THE SIMPLE SALARY CAP FORMULA

Here’s my go-to calculation, straight from my diary as an entrepreneur and runpreneur:

1. Take your annual revenue (more data = better, but use monthly if that’s all you have).

2. Subtract ALL non-staff costs (basically, all costs except staff wages).

3. Subtract your target pre-tax profit (aim for a minimum of 10%—5% means your business is on life support, 15% and you’re smashing it!).

That final number? That’s your maximum staff salary budget.

Example:

• Annual revenue: £500,000

• Non-staff costs: £200,000

• Target pre-tax profit (10%): £50,000

£500,000 – £200,000 – £50,000 = £250,000 (staff salary cap)

If you’re paying more than this? Time to trim or ramp up your income. Less? You’ve got room to hire and grow.

WHEN TO HIRE? WHEN TO WAIT?

Here’s what I do:

• If my salary cap has buffer, I seriously consider recruiting—only if the business case stacks up.

• If I’m at my limit, I hold off. I only expand my team when revenue growth allows, so I protect both my people and my profits.

This isn’t just a formula—it's your decision-making safety net. It takes the stress out of hiring, firing, and scaling your team.

WHY IT MATTERS

Too many entrepreneurs, myself included in the early days, fly blind on staffing. Over-hiring kills cashflow, while under-investment can strangle growth. This formula gives you control, confidence, and clarity—so you can run your business as smartly as I run my ultramarathons!

YOUR MOVE: DON’T GUESS—CALCULATE!

💬 Have you tried this salary cap formula? Drop a comment below with your numbers or questions—let’s help each other win!

🙌 And remember: every share, like and subscribe takes us closer to the big £1M for children’s charities. Join me on this mission, whether you’re an entrepreneur, a runner, or someone who just cares.

Together, let’s run further, build better businesses, and change lives. Stay positive, stay happy—and see you on tomorrow’s run!

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