Money that you take from the business to cover your own personal living expenses is known as 'Drawings'. This should not be included here, but will be dealt with elsewhere in the cash flow.
Whether or not you plan to employ any staff will depend on the scale of your proposed venture. But if you do plan to have employees you will need to identify the work that must be done and how many people will be needed to do it. Then you can make an estimate of the wages bill every month.
You might need staff to:
- work in your retail outlet, perhaps while you're busy in the workshop
- attend fairs and exhibitions
- work alongside you at every stage of the picture framing process
- work on certain aspects of picture framing, such as making basic standard sized frames
- put together displays if you have a retail outlet
- maintain your website and deal with online enquiries and orders if you offer these facilities
- package and despatch mail order and online sales
- answer the telephone, keep the business records and deal with other general administrative tasks
- provide any specialist services you decide to offer such as cleaning and restoration
- keep the workshop neat and tidy
The wages you pay your staff will depend to some extent on what is the going rate in your area. The Annual Survey of Hours and Earnings (ASHE), which is carried out by the government, gives average weekly wages (national and regional) for a wide range of different types of job. The Survey is available online on the Office for National Statistics (ONS) website.
- you could use a combination of full and part-time staff
- you could consider taking on and training someone, perhaps through an apprenticeship scheme
- the National Minimum Wage Act sets a minimum amount that you must pay your staff. Workers aged 25 and over receive a Living Wage premium on top of the standard National Minimum Wage
- there is employment legislation that you should be aware of
- you will have to pay employer's National Insurance Contributions (NICs) and you will have to operate PAYE in 'real time'. You may have to make employers' minimum contributions to an auto-enrolment pension scheme too
In the cash flow, just put the amounts you will actually pay to staff after you have deducted NICs and PAYE - you will show these separately. Also include here the cost of staff pensions.