Money which 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.
Before you can make an estimate of any wages you'll pay each month you will need to identify the work that must be done and how many people, if any, will be needed to do it.
You might need staff to:
- go out on 'trade calls', buying and selling
- look after the shop, particularly when you are away
- carry out any repair or restoration work required
- attend auctions
- collect and deliver items
- generally help with a range of jobs
Perhaps you anticipate needing a second pair of hands to help you lift and carry heavy items on a regular basis. Maybe you'll just need someone to help out in your shop at busy times, for example on Saturdays or over the summer period.
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.
If you employ any staff they will probably need certain skills and knowledge, and an interest in - and enthusiasm for - the industry.
Bear the following in mind when taking on staff:
- you could use a combination of full and part-time staff. Part-time work may be attractive to students - perhaps those studying fine art or another relevant subject
- 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 which 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.