Salary Cap

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In most shred businesses, the highest expense item on your P&L is the salary and bonus line for yourself and your employees. In this video, Tom explains the importance of understanding and defining your salary cap. With obvious connection to professional sports teams, the salary cap in a private business does not work to ensure parity, its goal is to help you as an executive forecast your own salary cap percentage and then to be fully aware of the implications of exceeding it or being well under your defined cap. Tom also provides a mini session on how you need to think about profit in your business.