What is a fair salary?

I started two businesses in the past seven months. I employ seven people. These people depend on my businesses to feed their families. In African terms this means that 70 people depend approximately on my businesses. A big responsibility.

Deciding on a salary has been a real challenge. My social side wants to pay as much as possible, but my entrepreneurial side wants to pay as lot less to keep costs down.

Is paying the minimum wage enough? Legally it is, but is paying the minimum wage right?

I pay my staff R200 per day which is about 60% over the minimum wage. I want to pay them more, but the cash flow of the business doesn't allow this atm (or maybe these are just excuses?!?!). I make sure my staff can do one day a week overtime so they can bring their total earnings to just over R5000 a month.

A good friend of mine posted a link to http://living-wage.co.za/ - twitter: @code4sa

These guys build a basic calculator to work out how much we should pay our domestic workers in South Africa.

I followed their guideline by giving my staff R5000 per month in possible earnings. I don't know if this enough.

I find this an interesting topic and something to think about for everyone who employs somebody. I don't have the answers just more questions.

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Square One

July first is less than a week away. Halfway 2015

Hard to believe.

My main New Year's resolution was to look better after myself. It hasn't really worked out the way I intended it to go.

I started anti-depressants just before the turn of the New Year. I needed to take the edge a bit of my border case living. I needed to find some peace and space in my head. I wanted to create a place where I could start dealing with some of the challenges in my life rather than fight the symptoms. 

It worked for a couple of months. Afterwards, my weeks seemed to become very monotonous. I don't function in the grey. I need colour.

I need passion in my life.

In April I slowly weaned myself off the antidepressants. One quarter a week.

It worked. I coped well for a couple of weeks. 

I thought. 

Often the people around us see our depression quicker than we do. While I was on Meds I didn't want to make the changes I need to make to find peace between my emotions, thinking and living. I thought people would not believe me. The problem with not making the necessary changes is that I ended up living with all the same ingredients still in my bowl of life.

The result: I turned in another depressive cupcake.

I haven't been kind to myself. I still believe I need to fight my own fights all the time. I still see antidepressants as something for the weak and needy. I feel ashamed that I am starting meds again.

I am running two startups in a notoriously difficult country to get anything done. I live in the midst of rocky and shaky relationships. I live in a country which isn't home. I have no family near...

I need to give myself a break. Do you need to give yourself a break?

Half way in the year I am back at square one. Back in a place I don't want to be.

Try to enjoy the journey and worry less about the outcome.

What's next? Changes - slowly and non impulsive.

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'Failing'

Last week I wrote a blog about trying to live for a month on the South African minimum wage.

I failed. I lasted for about 24 hours.

I thought this would not be too hard.

I have completed some challenges:

I did abstain from chocolate for a whole year during 2014.

I finished my degree correspondence.

I lost 30kg's in 6 months.

I spend nights sleeping on the streets with the homeless.

Polony...

I did not realize how hard it would be to cut all pleasure out of eating. With living on the minimum wage there is very little space for the little extra's - in food and in life.

Living on the minimum wage is hard. Cheap food sucks. I started my budget living with a typical workers meal: White bread and polony. I nearly vomited. I would rather eat care tyres than ever have to eat cheap polony again. It was horrible!!!

I might have another attempt at this challenge, but I will need to change my living circumstances.

Two lessons for me - maybe for you: 
1. It's okay to fail.

2. Do not eat polony!!! Ever!!!

No risks, no rewards. 

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Living the minimum wage life

South Africa, my country is second on the gap between rich and poor list in the world.

I employ six staff. I pay them salaries. So I looked into minimum salaries as proscribed in the South African law.

They are low, very low.

You might be pleased to know that I pay my staff substantially more than the minimum wage, but I am sure there are many people who just earn the minimum.

I like a challenge...

The Challenge: Live for a month on the minimum wage which is R2600 - $216 in the agricultural sector which is where my main job is.

Some parameters:

- I don't have to pay rent so I will give my rental money - which I worked out by taking the average rent my staff pay - to a charity

- I have a company car which I need for work. I cannot run my company without transport. I will pay my bus fee to and from work to charity

- I will do this experiment all by myself. My kids will not be affected by this. School fees, food and other things for them will be provided as normal.

- I will keep a record of all my expenses so I can track all my spending.

Why

- Can I do it? We all need challenges in life. (Tweet This)

- I want to know how the other side shop, live, think about money...

The result

I don't know.

I don't expect to really understand poverty, but I will hopefully get an insight.

I trust that I will learn some things.

What's in it for you?

Some updates from the other side of the beautiful Port Elizabeth in South Africa. Most likely some stories about being hungry and annoyed at being poor. Maybe some deep, but probably more shallow thoughts on life and it's 'meaning'.

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My South African startup

Six months ago I joined the legion of people who gave up on a salaried job to start following their own business dreams. Today I am taking some time to reflect on the past six months.

It's been hard, it's been fun, it's been stressful... It has been an emotional rollercoaster, but above all it has been rewarding. I am not saying this is the road for everyone, but if you are sitting on the fence my advice is to jump and have a go at doing your own business thing.

Apparently most people only realize what they want from life AND are willing to make the changes necessary when they hit 40. I am glad I have started making those changes earlier. Here are some tips for my fellow ( South African) entrepreneurs.

Save money while you can. In South Africa there is limited funding available for start-ups. I opened a bank account with one of the 4 big banks in SA. They loved me. Well that was till I asked them for money to start my business. They are not willing to loan any money to start-ups in their first year of trading?!?! It doesn't matter if you have a great business plan and years of experience in the sector you are starting. It doesn't even matter if you have signed off take agreements. Banks in South Africa are lame!

I am however sure that when - if - I am successful in the future they will all want my business... Oh well...

So either find friends, family or angel investors to join your cause.

My advice is to go to SEDA. They will help you a little bit with advertising and a business plan if you need one. SEDA, like most government agencies, will take time - patience is needed. So if you are thinking about ever doing your own business forget fancy cars and a big house. Instead start saving money wherever and whenever you can.

So my second tip is: Invest in people! While I was working in my previous job I always did my utmost best to be kind and friendly to clients and suppliers. This has paid off in good working relationships for my start-up, but also so much more.

- One of my suppliers is giving me everything at cost so I can save money. He is also lending me his equipment so I don't have to buy all the machinery right now.

- I helped a friend who needed a space to start his business. In exchange he has decided to partner with me in this business. So one start-up has turned into two.

- The biggest client I got during my previous job decided to rather join me than stay with my previous work.

- A friend introduced me to one of his friends who might be able to help me finance part of my growth.

Thank you for reading this. I hope to write another update in 6 months time celebrating one year in business.

Till then: Enjoy your business adventures!

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