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Small Business mathematics

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Last Modified: 2013-11-29
I have a friend who will be starting a new small business from the one that he already has and I wanted to understand a couple of things as far as mathematics.

Since he presently already has a small business lease on a small building, he would like to start an I.T. services opportunity.  What I'm confused about is if he is planning on hiring 3 employees, with the following compensation:

employee #1 :  annual salaray of $80,000
employee #2:  annual salary of $50,000
employee #3:  annual salary of $50,000

Since it's a startup company and he probably does not have many clients, how is he supposed to make salary payments every two weeks and somehow make a profit somewhere.  He is planning on charging between $100 - $125 an hour.
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