Manager threshold

Manager threshold — the scale at which a business’s cash flow can absorb a manager’s salary and still beat your hurdles. Below it, the yield includes your unpriced labor and the business is a job with equipment (one water station); above it — usually 2–3+ units in PH practice — the wage is a line item and the remainder is a real return on capital. The course’s rule: locate every semi-passive pitch against its manager threshold before believing any yield it advertises.

First used in: 4.1 · Semi-passive businesses: the honest tier