I currently own a very successful small business (30 years) and have seven employees. My manager and assistant manager are both paid very well. My five other employees are usually students from the local university and stay with me for four to six years. I start all my part time employees out at minimum wage and I move them up the pay scale according to their performance. I currently have a file full of quality applications.
There is a very simple rule that I follow. I maintain a constant profit margin and if there is a raise in the minimum wage or any other increase in the cost of good or services, I pass them directly to my customers.