Many of our businesses fail due to poor management! I am going to say it again, right here in black and white: THE VAST MAJORITY OF BLACK BUSINESSES FAIL DUE TO POOR MANAGEMENT. We don’t have our “sheet” together (aka, “Sugar Honey Iced Tea”). What sheets you might ask? The Balance Sheet. Income statements (Profit & Lost), and Cash Flow statements. These documents are the language of the business world. If you don’t have knowledge of them, read them, heed them, and understand them, then you are doomed to fail in business. Business is just a game, but money is how you keep the score. When you don’t keep good books and records you hurt yourself and your company when it comes time to determine its value. Without these very important documents you don’t know if you are winning or losing. Look, the tax laws are already in place for business owners, you don’t have to worry about paying taxes!
Like I said earlier, your mindset must change from that of an employee, who every year attempts to show the IRS how poor they are in order not to pay taxes. When you own your own business, all that creative stuff is done for you. With the right CPA, the maximum tax you will pay is 20%, the least you will pay is 0%.
Compare this to starting a business from scratch. You will be too busy trying to get new customers and keep the ones you have. You will be inundated with decisions to make. You’ll be too stressed trying to find good employees, you will be stressed with making payroll, paying your vendors and paying the rent for your business as well as your own! Weary from fatigue, you will sign contracts without an attorney in an attempt to save money. This by the way is when most small businesses get themselves into trouble.
Owning your own business is no joke and may not be for everyone, but here’s what I know for sure. If you remain someone’s employee for the rest of your life, your opportunities for growth potential and income potential are very limited. Think about this for a moment. The only reason you need a job is for income. The only reason you need income is to support your lifestyle (where you live, how you live and to pay your bills). The difference in both scenarios is, as long as you continue working for someone else, you are building their business. However, If you work for yourself you’re building your business, something you can pass on for generations to come. You cannot do this with your job.
( Part 3 of 3 )
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