All the political people are arguing over taxes, and my inner geek smiles.
(By the way, if YOU want to argue about the tax issues, here’s a good explainer article to start with before you make big declarations about the tax issues involved.)
Because I’m not really interested in arguing over these things, to be honest — at least in this space.
Our Skagit County clients pay us to do for them something akin to what Trump has someone in his corner to do.
And while all the arguments about corruption, loopholes, and whatnot might be good fodder for the chaos-driven media, you and I both should be clear-eyed about the fact that:
A) we haven’t actually seen the returns
B) there is a difference between income and wealth.
Tax returns aren’t about wealth — they’re about “income”, and how that is defined.
Business owners and real estate investors have access to powerful tax advantages that wage earners do not … and wage-earners probably wouldn’t understand them.
This is true for smart Skagit County business owners the world over.
This is why we do what we do … to increase those advantages on YOUR behalf, even if you aren’t a global real estate magnate / reality tv star / politician.
But you HAVE a business… and we’ve got you covered on the taxation front.
(If for some strange reason we DON’T, use this: 360-424-1040 )
Or perhaps you’re considering STARTING a business?
So let’s talk about making that business actually work on your behalf today … the below mistakes are ones that Trump seems not to have made, and I’d like to see you avoid them too.
5 Business Mistakes That Can Be Fatal by Steve Padgett
“Life isn’t about finding yourself. Life is about creating yourself.” – George Bernard Shaw
Based on what I’ve seen in my work with local businesses, here are the basic business mistakes people make when starting and operating a small business. These are by no means an exhaustive list of business mistakes, merely the most common — and eminently avoidable…
- Not having a CLEAR business plan. A good business plan will guide you through the first few months and years of your business. It should contain metrics that help you monitor costs as well as progress.
It doesn’t have to be fancy, or even something that would hold up under an investor’s scrutiny (though, certainly, if you’re going down that road, go the extra mile and make sure it’s good). But it does have to give you a roadmap to the goals you should be hitting by certain points — 3 months, 6 months, 12 months.
- Doing everything yourself. Even in a one-person operation, you’ll have your hands full. If you’re not in a position to hire employees, at least be ready to outsource the tasks that aren’t integral to your daily operations.
In this way, of course, you free yourself for the highest-level activities, such as marketing and sales.
- Targeting the wrong market. Nothing takes the place of solid market research before you launch your Mount Vernon business. Find out who needs your product or service, where they are, what they expect to pay for it, and whether there are enough customers for you to survive.
But the BEST way to do this, is not to use statistics or data … it’s to start small, and sell something to your targeted market first which is very similar to what you are wanting to ultimately provide. Survey results are one thing, but having people “vote” with their pocketbook is a much better predictor of future results.
- Failure to prioritize sales. Your great idea for a product is only that–an idea. To actually grow, you’ve got to devote sufficient time to sales. Instead of trying to perfect your product, work on getting it out to customers. Let your customers help you perfect things, especially after you start selling to them.
- Underestimating your resources. No matter how detailed your business plan is, chances are your startup will require more time and money than you anticipate before it gets off the ground. Be patient, and plan for the long haul.
In fact, here’s a good rule of thumb:
1) Take your projected costs: double them.
2) Take your projected revenue: cut it in half.
If your proposition is still profitable, give it a shot.
And though we are actually still very busy this time of year, we’re right here for you, if you need us: 360-424-1040
Padgett & Padgett, PLLC CPA
Feel free to forward this article to a business associate or client you know who could benefit from our assistance. While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for families and business owners.