Thursday, June 21, 2018

What you can do to make your small business survive

I'm a sole proprietor of my writing business. The business covers my blogging, writing and editing work, and also my few press release assignments. Even though my business is already a few years old, I still don't know everything about making it succeed. I honestly feel that one of the problems is the government. There are so many requirements to submit and so many steps to take to make it legal and keep it that way. There are so many tax forms and taxes to pay. Seriously, how can a business even start or survive when the government systems are hell bent on making it difficult every step of the way?

And mine is just a tiny business! I'm not a food business, I don't make products nor do I sell anything. Those kinds of businesses need even more permits. I do understand that these systems are in place to protect the consumer. I just wish that the government also understands that in order for a country and its citizens to become richer (and thus pay more taxes to fund the politicians' coffers nation's many projects), it has to make everything easier for small business owners, startups, professionals and freelancers. Singapore, for example, makes opening a business so easy because you do everything online. You have a legitimate business set up in one day! How long did it take me to register Frances Jules Amper Sales Writing Services? Two weeks! 

Anyway, here's a guest post today. A few tips on how to make your small business survive. I'll add my notes at the end of each tip!

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Small businesses are popular, but it’s rare that they end in success. Whether you’re starting a home business, taking over a family business, or making a business out of your blog, it will be a struggle.

The fact of the matter is that the world is a very treacherous place for small business owners and most will fail to make it. This makes you think; what can you do to ensure your startup survives? While success isn’t guaranteed, there are certain things you can do to help your company have a better chance of succeeding.

Be Active In Your Local Government
A lot of small business owners fail to see how important it is to be active with local government politics. State legislation can make a huge difference in how successful your business will be. I have two suggestions here. 

Firstly, I encourage everyone to vote in local and state elections. As you can see on www.votereagan.com, there are Secretary of State elections around the corner, and these play a huge role in small business success. If you vote for someone with policies and legislation that benefit small business owners, then it will naturally put you in a better position to succeed. 

Secondly, I suggest you don’t shy away from writing to government officials. This can often be the first step in getting certain laws changed or relaxed to help your business thrive. At the very least, this communication can help you understand laws better and what’s expected of your business.

This is a good tip, mamas. Let's vote for people who are making legislation that helps families (like Senator Risa Hontiveros who authored the Expanded Maternity Leave Act) and lowers income taxes (okay, while Senator Edgardo Angara's lower income tax bill was fantastic, it became part of the awful TRAIN Law that raised taxes on everything else!).

Understand The Ins And Outs Of Tax
Tax is a small word, but it carries massive worries for small businesses. A large proportion of small companies fail because of tax issues. You either don’t pay enough, or you pay too much. Either way, you end up in a situation where money is a real issue. 

Tax can be a huge business expense, so it pays when you learn how to reduce your tax bill as much as possible. Get to grips with the ins and outs of filing your tax return, and your company can save thousands of dollars every year. This could make all the difference in the race for survival. 

Another good tip! If you're on top of your bookkeeping and if you know the best deduction method for your business and your correct tax code, you can pay less to even no income taxes. I'm lucky I have my amazing tax consultants over at Taxumo who helped me figure this all out! Sign up at Taxumo now for all your tax needs!

React When Things Clearly Aren’t Working
There are loads of common reasons behind the decline in small business success rates. In fact, there a whole list on www.moyak.com that goes through them all. I want to focus on one point that stood out for me, this idea of not reacting quick enough. When things start going badly for you, you need to react. This might mean changing your business model completely, to adapt to the way the market has changed. When things clearly aren’t working, this is where you must be proactive rather than trying to ride out the storm. 

Yes. I know many businesses that sell only online. Many Pinoys want to touch and feel a product so these online business get lots of inquiries about a physical store. The owners saw this as a sign to join bazaars and expos. This really helped reach a different market (the not-online one!) and also helped market their brand to new customers. 

Everything here applies to small businesses of different types and varieties. Even if your small business is a blog, everything is still applicable. You’ll still be burdened or relieved by government laws, you still pay tax, and you can still go through a period where suddenly your blog doesn’t make money anymore. So, what can you do to make your small business survive? Following the pieces of advice above is a good start.

*Image from Flickr. This post contains affiliate links.

1 comment:

  1. I wished I could have read this last year when I was struggling with my two small businesses. I had to close my bakery and a food shop because of so many problems. One lesson I learned was to make sure that you know something about the business. I love eating and I love baked goods but I don't know anything about baking and cooking :-( so I had to rely on other people for the sustainability of the business. It was not a good decision because at some point, I became concern about missing inventory, unaccounted sales, etc. I had to close the businesses and really rethink about what business I can manage. It was a very costly decision and one I dont intend to do again

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