- YEC Member Spotlight: Thomas Kjeldgaard, CEO and Founder, SplashPost Young Entrepreneur Council
Question
How hard is it to run a business? Any guesses?
State Tax. City Tax. Government Tax. License Fee. Insurance Fee. Worker's Compensation. Bonding Fee. Tax for the location of the business. Cost of Supplies. Cost of Labor. Vehicles for the business. Separate business car Insurance for each worker.
Now, you spend all that. Take that huge risk. And so your business is up and running, with significant cost. It's a service business. How much do you think people want you to make?
I pay my workers $10/Hr. It costs us $15 per customer, to get them. Add all the above. How much do you think is okay for your business to make? My business was making $8 per hour. Pay tax on that too. And the customers want cheaper!
Well, a couple months into it I realized that no business is better than bad business. I can just go work in a freaking grocery store for that money.
And so, from now on I decided I'm going to make a profit or I'm going out of business. And I'm fuming because all the above does not matter to people...
Anyways, I guess that's what a business is. You work hard, provide a quality service, and you aim for a profit. It is a risk that you take, and if it doesn't work you go out of business. It's that simple.
You don't work for $8 an hour, which is essentially free. It's not a non-profit organization.
Best Answer
How hard is it to run a business? Any guesses?
---i teach this in college and have for 40+ yrs. YOU have some accurate and some inaccurate
points, and are missing some huge points. Let's tippy toe through part of this.
State Tax. City Tax. Government Tax. License Fee. Insurance Fee. Worker's Compensation. Bonding Fee. Tax for the location of the business. Cost of Supplies. Cost of Labor. Vehicles for the business. Separate business car Insurance for each worker.
--Depending on what state you are in, and on what you sell, some of those taxes are not applicable
the sales taxes do not come out of your net. Gov tax; which one? If you have set up a Research
and Development operation, you have no Gov tax for 3-6 yrs AFTER you reach profitability.
-------insurance FEE? or just insurance. EVERYONE on earth should have insurance.
HIRE contractors only for x period of time, then no workers comp.
Bonding insurance, not fee.
--tax for the location of the business? no such animal.
--fewer than 5% of all businesses provide their workers with cars.
----
Now, you spend all that. Take that huge risk.
That is not a risk at all depending on what your market research and business plan disclosed.
And so your business is up and running, with significant cost. It's a service business. How much do you think people want you to make?
---you have not had any costs that are not deductible prior to starting up.
HOW much do people want you to make? To net or to gross? To pocket, they could care less.
THEY buy goods and services based on what will both solve their problem[s] and be in their
budget.
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I pay my workers $10/Hr.
---which workers? YOU won't get an officer for that. Minimummly skilled will cost you a bit less.
---
It costs us $15 per customer, to get them.
--and how did you determine this? 1/4 hour presentation?
---
Add all the above. How much do you think is okay for your business to make? My business was making $8 per hour. Pay tax on that too. And the customers want cheaper! If the customer demands
cheaper, and you can't prove your solution's value, he will get it. IF you can prove the value, he will
be happy to pay your fee. I can prove that easily!
---how much is it ok to make? Irrelevant.
Well, a couple months into it I realized that no business is better than bad business. I can just go work in a freaking grocery store for that money.
--there is no such thing as bad business. UNLESS you mean all your customers got mad
at you; if they did, why did they?
---
And so, from now on I decided I'm going to make a profit or I'm going out of business. And I'm fuming because all the above does not matter to people...
---NOW I am going to make a profit? HUH? Sounds like an angry response to running a business.
ODD, silly, wasteful. Customers will GLADLY PAY to have a problem solved. Again, I can
prove that.
--
---
Anyways, I guess that's what a business is. You work hard, provide a quality service, and you aim for a profit. It is a risk that you take, and if it doesn't work you go out of business. It's that simple.
---WRONG; you don't aim for a profit, you KNOW you will have a profit.
----
You don't work for $8 an hour, which is essentially free.
---free, huh? 2/3rds of the people on this planet take home $8 a day.
It's not a non-profit organization.
YOUR attitude is getting in your way. I can help
Other Answers
what type of business do you have?
by Lara - 11 months agoit suck but a good option for you business is to layoff unnecessary employees, you would save a lot of money on salaries, taxes and benefits.
by Julio C - 11 months agoEveryone hates to pay for services. It doesn't matter who that service person is. Its funny how a doctor complains about paying his mechanic $75/hr. If you are a Professional then you deserve to be compensated fairly. If your prices are competitive, and work is quality then you should get business. Just ask them what they pay for a plumber, lawyer, doctor, mechanic, etc. per hour. Remind them you are a Professional also. Tell them what your competitors make, and the quality of work they do. Show them pictures, references, and anything else to persuade them. You might even want to get a Professional Sales Person. Don't Quit!!
by Roger - 11 months ago


