Started By
Message

re: Small Biz Questions

Posted on 10/20/16 at 1:38 pm to
Posted by GFunk
Denham Springs
Member since Feb 2011
14966 posts
Posted on 10/20/16 at 1:38 pm to
quote:

WhiskeyDick
quote:

Depends on the business. Want some advice that most will say is bad? If it's retail or investment based, don't save shite and spend every penny you can and have it working for you. Saving money aside for taxes is dead money with the low MM account rates. Every penny I own is working for me in some capacity in every business I've ever started. Once you've grown and stabilized, save some back for unseen liabilities such as legal, cash crunches, expansion, etc. Until then, don't liquidate until March/April once you've figured out how much you have due and then pay the tax man. Making money is all about using it to make more of it while taking some risks. Especially regarding startups. If it's not retail/investment based then save a small portion of what you think will be due and blow it out on marketing to expand your business.

Some of my ventures I set aside as much as 70% for marketing. Ex: a membership based revenue model I'm running and started a few years ago. Overhead was low outside of initial dev work around 250k, and I spent every penny I made after that and put into marketing. I tapered off toward the end of the year so I had some cash for taxes, but had most of it in play in some capacity.


It's an interesting perspective to be sure. But we are talking about cash being withheld for taxes on a radically different scale. I'll probably hold back a grand or two for the 6 months I'll have been in business in 2016.

I'm not sure how I could put my money to work in that size or amount in order to generate more business, especially since the constraint right now is my time and availability. I turn down business as I'm working fulltime at a W-2'd gig that I don't have plans to leave anytime soon.

Not that I'm closed to ideas or suggestions, but the way you can put your money to work is much different simply because there's more of it to put to work by comparison. I'd love to explore the potential to do so, and perhaps I'm being dense but I don't see how I can spin a few hundred or even a thousand into something akin to or along the lines of a passive income generator.
first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram