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In this article I’ll be talking about the things that could come and snatch the life out of your business in front of your koro koro eyes.
Of course there is a long list of things that could harm your business if you don’t pay attention to them, but I decided to go light on you with just 2 of them.
Now the reason I chose these 2 is because they are the ones that is tricky to manage, mostly because some business owner deal with them with this attitude of “don’t worry I got this, it’s not a big deal or when the time comes”. If you’re guilty of it, please is time to dial back and recalculate your steps before it’ll be too little too late .
- Accumulated Value Added Tax, VAT for short
Most incorporated businesses neglect this and when I see people like that, I’m literally scared on their behalf. Their excuse is always, is it not this country again, it’s not that serious. Your VAT is a 5% charge on all your revenue. It’s the tax payable by your customers for using your product or your services.
For those of us that travel to the western world, especially America, you know that there’s nothing that’s not taxed. You pay tax literally on everything you buy and every move you make. And you don’t get to argue with the people selling to you. The worst you can do is not buy, but you can’t even do that because you’ll end up starving.
As a business owner is your responsibility to charge your customers or clients a 5% fee on any purchase they make from you. At the end of the month, you deduct all the VATs you’ve accumulated and remit to your tax office. It’s really that simple.
If you fail to do this: 1, the money is going to pile up. 2, you’ll have to pay from your own pocket. 3, and the most dear to my heart it limits your chances of expansion.
If you wish or plan that one day your business will attract investors then you have to take this more seriously. When investors are buying into a company, they’re buying into the potential success of that company, that’s enough risk for them. You’ll be making it very easy for them to reject you if you want them to buy into your debt as well. They’ll always do their due diligence and make sure you’re at least debt free and financially stable before they buy in.
If you’ve not been doing it and you’ve incorporated your business, please start today. Charge 5% on all your sales and before the 21st of every month, go to your tax office and remit. If you need further information on this, just book a session with us and I’ll show you how to go about it.
- Poor Leadership
As a business owner you’re a leader even if you’re a sole proprietor. Your daily decisions and practices will accumulate to have a huge effect on your business on the long run. It was Jim Rohn who said “Everything affects everything else”. Every let down affects the entire performance. Every new discipline affects the rest. It’s a repel effect. Key is to diminish the lack and set up the new.”
If you have a team, endeavour to create a safe working environment for them. I’m a firm believer that people naturally mirror the stimulation around them, as in respond to the environment they’re in. And it’s been proven by several research that if you create the right environment for your team, they’ll do remarkable things.
According Simon Sinek, It’s your responsibility as a leader to create a safe environment for your team and take care of them. If you create an environment where people feel valued, the natural response to that is trust and cooperation. Remember that trust and cooperation are feelings not instructions. There’s no PowerPoint you can possibly deliver that at the end they’ll be like hmmm – now I understand how to trust you. It doesn’t work that way, it’s a feeling.
On the other hand if you create an environment where your team fears you, the natural response to that is mistrust and selfishness. And they’re only doing that to protect themselves from the environment.
I know some of you might want to disagree with the argument that some people are just bad people. As much as I would love to argue that, I totally get where you’re coming from. Remember that you’re the leader. You’re the one to make the tough decisions. If you find out someone is a bad fit for your organisation, let them go. As long as you satisfy your conscience that you did your best to create a good working condition for them. It’s not by force, just let them go. Because the cost of keeping the wrong employee is very high, I don’t think you should ever have to pay that price.
Like I said earlier, there’s a long list of things that could kill your precious business but let’s leave you with these 2.
I hope you found it really useful.
If you need help with protecting yourself from unnecessary tax liabilities, give us a call on 0703 838 9471 or send us an email via firstname.lastname@example.org. We have a team of accountants and tax auditors that will help you set your records straight.
If you need help with managing your team, we have a leadership workshop/training for young business owners. Give us a call on 0703 838 9471 or send us an email via email@example.com to find out how you can be a part of it.
Thank you so much for reading, see you in my next blog.