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Post by assassin on Sat May 19, 2018 3:13 am

Has anyone ever wondered why and how we do business, actually we do it every day with any transaction; but why are people encouraged to start a business and why do so many businesses fail.

In reality most people are milked for several things and money is the most obvious if it all goes wrong which it does in the majority of cases, and if you are successful your business is targetted by bigger businesses for its ideas, products, or its people; all of which have an asset value to larger companies, and then there are the ideas which can have decaded of potential income for a larger business who have the resources to invest in your ideas and/or developments.

Many people are seduced into starting a business and this is solely from a visual appearance, a shopkeeper may visually only open at 9am and close at 5pm and many people mat think that is all they do, but if they are a greengrocer they may start work at 4am and go to the market or wholesalers for their stock, they will need a van which needs maintining and insuring for business use, they will need premises which are usually leased for a fixed period, time to set up the shop when they return with new stock and rotate the old stock so it is sold first, they have to clean the shop and then set up the till with a cash float. They have to comply with ever more prohibitive legislation and this is always expensive and loaded against the business owner, then after they close the shop they have to cash up and eother lock cash away in a safe they will have to buy, they may go home and have to do the accounts, and this 8 hour day has suddenly turned into a 12 hour day.

They face competition from local supermarkets which are like fleas, they are opening up everywhere in any space they can so the small retailer has to compete on a different level and hope to attract the "inconvenient trade" to their premises and hope they attract enough trade which purchases in sufficient quantities for them to make sufficient profit to pay their outgoings, the rent, the business insurance, the personal liability insurance, the premises insurance, the VAT and tax, the accountant, and that's before any staff wages and your own wages.

Many people know that most businesses fail, and this is where the vultures are hovering, the landlord will demand a lump sum for the rest of the terms of the lease, HMRC and they get priority, any suppliers, and any other outstanding accounts you may have; then there are the solicitors preparing cases against you, the courts make huge sums for doing very little other than stamping paperwork, and finally there are the bailiffs looking to screw you over for anything they can, they will strip a business of all its assets, they will go for all of your personal assets so your house and car will go as the vultures love business failures and make a fortune out of it.

What if your business succeeds? then your competition may look to buy you out, they may simply buy your business for your order book and its clients, they may be looking to eliminate the competition to bolster their own profits, or they may be looking to rip off your ideas or inventions, they may be looking to headhunt certain members of staff.

Who wins? the system always wins, go bust and they asset strip you and take everything you have worked for, succeed and they get plenty of income ranging from taxes and insurances through to employees spending their money in numerous outlets who also contribute to the system.

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Join date : 2017-01-28
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