Monday, November 20, 2006

PAYING THE COST TO BE THE BOSS


When you're in charge, you are saddled with the responsibility of making sure the business runs smoothly. The taxes get paid, your employees get paid, your suppliers get paid, and somewhere down the line you get a few bucks. After all, if you're not making a profit, you're not in business. Having a hobby is great, but most of us don't make money off it.
The simplicity of "buy low, sell high" doesn't always work that way in practice. There are many factors such as overhead, competition and service or production problems conspiring to decrease your profit margin.
Generally speaking, most small businesses are either retail/wholesale, manufacturing or service. In the retail/wholesale area, it is a matter of getting the product from your supplier at a low price, so you can sell at enough of a profit to cover your overhead and have something to show for your efforts. In manufacturing you're buying various components and making them into new products to be sold either retail or wholesale. The service businesses sell their time/labor, but can make a profit on selling equipment/components that may be necessary.
Of course this is a simplistic view of business. Any business that you own will be more work than working for someone else. Be aware that being your own boss is not for everyone. There's something to be said for a steady paycheck and benefits. Some people are great employees, some are great entepreneurs. However, it is possible to do both, to some extent.
My wife, Susan, has a new blog(I love the name), You're Not The Boss Of Me. Check it out, there are some great ideas on it.
Have a Happy Thanksgiving, a true American holiday that overlooks religion and race, but can be tailor made to anyone's creed. Please remember the less fortunate today.

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