Mistakes on Our Way to $88k in Revenue
beamjobs.com
beamjobs.com
No matter what anyone tells you, don't start as a C-Corp, unless you are sure that VC is investing in your company right away. Even the cost of winding down a C-Corp is substantial.
Let's say you did your accounting wrong and your company owes a bunch of money. These accounting mistakes usually account for double digit percentages of revenue.
If you own an LLC, you get the benefit of only paying taxes once unlike a double taxed C-Corp. The cost is pass through tax liability. If your company owes taxes, the owners personally owe taxes.
Let's take a real world example that happened to someone I personally know. They owned a dispensary, made some money not too much, everything going ok. IRS comes and says 4 years ago you did your taxes wrong. On revenues of ~$2.5M, she owed $400K that she deducted incorrectly due to 280e. In a day, she almost had her life ruined. She's back and opened a couple more dispensaries. She managed to survive others didn't.
If you had created a C-Corp, the business goes bankrupt. IRS collects what it can. You go on your way.
https://investinganswers.com/dictionary/p/pass-through-entit...
Growth is all about branching out and trying new things. Maybe some of those new things are dead ends, but I find trying new things or hobbies always helps me learn about the things I’m already passionate about. The stress relief and mental break ain’t bad either!
If customers are asking for features, processes, (your time), etc...then don't give that to them. Sell that to them. They'll pay if they really want it.
If a restaurant owner is asked why a certain thing is not on their menu enough times, the smart ones will get that on their menu. Is that new menu item free? Hell no.
At our size, the downsides to protecting most of our ideas are outweighed by the value we get from practicing our pitch.
Exactly: You tell once growth has stopped and you need a quick fix.
Total, not monthly.