READER REPORT:

Small business: Greener grass or artificial turf?

JOHN MCARDLE
Last updated 12:00 19/08/2014
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SETTING UP SHOP? Then do not be undercapitalised, do understand the effects of rapid growth or decline, and do remember that Cash is King.

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The belief that a PAYE person, or gatherer (employee), has a lifestyle that is a lesser or greater calling than the GST traveller, or hunter (self-employed, SME owner) is neither here nor there.

If you do not know the difference, then stay as a PAYE person.

The advent of the internet has dramatically transformed the PAYE person and added challenges and benefits at no cost to them. The GST traveller has no choice but to catch up and pay for it.

You need money to make money, otherwise you play the high risk stakes of the entrepreneur and those guys/gals are few and far between. And we are all better off for them.

But someone has to run the "factory" and turn up to work every day for an economy to function.

So, want to run your own business or somehow think you know how to better than your boss? Then do not be undercapitalised, do understand the effects of rapid growth or decline, and do remember that Cash is King. The banks and professional advisers will take your money anyway.

The taxman, however, always gets the last laugh either way. He always gets paid.

And if you think you are being cute by running your business with financial tinkering to lower your profitability to then lower your tax bill .... just wait until you try and sell your business!

To the GST traveller/hunter: Holiday pay, accrued holiday pay, sick leave, bereavement leave, maternity leave, subsidised superannuation, Christmas parties, time off for courses, entertainment allowances, are what? Oh, that's right - the privileges of the PAYE person, or just another tragic First World problem if they are not paid.

Gee, it would be nice to know you will be paid every week.

Perhaps the effective synergies, understanding and equalities we need from our society to operate our economy make this rather simplistic analogy of the hunter/gatherer relationship not such a good one after all. There are far too many prejudices out there.

So, everyone for themselves ... yeah right.


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