Quote:
Originally Posted by dogtown tom
Huh?  |
As an owner of a small business, you know that while you can make a good living off it, the business itself does not have to make money. A good accountant, even when showing a profit, will try to keep it to a minimum. A small mom and pop business doe not have to pay out to shareholders like big box corporations and pay the salaries of corporate staff. Many have a small staff if any so payroll is small or non-existent. This is what I see from around here much of the time. Owner is retired or semi-retired. The spouse may be also or the spouse may work somewhere else. In the case of the store in my first post, the wife made enough money and bennies for both of them to live on anyway. The business was a great tax break for them and more of a hobby than a huge money maker. Even in instances where the business is the main money maker, it still takes the good business sense and the tax incentives that small businesses are entitled too, that I also mentioned in my first post. Seen it several times where a small Mom and Pop business sells out or is passed down to a kid, and within a year or two closes. Customer base and location is the same, only thing that changed was the way the business was run.