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Show Small business preferred By KENNETH J. ROSE Business Counselor General Business Services Bountiful I have always had a suspicion that small business enjoys a better public image than big business. This was recently confirmed by a Roper Organization Poll which reports re-ports that 43 out of 100 people have a highly favorable view of most small businesses while only 17 out of 100 have good feelings about big business. WHY IS this? Small business is more flexible and able to respond quickly to meet the needs of clients and customers. Small business is also more directly involved with their clientele which gives a personal per-sonal touch. Smaller businesses tend to be innovative and the Department De-partment of Commerce tells us that small business developed about a half of all major inventions through their ingenuity. Unique specifications specifica-tions can be met that big business would not have time for. Small business is worth that vote of confidence! confi-dence! Unfortunately, small businesses die because of incompetence. The ease of entry for the inception of a new business gives the opportunity to fail as well as succeed. SLOW PAYING customers, costly operating expenses, inventory inven-tory difficulties and a poor location loca-tion may spell doom. Poor management manage-ment is the reason that many young businesses fail but a contributing factor is how relatively easy it is to get started. Practical knowledge and common com-mon sense as well as being able to adapt to change are necessary to succeed in today's market. Successful Suc-cessful entrepreneurs who begin a business tend to find new ways to do things, and to be self confident and reasonable risk takers. They are goal setters and willing to work hard to achieve these goals. THEY ARE also responsible for decisions made. They use a measurement mea-surement of performance to defer- mine the return on investment and growth rate. Profits are indeed a reward and a "ruler" of performance perform-ance although the goal setter tends to set another goal when one is reached. Profits may be invested back into the business to achieve them. Through proper recordkeeping, the entrepreneur will have information infor-mation to provide accurate and complete financial statements, tax returns, budget plans and cash flow projections. A good tracking system sys-tem tells if the venture is making a profit and what the venture is worth. A GOOD accounting system . should provide monthly balance sheets and income statements so that the business owner can realize where he is and where he is going. When the average business owner own-er works the first four months of the year to pay for government services ser-vices with taxes, it's worth making use of a business counselor to legitimately legi-timately reduce tax liability by tax planning with the use of adequate records. |