Thinking BIG will save your business pt 1 – think structure, save $$$
Entrepreneurs who want to change their world and possibly even rule it, constantly think big picture and act accordingly. They paint their destiny in bold brushstrokes and display it for all to see. This isn’t for everyone of course. Some prefer to stay out of the limelight and achieve some form of success on the smaller commercial stage and leave it at that. Either way, business is business and there are ways to help set you up for success regardless of what success and/or satisfaction looks like to you.
Ignore the “get back in your box” crowd
Don’t grow too big too fast, stick to what you know, stay in your lane, don’t overstretch, carve out a little niche for yourself, go it alone – sole trader’s the way to go. These are pieces of advice that have some merit but too often they limit the thinking of the ambitious and stunt the natural growth potential of small business owners. The truth is that even if, for whatever reason, you as a business owner wanted to focus on a certain clientele, keep your operations small and limit your exposure, thinking big will help you, protect you, maybe even save you.
There are dozens of reasons why thinking big(ger) structure-wise, will help even the smallest operator in a niche market. Here are just three to start with:
Flexibility – you may want to stay small or start small and that’s fine but if you remain open to the possibility of growth, when opportunities comes around (and they usually do when you least expect it), you’ll be ready – if you want to be. The last thing you want is to recognise the opportunity of a lifetime, only to find that you are structurally ill-equipped to take advantage. Be ready!
Protection – the right structure means better protection. What I mean by that is that a Company structure provides better protection for you and your personal assets than when starting out or remaining in a sole trader structure. A lot of people see the increased costs of setting up a Company versus the low cost of a sole trader and make their decision based on initial outlay. Unfortunately, this may leave them open to actions that may put at risk their house, car, profits… Speaking of which…
Tax minimisation – sole traders can often find themselves in the unenviable position of handing over half their profits to the tax man – unnecessarily. By thinking big and structuring your business accordingly, you protect more of your company’s profits and pay only 30% to the tax man.
One of the keys to sustainable success in business is knowing what you want to achieve and how, remaining open to opportunities and being equipped to protect your profits. Thinking big will help achieve that. Think about it.