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SmokinwithWilly

Fans helping fans and small business

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20 minutes ago, MMA said:

Well, you prove my point. Let’s use that for example. Let’s say OP’s business does generate $3m in revenue but he only makes $30k. He would be eligible to receive something from the stimulus package. Question is, how is he paying his employees during this time with only $30k? I’m not bashing what this post is about. I applaud that. I’m just confused.

 I operate every year with a certain amount of money that back for equipment expenses. Right now I'm using that money to pay employees while they're on downtime but still working. Because I generally use that money at the end of the year to purchase new equipment I'm just diverting it right now from the reserve account it would normally go into.

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Posted (edited)
26 minutes ago, Scrumtrilescent said:

Business revenue ($3M) does not equal his income ($30k).  When the owner files his personal tax returns, which the stimulus is based on, he claims 30k in income (minus deductions, etc.).  Thus he'd be eligible.  The $3m revenue is the business.  That goes to paying the employees, rent/capital costs, taxes, etc.  The revenue is the money their clientele pay them for whatever services they offer.

This @MMA

He sums it up well there, but further, the revenue the business generates covers the operating expenses which includes the owner's salary. The personal/individual stimulus is based on his own W2 or household income, not the business

Edited by RoaringRiot
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12 hours ago, Tbe said:

Owning a business doesn’t make you rich. The vast majority of biz owners aren’t. Most of the money small businesses make go to their employees or related expenses. 

yep. that's why my band declares a loss every year. we make tens of thousands on paper, but I have to pay 7 other musicians per show usually, we hire tons of contractors (photographers, pr folks, audio engineers, recording studio time, etc) and I as the owner of the group end up making nothing or losing money. And I can't pay anyone in the band if we don't have shows.

Extrapolate that to a much higher income business...

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54 minutes ago, RoaringRiot said:

This @MMA

He sums it up well there, but further, the revenue the business generates covers the operating expenses which includes the owner's salary. The personal/individual stimulus is based on his own W2 or household income, not the business

Ya I’m not sure how this is even being questioned. Most small businesses barely operate in the black. Even if the business makes mad cash. Most of them have investors that any profit goes back to, plus upgrade/repairs, etc. It’s not like the owner just gets all the profit.  

 

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50 minutes ago, hepcat said:

yep. that's why my band declares a loss every year. we make tens of thousands on paper, but I have to pay 7 other musicians per show usually, we hire tons of contractors (photographers, pr folks, audio engineers, recording studio time, etc) and I as the owner of the group end up making nothing or losing money. And I can't pay anyone in the band if we don't have shows.

Extrapolate that to a much higher income business...

80% of restaurants fail by their 5th year with 60% failing their first year. Out of most of those that succeed 1-3% is the profit margin, that goes straight back into the business or to investors.

A restaurant that does $3,000,000 a year spends $2,970,000 dollars on expenses. 30,000-90,000. There’s the owners salary right there. More than likely that profit will never end up in the owners hands.

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Our charity right now is supporting the local restaurants. Most of the spots on Main Street are pretty upscale so its fairly expensive but we are doing OK. Curbside service but it was $150 for dinner for four yesterday. Maybe that's the wrong charity but we like food and want these places to stay afloat.

I am a small business owner but luckily immune to the virus.

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1 hour ago, Harbingers said:

80% of restaurants fail by their 5th year with 60% failing their first year. Out of most of those that succeed 1-3% is the profit margin, that goes straight back into the business or to investors.

A restaurant that does $3,000,000 a year spends $2,970,000 dollars on expenses. 30,000-90,000. There’s the owners salary right there. More than likely that profit will never end up in the owners hands.

One of the absolute worst things a person can do is open a bar or restaurant. Money pits. It’s like owning a boat. 

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8 hours ago, RoaringRiot said:

The business’ revenue is different than the owner’s income/salary. The business could generate $3M in revenue but the owner might have only made $30K. They’re not the same things. 

Yep and especially many small business owners who invest a lot of their money/potential income in their business to get it to grow faster. Ultimately when you own a small business you need to decide how much money you make and most small business owners I know will take much less than they probably do deserve for the work put in and use that company profit to grow the business rather than pay themselves.

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3 hours ago, MMA said:

Well, you prove my point. Let’s use that for example. Let’s say OP’s business does generate $3m in revenue but he only makes $30k. He would be eligible to receive something from the stimulus package. Question is, how is he paying his employees during this time with only $30k? I’m not bashing what this post is about. I applaud that. I’m just confused.

He’s not paying his employees out of his own pocket, their salaries are business expenses.

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40 minutes ago, 4Corners said:

One of the absolute worst things a person can do is open a bar or restaurant. Money pits. It’s like owning a boat. 

Depends what you mean by boat... I have a 16 ft Jon boat I built with a very nice fishing setup (fish finder, gps, comfortable seating, storage, livewell, retractable canopy, and a tiller motor I work on myself) that can fit up to 5 people fishing depending on size and can cruise on lakes, rivers or whatever no problem.

I think the cost of building and owning it has been significantly less than the money I’ve saved catching fish for meals rather than buying groceries. That’s not counting how much fun it is either.

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On 3/26/2020 at 8:14 PM, SmokinwithWilly said:

One project I'm working on is making a deal with local supplier to get a few hundred pounds of pork shoulder for a few of my friends and I to BBq to distribute to our senior citizens. Should be able to get the shoulder for under a buck a pound or close, it helps him sell his excess meat, and we get to kick back, bbq, and enjoy a few jars of apple pie moonshine. Win-win.

That's wonderful work. Have fun! Just remember, 6 feet. If you get the virus you won't be able to help your employees, look for projects, or BBQ for charity.

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