Weekly Business Idea

June 22, 2018 – Will You Survive?

Posted on | June 22, 2018 | No Comments

Main Idea:

Are you a planner or a reactor?  Do you do business in multiple states?  Do you know who your competitors are?  Do you know who the disruptors are in your business?  Do you have too much to do and not enough time to do it?  Are you sure of the answers to any of the above questions?

Expansion of the Idea:

Yesterday, the Supreme Court overruled 50 years of established business practice and opened the door for states to collect sales tax on internet sales.  Whether you agree with it or not, everyone saw this coming.  The business environment has significantly changed since this was last ruled on in the Quill case primarily due to the internet.  This ruling opens the door for nexus to be revisited and this could impact everyone, even the home businesses that occasionally sell something that is delivered to one customer in another state.  This will be a cash grab by poorly run states (almost all of them) and small business owners will face increased compliance costs.

Six months ago, Congress passed a major tax act that dramatically changed the tax structure for small and large businesses.  This was passed to make the United States more competitive internationally.  As a result of the tax law, every business needs to evaluate how they are structured to make the most of the new tax law.

The changes in nexus and income tax should get every leader’s attention.  If you throw in the internet, state regulations, proposed tariffs, full employment, lower barriers to entry in most businesses, and a whole host of additional factors, you end up with a very precarious business operating environment.  A lot of people might look at all of this and ask if they should continue.

Now that you are depressed, you also need to look at the bright side.  The economy is doing well.  With technology it is easier to get closer to your customers.  You have more information than you have ever had about your business, your industry and the economy.  Markets are easier to enter.  If you think about it, you could add another half dozen items to this list.  The point is that there will be winners and losers.  The key question is:

What will help insure that you are a winner?

Here is my top ten list for how to make sure you are winning.  This is not in any particular order except for number 1.  That is critical for all the other items.

  1. Make sure that the leader’s attitude is a winning attitude.
  2. Proactively manage the situation versus reacting to external events.
  3. Get close to your customers.
  4. Get close to your team.
  5. Provide tremendous value to your customers
  6. Know the critical success factors for your operations and how to measure them
  7. Clarify your marketing message and plan.
  8. Be innovative and creative.
  9. Know your purpose.
  10. Know what you won’t do.

The above list is not all inclusive. However, if you are doing these things, you will be on the right path.  We will discuss these in detail over the next few weeks.  Right now, I would encourage you to think about each of these and pick one that resonates.  If the sales tax issue scares you give us a call or send us an email to discuss it.  If you are concerned that you aren’t innovative or creative, discuss it with your team.  The point is to pick something and start working on it.  Now is a great time to build a business.

Comments

Leave a Reply





  • About

    These weekly ideas are brought to you by FitzGerald & FitzGerald P.C. For more information about how to use these ideas with your small business contact Tim FitzGerald at trfitz@fitz-net.com.