Monday, June 30, 2008

Common Myths

Mine Host has often encountered in others some firmly held (but completely erronous) beliefs about running a business.

Mine Host is not sure which is the most ridiculous assumption.

1/. Myth: Pubs have very little, virutally zero, paperwork.
Fact: Hahahaha ha ha haaaaa!!! Amazing how widespread this belief is. Actually pubs have always been noted for the tremendous amount of daily paperwork.

2/. Myth: Being the boss (especially one's own boss) enables one to take time off whenever one wishes, to take it easy, & to not even turn up at all if one doesn't feel like it.
Fact: A business is a treadmill which is almost impossible to get off. One does not decide for oneself how many hours one works, or even how hard one has to work. Simple stuff such as a few days off in a row (eg, a weekend) can take more than a year to come to fruition.

3/. Myth: Pubs are a licence to print money
Fact: There is no business so lucrative that it isn't possible to stuff it up. When Mine Host entered the industry the average time of a licencee in Qld was 22 months, most licencees left by the back door, usually one step ahead of receivership, but often not. A large proportion of small businesses regularly pay bills by putting a cheque in the mail without having funds in the bank, depending for the funds upon sufficient custom whilst the cheque is in transit.

4/. Myth: You gotta be making it to pay it (tax).
Fact: Mine Host is able to categorically state that it is VERY possible to have a huge tax bill, without having ANY cash surplus for the year. Many businesses have to make installment arrangements with the tax office. You can forget about anything left over for owner's drawings!
Mine Host is often bailed up by people who have "read about" taxation, who declare the aforementioned is not possible.
Mine Host's accounant informs him that it a very regular occurrence.

1 comment:

bruce said...

I had a shop once and it still makes me angry when I hear some public servant say a business must be 'raking it in'.

Bloody hell I was glad to get out, and I don't know how anyone makes a profit, without skimming govt subsidies and other lurks anyway.