The Biggest Failure

In the past 30 years, I've seen many small businesses come and go.  Many of the owners of these small businesses sought counsel from various members of our family, so from a young age, I was able to hear alot of what to do and what not to do if I wanted to keep a business going.

Of course, we all know that there are many factors involved in a business' success.  Sometimes, it seems like just dumb luck that allows one person to stay in business while another closes up shop.

But, I will share with you today one of the most common things that causes a small business to fail. 

Not Paying Your Taxes.

In our business, my husband takes care of filing our paperwork and paying our taxes.  Because part of our business is retail, we collect sales tax from our customers and pay it to the state government once a month.  It's always shocking how quickly 6% of sales can add up!  There are also the payroll taxes that are withheld from our employee's paychecks and also paid to the state and federal governments monthly.  Property taxes...income taxes...the list continues!

It is very easy to spend these taxes while they are sitting in your checkbook, before they are due to be paid to the various government entities.  You'll pay yourself back, right?   DON'T DO THIS!

Set the taxes aside or hide them in a totally different account!  Additionally, set aside 25% of any net income that your business realizes for your personal income tax. 

You will put yourself out of business very quickly if you are not very diligent about paying your taxes on time!