Best Tips for those who want to do business honestly

business honestly

Why do entrepreneurs go into the shadows

The main reason is that the total tax burden may overlap the profitability of the business. It is more profitable for an entrepreneur to work in the shade, otherwise, his profit will become significantly less – he will give a substantial part of the earned money to the tax.

To be honest, you still have to pay taxes, but you don’t have to spend money on “cash-out”, through which the business hides state revenues. In addition, you will get rid of the risk of running into fines.

For example, if you make sweets to order, but work without an IP and do not pay taxes, you may be fined in the amount of 500 to 2,000 rubles. If you do not issue checks, you will have to give from a quarter to half the purchase price, but not less than 10,000 rubles.

How to work “white” and not go broke

It sounds paradoxical, but an honest business has more chances to become successful, even if its costs increase. To do this, you need to optimize the matter from all sides: reduce real spending and increase revenue. Here are the rules that will help withstand competition and work in accordance with the requirements of the state.

Evaluate your product better than competitors

Find out what the real value of your business is and determine the benefits that will help you break away from your rivals. So you will discover the areas for improvement at work.

What do we have to do:

  • Perform a SWOT Analysis. Using this technique, you can evaluate your business from the inside and out: find out the strengths and weaknesses of the company, and at the same time evaluate the opportunities and threats from the outside.
  • Create a company development strategy. An analysis of Porter’s five competitive forces will help. The author of this methodology, economist Michael Porter, believes that five factors act on the development of a business: the threat of the appearance of similar products from other manufacturers, the entry of new players into the market, the level of competition, the pricing policy of suppliers and consumer behavior. Evaluate how these threats affect your company, and figure out which ones you can handle and which you don’t.
  • Think about what other products and services your customers need. This is a backup plan in case the demand for your main product fluctuates. For example, an online tea shop can add dishes to the assortment: teapots or bowls.

Boost Marketing

Without marketing, buyers are unlikely to find out about your company, and you don’t have to talk about sales growth at all. To earn more, use modern promotion tools.

What do we have to do:

  • Use search engine optimization. SEO will bring you potential buyers from search engines. Often these are already ardent customers, set up for a deal.
  • Create accounts on social networks. Start with your company’s pages on VKontakte and Instagram. You can hire an experienced SMM ‑ specialist for this, but if you don’t have free money, entrust the maintenance of pages to a freelancer.
  • Launch contextual advertising. This method is suitable for beginner businessmen who need to get customers as quickly as possible.
  • Use marketing tools. For example, arrange promotions. It is more pleasant for the consumer not only to buy a can of honey but also to receive a wooden spoon as a present.

Collaborate with freelancers

So you can legally reduce the tax burden. Individual entrepreneurs and self-employed pay taxes for themselves, and you only need to transfer remuneration to them on time.

What do we have to do:

  • Use the services of workflow automation and payments. They take on the job of covering documents and help to quickly pay for freelancers.

Do not waste time on a routine

Automation minimizes the likelihood of failures. The less manual labor, the less chance that someone will make a mistake somewhere.

What do we have to do:

  • Automate processes. To reduce costs, first of all, take on those related to the production of the product.
  • Use off-the-shelf project management systems. Instead of reinventing the wheel, try Agile or Scrum.

Keep track of how your employees work

Here we must act in two directions: to control the work of subordinates and invest in their training.

What do we have to do:

  • Check if you are incurring losses due to employees. Sometimes it turns out that subordinates steal without a twinge of conscience. For example, drivers drain gasoline, justifying it with a low salary. Competent control over the work of employees helps reduce business losses.
  • Create a clear motivation system. The main principle of good KPIs is that they increase business efficiency and profit. These indicators should be transparent so that the employee understands how the results of his work affect the amount of the bonus.
  • Invest in staff development. Qualified employees are the engine of business. Do not save on training, these costs will return to you with an increase in profits.

Leave a Reply

Your email address will not be published. Required fields are marked *