Article DetailsAdvantages of running a business |
| Date Added: April 29, 2009 09:22:14 PM |
| Author: James |
| Category: |
| Nowadays people are looking for an opportunity to provide a better lifestyle for themselves and/or their families. Especially with how the global economy is, people are looking. People who are categorized as employees normally work a certain number of hours in a day, which is traded for money that a business pays them. From a business perspective, the more employees there are, the more time is multiplied for the business in order to increase earning potential. For instance a business owner has the advantage of multiplying time. For example, a retail shop owner can hire a clerk to stay at the cash register and deal with customer transactions and hire another person to stock shelves and clean. With two people working at the store, the storeowner now has 24 hours to delegate work which has to be done (if employees and owner work 8 hours daily). It does come at a cost to the owner because he/she has to pay for all those hours in exchange for service. Another advantage of operating a business is the ability to dictate hours for the owner to work. The owner can let the employees handle business, while he/she goes out to a vacation. Realistically, in the above scenario it depends how reliable the employees are. If they were the type that would be unmotivated to work if the owner was not around, then it would not be a good idea to go on a vacation. Nevertheless, the option is there for an owner to dictate hours worked. Furthermore, running a business allows for tax advantages for the owner. In a business, business expenses are deducted from the revenue generated, and then the appropriate tax charges are applied. In an employee situation, income is taxed, and then expenses are deducted. In other words, a business owner can deduct business expenses which the tax authorities consider a business expense from the total annual revenue and tax that amount i.e. Total annual revenue = 100000, annual business expenses = 60000, taxable revenue = 40000. There are a lot more advantages to running a business but those are just the key ones. |
