Any help for a restaurant start-up?
My wife and I plan on opening a resteraunt. My wife has 10+ years as manager, baker, ordering stock, basically everything.
I my self have had similar experience, when I was younger of course, but I am a hard worker who has NEVER been turned down for a raise, I also catch on really quick to just about everything. So in a year ot two it will be possible for us to have a financial backer, so start-up money is pretty much taken care of. so to my questions…….
I would like to know things like…….
Does it really count to have some busines degree or training when looking to lease a building , or open a busines account?? (both of us have all our pre-requisites out of the way right now so it wouldn’t be hard for us to continue on, in fact I plan to)
Opening a "franchise" as opposed to starting from scratch?
Research tips on best area to open in, near malls etc.
Buying equipment…. proofers, baking racks, ovens etc.?
Tax breaks and incentives?
What ever else you think can help.
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Explain to me “Trickle down economy” concept (read the whole question first).?
So, trickle-down economy is being promoted as some sort of an economic panacea. Give tax breaks to high income earners and they’ll create jobs the thinking goes… I do not see this effect at all.
I run a small business currently with 38 employees. First of all, every penny I pay in salary and benefits are direct business costs paid pretax. Strictly speaking, my personal or business taxes have no effect on my ability to pay the employees no matter what the rate is. It simply does not come into account until I get to the bottom line.
Now, would higher taxes on the net income cause me to lay off people? This could be rephrased like this: would I choose not to make profit if I get to keep only 50 cents instead of 55 cents. The only way I could see that happening is if I was some sort of a nutcase anti-tax activist willing to suffer for the cause. Business activity is driven by pretax profits in general.
Well, would the higher tax force me not to buy new equipment required for expansion? After all, I’d probably end up with less capital to spend due to taxes. However, almost all capital spending is eventually tax deductible. I may have to go through depreciation and other tricks, but, still, I get to deduct most of the spending eventually. Besides, most equipment is leased or financed in the first place, so it’s paid pretax anyway.
Would the higher tax cause me to spend less personally? No. I spend about 10% of my income. More money will not cause me to spend more. Less money would have no effect unless it cuts into the 10% I need for my living expenses. I know literally hundreds of people who are in the same situation as I am. The rest of the money is invested.
Would I invest less outside of my business? Yes. But, a certain portion of my investments is tax-sheltered, so it does not matter what the tax is. As for the rest, for the last 10 years it went straight overseas. US did not benefit from a single investment penny from me. China and other emerging economies did. Why? The returns are higher there.
What would cause me to hire more people? Here’s one thing: if my customers, who are mostly middle class and below, have more money to spend. If each customer spent 5% more, I’d be able to double the number of my employees and double my profits. And, I’d be happy to pay more tax on those profits.
Now, I am not even touching issues like the national debt and the obvious failure if this policy over the last 8 years. Pretend that these issues don’t exist. I just want to understand the thinking behind it.
So, please provide a solid logical explanation of how lowering taxes on businesses and 0k + earners leads to more jobs (jobs in China don’t count). Provide facts, academic research, anything that supports this idea without partisan BS. The most logical explanation gets 10 points.
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