starting a business...during the recession :S

Summary

This article talks about tips for launching a small business during the recession. It gives four good reasons for yes to starting one, and they are as follow:

1) There is less competition.

2) Costs can be lower because it's a buyer's market for real estate, equipment and labour right now.

3) It can be easier to recruit new employees because people who have been laid off are eager to find new jobs.

4) last but not least, There is less pressure on youto expand your buesinss. You don't have to worry about fighting with other companies for market shares.

But before all these, another 4 things that one has to take in consideration before starting a business is to:

1) Do your research, and that means figuring out who your competitions are, and offering something new and refreshing to attract customers.

2) Secure enough funds, and that means don't even think about starting a business undercapatalized! Talk to a bank teller, and ask them for advices on loan borrowing...

3) Get creative with your marketing. People are natually attracted to things that are different, interesting, and full of surprises. Eye-catchy ads are important, as finding cheap and efficient ways to do so as well. (ps. there are a lot of free advertising available online and cheap ones on the ever popular ones like Facebook.)

4) Be prepared for the goods and the bads. In simple words, WORK YOU ASS OFF, AND PREPARE FOR ANYTHING... and that is... anything POSSIBLE :)

Connection

This article is related to the overall of chppter 11 - 16 in the accounting textbook, by they how it talks about what businesses are and the processes and procedures that may be related to one.

There would be the need of accountants to keep the business's financial status updated and well regulated.That includes, payroll accounting - salaries and wages, tax deductions...etc. Analyzing financial statements - making appropriate comparable statements for the insiders and outsiders.

Last but not least, Banking:

- safekeeping of the business's $$$
- processing cheques and bank credit card vouchers, and electronic transfer of funds.
- lending money to businesses.

- and handling of foreign currencies.

Reflection

I know it is a scary move to make, to head out on your own and start your own small business. The comfort and security that working for someone else goes away. You become 100% responsible for 100% of everything involved in running your own business.
The big question is trying to figure out if your idea is one that will catch on
But hey, a recent report shows that small business shines in tough economy. One more thing, you must have faith in your self, and the determination to succeed, else there will be no point of starting anything.

CHAPTER 16

GIMME GIMME MORE ..... $ :)

SUMMARY

This article talks about some of the new government regulation and policies on income taxes in 2009.

According to the Canadian Taxpayers Federation, the higher employment insurance and Canada Pension Plan payments will wipe out skimpy tax cuts for many Canadians in 2009.

In the past, CPP contribution limits are nomally raised each year while EI rates are lowered, which makes the overall increase to payroll taxes very small. (Payroll taxes are federal taxes that an employer is required to withhold and/or to pay on behalf of the employees. the employer are required to withhold federal income taxes as well as social security and Medicare taxes from the employees' wages. The employer is also required to pay a matching amount of social security and Medicare taxes for the employees and to pay Federal unemployment tax.)

But next year, both the EI and CPP contribution limits are giong to increase. Canadians will pay an additional $188 in payroll taxes, said the federation in its annual new yer tax change calcualtions.

CONNECTION

Part of this chapter talks about payroll dedcutions (as described above as payroll taxes)

employment insurance - designed to replace a portion of lost wages to qualified employees who are laid off because of lack of work or who become ill for an extended time. Working Canadians pay a percentage of their earnings into this government-run insurance program.

and the Canada Pension Plan - which are retirement plans administered by the government. Generally, the amount you receive when you retire depends on the amount you paid into it. Canadians are fortunate to have access to a wide range of government programs and support services. To cover their cost, every working Canadian pays a portion of their earnings to the federal and provincial governments in the form of income tax. Higher-income earners pay more than those who earn less.

These payments all have a certain amount of contribution limits in order to receive the desired amount of renumeration and tax returns.

REFLECTION

Canadians are fortunate to have access to a wide range of government programs and support services. To cover their cost, every working Canadian pays a portion of their earnings to the federal and provincial governments in the form of income tax. Higher-income earners pay more than those who earn less. Some people deabte about our income taxing system, where it is unfair for a higher income earner to pay more income tax, this restricts the individual to advance for a higher paying job. But some argue that the higher income earners have the responsiblity to help contribute, usually to the lower income earners.

CHAPTER 15

TOUGH TOUGH TIME...

SUMMARY

Toyota, the world's largest automaker, sank into the red for the October-December quarter, heading for its first annual net loss since 1950 because of the plunging global sales and the strong yen, which reduces the value of overseas earnings, adding salt to the wound.
Until the U.S. financial crisis erupted last year, Toyota had been on a roll with its fuel-efficient models, boasting rising profits for seven straight years.
"the downturn came extremely suddenly," said Yasuaki Iwamoto, analyst with Okasan Securities Co. in Tokyo, "the world's auto demand just changed in a flash."
Just a few hours before the earnings were released, Moody's Investors Service lowered its top credit rating of "Aaa" on Toyota by one notch to "Aa1," citing fears about its profitability.
A turnaround promised by Kinoshita, Toyota executive vice-president assured investors that Toyota will get back on its feet through cost cuts and new products. He said Toyota continues to be committed to developing gas-electric hybrids as a pillar of its growth strategy.

CONNECTION

Chapter 15 talks about how people would analyze a company's financial statements in order to make decisions within and outside the company, and how they will affect the insiders and outsiders in relation to the values and information presented on financial statements. As mentioned from the article, it has been told that investors have lowered its top credit - "Aaa" on Toyota to "Aa1", something that doesn't necessarily sound so great anymore. This indication shows that investor's confidence in Toyota motor corporation have decreased; Probably an outcome resulted from the recent values and percentages stated on the financial statements of Toyota. While this unfortunate event have happened to the all mighty Toyota, the insiders, also known as the managers, and other executive management members of the company have made promises and decisions as to the commitment to continue offering excellent quality and high performance vehicles for the upcoming eco-friendly products.

REFLECTION

From newspapers to radio broadcasts, televisions, and even on the worldwide internet, news about numerous businessses and companies closing down are no longer any big surprises to the people living in the current state of an unknown period of financial downturn. Globally, it is obvious that everything is slowing down, but natioanlly, everyone (governments, especially) is trying their best to boost their economy back up and in turn to drive the global economy back to it original state, more or less, every bit of efforts counts. We can see this phenonmenon in the article above, where the all mighty Toyota Motor Corp. is currently expericing its first ever loss in decades, and yet, they are not beaten down by the downturn scare and are trying their best in everyway to maintain its status in the industry and concentrating on their research development int he effort to bring back up its sales and what not. They want to ensure their investors that they will not give up and is down for any obstacles that comes to them.