Thoughtful Thursdays - Why Leave YOUR Money on the Table? - A Rant for Canadian Small Business Start-Ups

Today's thought is more of a rant.

It always puzzles me when an owner of new small venture, operating as a sole proprietorship, resists setting up a basic business infrastructure at the outset. To be honest it really disappoints me when I hear the excuses. Here are two I have heard more than once.

• I'm waiting to get my first order before opening up an account for the business
  
• I don't have to participate in the GST, my sales are or will not be $30,000 a year

In my opinion, both are signs of a lack of commitment to the business idea. I have a lot of difficulty getting my head around the first one and the second is a huge red flag.

I agree that if your sales are below an annual rate of $30,000 the Government of Canada says you do not have to participate in the Good and Services Tax. What kind of message does that send to the customer? They aren't stupid, they will know you are a very small business and chances are you may not be around for long, especially if you expect the business to be self-sustaining. What is worse is that you are probably leaving money on the table - your money!

And what about HST? It is coming July 1, 2010.

Unfortunately many of the people that fall into this category are the ones who can least afford to throw money away, not that anyone can. Perhaps you think you are doing your customers a favour? You might be, but why at your expense? What happened to your value proposition?

If you are serious about starting a business and are thinking of not setting up a proper infrastructure for any reason, think again. Would you plant a garden, not water it and expect it to flourish?

Good selling,
Richard