Category Archives: Business Success

Your Taxes – What You Don’t Know CAN Hurt You

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Last week we started looking at a topic that makes most consumers rather uncomfortable – taxes. We either think we’re paying too much or we’re trying to figure out ways to pay less.

However, just like a persistent itch that won’t go away until you scratch, our obligations to the ‘tax man’ won’t disappear. It just makes good financial sense to learn more about our rights and responsibilities under the tax laws.

Recently the Jamaica Trade and Invest (Jampro) Corporate Finance Broker Unit hosted a seminar that highlighted some of the key tax matters relating to self employed persons and small business owners.

Presented by renowned tax expert, Ethlyn Norton Coke, the event featured discussions on the Jamaican tax system, tax deductions, GCT issues and compliance requirements. Continue reading Your Taxes – What You Don’t Know CAN Hurt You →

Your Taxes – No Escaping Them!

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“Beenie Man wanted for tax evasion!” the news headlines screamed. The popular Jamaican entertainer, whose real name is Moses Davis was in big legal trouble recently after he failed to turn up in court to answer charges of tax evasion.

According to the reports, Beenie Man owes nearly J$30m in back taxes and over J$18m in penalties. As Resident Magistrate Owen Parkins issued the warrant for his arrest, he issued a warning: “No one is above the law, not even me.”

Only time will tell the outcome of Beenie Man’s tax woes, but his dramatic story highlights a very sensitive issue for consumers- the paying of taxes. In Jamaica, most employed persons are taxed automatically through the Pay As You Earn (P.A.Y.E.) system, where their employers are responsible for deducting and paying over their taxes to the authorities.

However, as more people become separated from their nine-to-five jobs through redundancies or the desire to be their own bosses, non-compliance in paying taxes becomes a big issue. Continue reading Your Taxes – No Escaping Them! →

Small Business Financing: Is it impossible to get it without collateral?

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“After reading your column last week, I must agree with a lot of things you said. I am a small business operator for the past ten years and I have found that a loan is one of the hardest things to access. A small business like mine aspires to become a big business one day but when no one wants to lend you the amount of money that you want, you will never reach that goal.

“If every time I need a loan I can only get J$30,000 then I will remain a small business owner for life. Are the banks really interested in helping small business or are they just interested in making their interest? Let’s face it- a lot of small business operators don’t own land or houses so telling us we need a registered title or car title to access funds only drives us up the wall and give us no hope.

“As the saying goes BANKS ONLY LEND MONEY TO PEOPLE WHO DONT NEED IT.”

These are the words of a clearly frustrated business owner who emailed me last week. I have reprinted this passionate plea almost in its entirety because his views seem to reflect many of the concerns and complaints I receive constantly from entrepreneurs. Finding money to turn a business dream into a reality can sometimes be a nightmare. Continue reading Small Business Financing: Is it impossible to get it without collateral? →

Small Business Financing: What you need to do to get it

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The entrepreneurial spirit is alive and well in Jamaica, as statistics show that more and more people are opting to start their own small businesses. However, idealistic business owners are often hit with the harsh reality that most enterprises need financing in excess of what their pockets can provide.

Last week we looked at some funding options as outlined in the Small Business Financing seminar organized by the Jamaica Trade and Invest (JAMPRO) recently. These included the traditional forms of equity financing and short and long term loans, as well as alternative sources that involve making arrangements with suppliers or customers to improve the cash flow of the business.

Although there are varied options available for financing, small business owners sometimes find it difficult to access these funds. Continue reading Small Business Financing: What you need to do to get it →

Getting Financing For Your Small Business

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While many people who are stuck in a nine-to-five job may dream about chucking it all in and starting their own business, the reality is that an entrepreneur’s life is not an easy one.

When a person takes the big step to become his or her own boss, many daunting questions come to mind, such as; “Do I have what it takes to run my own show?” “What if my idea is not viable?” What will happen to me if I fail?” “Where will I get the money I need to carry out the business?”

One of the major challenges that business persons face is the need for financing. With many start-up businesses, the entrepreneurs have little more that a germ of an idea and a big vision to present to a prospective lender.

With the high failure rate among new enterprises, it is no surprise that many businesses find it difficult to raise the financing they need to succeed.

Continue reading Getting Financing For Your Small Business →

Business Planning for the Self Employed

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“I work in the financial industry, but my real love is teaching. However, I don’t want to become a regular teacher because of the low pay. I have some innovative ideas on starting a business in education but I am unsure how to proceed with them. Some of my concepts have never been tried before in Jamaica and I need some assistance in making them into a reality.”

Successful self employment and business ownership are two ideals which most people with unfulfilling nine-to-five jobs dream about. Some wish there was some way to make their hobby or passion make money for them, but never have the courage to give it a try. Others launch out into entrepreneurship with the enthusiasm of the eternally optimistic, thinking that being in love with a business idea is enough for it to be profitable.

The majority of small businesses established in Jamaica generally get started without a plan of action to guide the operations. People tend to think that they already have the skills to succeed, especially if they had gained experience in the business area when they were working for someone else.

The typical excited entrepreneur thinks- “How hard can it be to run a wholesale shop? I just need to buy the goods, price them right and the people will come!”

Continue reading Business Planning for the Self Employed →

Practical Help for Entrepreneurs

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“I read your column last week about the perfect business and I think that I have a great idea which would make a profitable venture. The problem is that I don’t know the best way to get started. I want to establish my business properly but I need some guidance to make sure I’m doing the right things. Do you have any advice for someone starting a new business?”

One of the biggest challenges facing prospective business people is not a shortage of creative ideas, but the lack of know-how to transform their dreams into viable opportunities. Sometimes, bridging the distance between a great idea and its realization may seem as difficult as climbing to the top of the Blue Mountains.

I can relate to the difficulties that face a new entrepreneur who is trying to start out with little more than a Big Idea. Many years ago I had an inspiration that I was sure would revolutionize the tourist-wear market and make me a lot of money. I secured some financing, went into production and brought my dream into reality. Continue reading Practical Help for Entrepreneurs →

Can There Be a Perfect Business?

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“Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were.” – David Rockefeller

Everywhere I go, almost everyone I speak to wants to make more money. Their heart’s desire is to have some earning potential outside of their regular nine-to-five job.

Some people wish to find a way of making ‘big money, fast’ and are not are willing to consider options that require slow and steady growth over time. Some are scared of the risk of losing money, and will dismiss any idea that would require a large capital outlay to start. Others want a chance to make money while utilizing their talents, in order to feel truly fulfilled.

Although their business ideas might be diverse and unique, there is one common denominator that floats through the minds of prospective business owners – they all want a business that’s perfect for them. But is there really anything such as a ‘Perfect Business’? Continue reading Can There Be a Perfect Business? →

Success in Business

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“Last year, I started my own small catering business. It’s always been my dream to do my own thing, but I’m wondering if I have what it takes to be successful in business. It’s really financially challenging right now to make ends meet. I need some assistance in organizing my business, but I don’t know where to turn. Help!”

Being your own boss is one of the most desired goals on many persons’ financial wish lists. We dream of having the chance to do what we’re really passionate about, instead of working just to pay the bills. We are sure that if we could only get the chance to do things our way, we would be fulfilled and wealthy.

The reality is that owning your own business is tough. Many of the skills needed for success in business are rarely learned in the classroom, they are mostly gained in the battlefield of experience. Many highly successful entrepreneurs will point to several failed business ventures, until they finally got it right.

So how can we increase the odds of operating a profitable business? Continue reading Success in Business →

Starting a Small Business

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“I hate my nine-to-five job, and I would love to work in a business of my own. I’ve always dreamt of one day leaving a large, vibrant company for my son to carry on, to give him a good start in the world. I opened a wholesale shop once, but I ended up losing a lot of money.

“I would like to start another venture, but don’t think I can afford to fail again. What can I do to guarantee success in business?”

It’s wise for you to approach starting a business with some amount of caution. A business venture can be a potentially profitable form of investment, and it’s probably the route to eventually achieving financial freedom. Unfortunately, there are many stories of people who have gone into business and lost a lot of money, even ending up seriously in debt.

Even though the failure rate is high for start-up businesses, it is possible for you to eventually achieve your dream if you approach it with careful planning. Here are some factors to consider for your next business idea: Continue reading Starting a Small Business →