Why are you selling yourself short. When did owning a business or being an entrepreneur suddenly make you a great man! Money doesn't give people value. People give money value.
Originally Posted by HedonistForever View Post
Trickle down works because a poor man never hired anybody for a job, ever! Great people create jobs
I don't agree that it takes great people, just different people.
and their efforts trickle down to people who could not exist without greater peoples efforts trickling down to them.
Originally Posted by TrueBaloo
I should know, I'm one of them who had to look for a job that somebody else created. I couldn't start a company from scratch if my life depended on it and I bear no jealousy for those smarter than I, I applaud them.
Really now. How smart you are has nothing to do with business. The average business owner may not be the smartest guy around, or the most powerful. What he does have are the tools necessary to manage a business. That means, organization and accounting: things that are absolutely necessary for any business. These are tedious things that many people hate, they would rather do the things that are rewarding to them then collect taxes for the government.
If we use your logic Bernie Madoff is the best person on the freaking planet. He built a financial firm around the greatest ponzi scheme we have yet to discover. Why don't you ask all the people who lost there life savings , retirement and there house's to this great man!
If a poor man never created a job how did Amazon get started? If was founded by a guy who believed in himself and got people to support that idea. Jeff Bezos started Amazon in a freaking garage off an investment from his parents. I concede the point he was probably from a middle class family but my overall point stands.
Great men are defined by there actions and deeds to better society and themselves not to make money to keep score.
Originally Posted by TrueBaloo
Everyone has to pay taxes, and wages have tax withheld and sent to the government before people actually receive their pay. Businesses are organized to be tax collectors for the government.
I have started seven businesses, and sold three. Why do I need four now? Because, that is what society demands! Each real estate property is always placed in the name of a separate company to protect it from liability of the other companies. That is what we have come to. That is what the attorneys and the CPAs advise.
So, again it is about organization, not intelligence, and finding the right people to build the organization. Then the people have to be well paid, or they move on. In my case, more than 50% of the income is paid out in wages and withholding taxes. About 25% of the income goes for the purchase of company vehicles and travel expenses to keep people on the road, and the final 25% is for payment on building rent and support (such as office supplies).
The rent, of course, is paid to the other companies (which I own) which have titles to the buildings.
What do I wind up with? The buildings get paid for, and used to leverage bank loans for business expansion for the first company. The employees are happy, and do good work. I am able to have a good benefit package for them.
That is one way to try to organize a company that benefits everyone. The banks have to see the organization, and how everything is put together. To grow a company, a honest relationship with a bank is essential, just to get a line of credit to cover the roller coaster of money flow between accounts payable and accounts receivable.