Living in Texas, I see small independent businesses like hair salon, Thia food, food shops, ect... How do these places stay open and do they make money. Is the tax system basically their way of making cash to stay open. These places stay open for years. It is the small stores that just don't go away but no one goes to. Is it the tax code?????
2007-10-09 04:35:45 · 4 answers · asked by Aslar 1 in Business & Finance ➔ Small Business
Taxes? No! Customers are required for any business to stay alive. Unfortunately, it can be quite seasonal for the business. They also have no controls on those seasons. Sometimes it is dictated by gas prices. Stores like WalMart drive these small stores out of business. Once all of the small stores are gone, Walmart's excellent prices will be gone also. Once they are one of the only places to go watch their profits. You only know you are saving money with Walmart because of the small store. The small store reflects what a product cost. Walmart, Target, and stores like that get what are called Economies of Scale. You get to buy it cheaper because you are ordering several thousand items. Costco did this (bulk,) but Walmart took it to the next level (individual items.)
The small store is making it but barely. More and more often they are owned by foreigners who have their illegal relatives working there so they don't have to pay a fair wage or employment and worker's comp taxes and fees.
Pity.
I hope this helps you.
2007-10-09 04:57:29 · answer #1 · answered by blaqcat2nv 2 · 0⤊ 0⤋
I guess they have to be making money. May not be a lot, but, evidently it enough to stay in business.
Some people that have their own business not have to make $50,000 a year. We may be surprised when a person makes $10,000 and they are happy. They may live simple and enjoy an easy stress free business. Also, if they married or live with someone. The other person may be the big money maker and they just making the play money for the weekend. This just my guess.
2007-10-09 04:47:35 · answer #2 · answered by Snaglefritz 7 · 0⤊ 0⤋
Tax code as a way of staying open?
thanks for the giggles. most small strip malls cater to clients of the area or of certain needs. the small biz have lower and smarter over heads than others.
thanks for the tax giggle
2007-10-09 04:45:39 · answer #3 · answered by Anonymous · 0⤊ 0⤋
commerce or maybe they have bookmakring activity
2007-10-09 04:43:55 · answer #4 · answered by Michael M 7 · 0⤊ 0⤋