Wednesday, January 25, 2006

Decks and Fences for Cash?

Decks and Fences for Cash?

The first thing you have to ask yourself—Are you building your business for the future or for short term gain?

If you are serious about building your business or are you just augmenting your income at your regular job?

If your business loses money year upon year you will not be able to borrow money for expansion or a mortgage or to buy equipment.

When you are fudging the books the government knows. If you think you are smarter than the auditors you should re-examine your perceptions. Many people think that audits are doled out by lottery. This is a serious misnomer. What the government auditors don’t advertise is that they have a brilliant system for discerning who is cheating and who is not.

When people make up numbers they tend to (always) choose larger numbers than naturally occur. Look at the price of everything you buy. Large numbers. $19.99, $299.95, $27,999. Now… look at the number of 9’s. Multiply the first number x 2 , second number by 3, third number by 4… 39.98 , 899.85, 111 996, total it up
112,935.83. Use any made up numbers you like… in the end there should be a certain percentage of 1’s, 2’s, 3’s etc in your numbers. When cheaters get caught again and again they think it is a conspiracy--

There exists a formula in the main computer—when your numbers are inputted, they are compared to natural numbers. + Or - a certain percent and they know you have fudged the numbers. When you fudge the numbers you get audited so it simply is not worth the risk.

Secondly—Cash price is a method used by some people to get a better price—trimming your profit margin. If you were satisfied with a lower profit margin why not lower your prices and market your lower prices. You may be able to start another couple of crews who work for a smaller profit.

The third and most compelling reason not to do cash work is the fact that you are doing damage to your reputation. The majority of people see cash work as shady and underhanded. If you want your company to be seen this way—go right ahead.

We recently had a campaign manager for a prominent politician ask one of our licensees to do work for cash—You can bet I voted against his political party in this recent election.


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