🤔 What Are We Thinking? Week 25, 2022 🧐
We have seen a number of inquires for smaller parties and right now they don't make sense for us financially. We believe there is a sizeable market to monetize here, though. We're thinking something personal, smaller, that could scale easily (1 person, 1 car to operate)
By: Mitch Wooderson
Tuckedito
🤨 💭 Decisions, Decisions, Decisions
What do we do on a weekly basis? Well ... it changes each every week.
Kitchen
👶🏻 New this Week
🌮 Looking for an additional set up
We got our first taco cart from LA Taco Carts so we decided to give them a call again to try to get another set up. We are looking for something smaller, possibly electric so it can be used inside.
We have seen a number of inquires for smaller parties and right now they don't make sense for us financially. We believe there is a sizeable market to monetize here, though. We're thinking something personal, smaller, that could scale easily (1 person, 1 car to operate)
Another advantage of this is it would give us another stream of income during the winter months.
🚨 New Flavor
Poblano carnitas! Always exciting rolling out a new flavor. This one is carnitas and cilantro lime rice mixed with a poblano garlic sauce.
Financial
👶🏻 New this Week
💸 Expansion Questions
As I mentioned in this a couple weeks ago in this blog post, we are thinking about growth. We are planning to do this. Which will require us to take on some debt, adding more risk to our business.
Before doing this we want to make sure we have all our bases covered. So we scheduled a meeting with our tax accountant. We also sent some questions to a friend who owns a small business that does small business accounting.
Here are the questions we sent.
I know you mentioned withdrawing money from the business using the “Owners Draw” Accounts, and we had a couple of questions on that.
1. Would withdrawing in that way be pulling from equity in the business, opposed to if we were to put ourselves on payroll making it a labor expense thus increasing expenses and decreasing our EOY tax liability?
2. In addition to question one. Would showing lower net income then make it more difficult to get business loans? (I see this as being a tradeoff between the two either pay less in taxes and have a higher cash balance, or pay more in taxes and have a better opportunity to receive financing for expansion activities.)
3. A final question relating to the two above. As business owners, would this lower net income then affect our ability to get personal loans in the future i.e. mortgage loans?
4. For businesses that you’ve seen try to expand what are the main mistakes they make?
5. I feel pretty comfortable with the books. Is there anything that we currently aren’t doing (maybe because it’s a bit more complex) that could be advantageous to us?
6. Any advice you have on hiring, payroll, etc.
Marketing
👶🏻 New this Week
Videos and Memes
Here's one for ya, you can just check our instagram for the others
Until Next Time...
Make sure you check out future posts! If we come to any decisions we will include the how, why, and what for!