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Entrepreneur
a day ago
- Business
- Entrepreneur
Doing nothing is still doing something
Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur United Kingdom, an international franchise of Entrepreneur Media. Every week, I speak to people who've just sold a business, inherited a lump sum, or hit a major milestone. Suddenly, they're staring at a big question. What should I do with this money? More often than not, their answer is nothing. In a world that feels defined by rolling uncertainty – from elections to interest rates, inflation to geopolitical unrest – many smart, accomplished individuals convince themselves that pressing pause is the prudent move. They tell themselves they'll wait for the next election, the next Bank of England announcement, or until the latest crisis in the Middle East or the US blows over. But here's the uncomfortable truth, doing nothing is still doing something – and very often, it's the wrong thing. We saw this play out at the start of the year when Donald Trump's likely return to the White House and the prospect of fresh tariffs sent ripples through global markets. Investors froze, and while the tariffs have been shelved (for now), the real damage had already been done – not to portfolios, but to behaviour. This is decision paralysis in action. And in my experience, it's most acute among entrepreneurs and high-net-worth individuals post-exit, many of whom are navigating wealth independently for the first time. It's human nature to crave certainty, especially when it comes to money, but if you're waiting for a time when everything is calm, clear, and safe before investing or making a financial decision, I've got bad news – that day is never going to arrive. Markets move, the political climate is noisy, the global economy is always in flux. If you're frozen by fear, your money isn't standing still – it's slipping backwards. One former client sold down their pension right before the Brexit vote, convinced markets would crash. The market dipped, briefly, then bounced. By the time they tried to get back in, they'd missed the rebound and locked in the loss. Others are still on the sidelines, holding out for the 'right time'. Meanwhile, the market has delivered double-digit returns. High interest rates have only added to the inertia. Plenty of people are sitting on cash, happy to earn 5% in the bank. But if you're a higher-rate taxpayer, you're pocketing closer to 2.5% – less than inflation – and over time, your 'safe' money is shrinking in real terms. Global Equities, by contrast, are up 11% over the past year – despite all the turmoil around tariffs. This hesitation isn't limited to financial investments either, we're seeing the same reluctance around property purchases. Entrepreneurs are delaying buying homes or commercial units in the hope that mortgage rates will fall or prices will soften. However, unless you have a crystal ball, trying to time the market is a game you're unlikely to win. If you've found a property that suits your needs and budget, and you can afford it, the best decision is to buy it. Your home is where you live, not a speculative asset to be perfectly timed. There's immense freedom in simply making a decision. It takes the weight off your mind and gives you back your mental bandwidth – something every founder or investor will recognise as valuable in its own right. Doing nothing might feel like the safe bet, but inaction can be far more damaging than a well-informed choice. And contrary to popular belief, you don't need to have all the answers today. What you do need is a plan. Even a basic plan creates structure, helps you map the road ahead, and protects you from making knee-jerk decisions driven by fear or headlines. Here's how to break free from the grip of decision paralysis: Zoom out: Focus on your long-term objectives, rather than tomorrow's headlines. What do you want your money to do for you over the next 10, 20, 30 years? Separate fact from fear: Emotions often drive poor decisions. If you find yourself saying "I'll just wait until…", ask whether that's a rational strategy or an emotional deflection. Get advice: A good financial planner will help you understand your goals, cut out the noise, and navigate complexity with clarity. Act with intent: Even small, deliberate steps can make a difference. Wealth isn't built from the sidelines. Entrepreneurs are used to taking calculated risks, but when it comes to managing post-exit wealth or personal finances, many find themselves out of their depth. A little knowledge can be a dangerous thing – and half-understanding the tax system, the economy, or the markets can lead to costly mistakes. That's why it's so important to talk to someone. Burying your head in the sand is not a wealth strategy. The economy will always feel volatile, but the people who do best are those who act with confidence and intention – no matter the noise. You don't need to get every decision right, but you do need to make a decision. Inaction is a choice, and often, it's the most expensive one of all.
Entrepreneur
4 days ago
- Business
- Entrepreneur
Only 48% of Founders Feel Confident About Their Taxes — Here's How to Join Them
Most founders feel tax season is a black box, but treating taxes as a year-round strategy instead of a once-a-year scramble can unlock cash for hiring, reduce financing costs and fuel smarter growth. Opinions expressed by Entrepreneur contributors are their own. Nearly three out of four founders admit they go into every filing season with gnawing doubt about whether they paid the right amount, overpaid or overlooked a key incentive. QuickBooks' 2025 Financial-Literacy survey shows that fewer than half of business owners (48%) feel confident they're paying taxes correctly — a confidence gap that scales to roughly seventy-plus percent who feel exposed in some way. Additionally, the share of owners ranking "taxes" as their single biggest problem jumped to 18%, the highest reading since November 2021, according to the NFIB's March 2025 Small Business Economic Trends report. It's reasonable to feel anxious if you wait until April to think about taxes. By then, key strategies like switching your business entity, timing bonus depreciation or funding a cash-balance plan are already out of reach. But the good news is, the same tax code that keeps you up at night can become a growth engine once you integrate it into every quarter's operating cadence. Related: 4 Tax Strategies Every High-Earning Entrepreneur Needs to Know Start your tax season in Q1 When my leadership team gathers during the first week of every quarter, we place tax projections on the same page as revenue, hiring and product plans. That one strategy has helped us realign every future decision from pricing to payroll around its true after-tax impact. For one, it gives the team cash clarity all year. Rolling 24-month models show exactly when quarterly estimates, R&D credits or PTET payments hit the bank. CFOs can stage inventory builds or ad pushes without cash-flow whiplash. Another benefit is that strategic windows stay open. If you want Section 179 to offset new equipment, plan the purchase while there is still time to place the order. If you need a new holding-company structure to capture foreign profits, get documents drafted before summer so state filings are live on January 1st of the following year. Use tax insights for better business decisions Once taxes move from a "report card" and start being a built-in part of your business plan, they directly shape the three growth levers founders care about most: Cash-funded hiring. Knowing the precise week a credit lands lets you schedule a senior engineer or enterprise rep in the same pay period, effectively letting the IRS subsidize the first month of payroll. Launch timing with margin in mind. One client planned to ship a new hardware SKU in September. Our forecast showed that delaying tooling expenses until October would push the bulk of deductible spend into the next fiscal year, inflating taxable income now and starving Q4 cash. We flipped the sequence: cap-ex first, launch in November. We were able to unlock six figures in year-end liquidity. Cheaper capital. Banks like certainty. When we refinanced an eight-figure line this winter, presenting lender-ready tax models alongside GAAP statements shaved 150 basis points (BPS) off the rate because underwriters trusted our free-cash-flow math. Actionable tax strategies and execution tips Some tax moves don't make splashy headlines but quietly swing six-figure outcomes for mid-market firms — if you catch them before the calendar locks. Start with an accountable plan for reimbursement. When you formalize how the company repays owners for business expenses, you move those costs from after-tax to pre-tax dollars and raise take-home pay without bumping salary. Put the plan in place before filing the return; with clean receipts, you can even back-date benefits to January 1st. Next, combine a 401(k) with a cash-balance pension. The pairing can shelter anywhere from $200,000 to $350,000 a year, but the paperwork must be signed by September 15th to claim the deduction in the current year. A timely pass-through entity tax (PTET) election is another overlooked win. In states that offer it, PTET sidesteps the $10,000 SALT cap and returns roughly 4-6% of qualified income — yet the advantage disappears if you miss the early-year election window or delay the quarterly estimates that follow. Lastly, never ignore revenue-recognition management. Adjusting contract terms or release dates to smooth income spikes keeps profits in lower brackets and steadies Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) multiples — an advantage that shows up the moment you start courting lenders or acquirers. Coordinate any ASC 606 tweaks with your product-launch calendar so compliance keeps pace with growth. Related: 7 Advanced Tax Strategies for the Self-Employed Partnership benefits and important notes on extensions A year-round CPA partnership is what turns this list into cash. Continuous check-ins surface mid-season law changes, keep mileage logs and cost-seg studies audit-ready and let your internal finance team focus on operations instead of parsing Congressional markup. While filing an extension can be smart if you're waiting on K-1s or still closing the books, remember that an extension delays paperwork, not payment. If you miss the original due date, you'll rack up penalties, interest and — if numbers look sloppy — heightened audit risk. Poor tax management also unnerves lenders and investors who comb your returns for red flags. Use extensions strategically, but pair them with accurate estimated payments and a living forecast so you never trade one stress for a bigger one. The shift to ongoing tax management Taxes remain the single largest controllable expense for most growth-stage companies. If you continue to ignore them until April, they will pull your cash out of the business. Build them into every quarter's sprint review so they actively drive your hiring initiatives, support funding launches and help reduce the cost of capital. The code is dense and, yes, specialist talent is scarce, but that complexity is your moat once you master it. Start each Q1 with a living forecast, insist that every strategic initiative carries a tax scenario, and partner with an advisor who sees beyond the return itself. Do that, and instead of bracing for tax season, you'll start using it as a tool to fund what's next. This will turn tax anxiety into a competitive edge and unlock growth that the IRS no longer gets to tax.
Entrepreneur
6 days ago
- Business
- Entrepreneur
How to Prepare Your Key Employees to Take Over Your Business
When there are more small business sellers than traditional buyers, your key employees may serve as a better alternative. Opinions expressed by Entrepreneur contributors are their own. It is well known that only 20% of small businesses that go to market sell, and the Silver Tsunami, that giant wave of baby boomer business owners who want to retire, makes the problem worse. Most of these businesses won't sell, and they will be shut down. Who is hurt if the company shuts down? The business owner can't access most of their net worth. The employees are out of a job. The community loses a major asset. Does the business need to be shut down? Consider this: The company has customers, revenues, trained staff, systems, channels of distribution and an infrastructure and ecosystem that it took years to develop. It's a shame to throw all that away! The traditional outside buyers are strategic buyers, financial buyers and lifestyle buyers. If there aren't enough buyers on the outside, what about looking on the inside? Related: Why an Increasing Number of Retiring Entrepreneurs Are Selling the Business to Their Employees Advantages of employee ownership Business owner: In addition to gaining access to most of their net worth, business owners gain control of the sales process. They do not have to meet and greet several potential buyers. When dealing with outside buyers, they read and analyze letters of intent from those who are interested, choose one and then struggle with an intense due diligence process led by the potential buyer's financial advisors. The whole sales process is much simpler when selling to key employees. Key employees: Key employees experience a major upgrade in their careers. Other employees: Other employees retain their jobs, and their "second family" remains intact. Community: The money that flows through the company remains in the community. That money helps support education, fire and police departments, road maintenance, etc. Also, suppliers, service workers and trusted advisors retain a client. Additional benefits: The chemistry between buyer and seller is established. Many times, a deal goes south between the seller and a stranger due to a lack of chemistry. The culture of the company remains the same. If a stranger buys the company, the culture will change in some fashion. If these cultural changes are too intense, many key employees may leave. Related: How to Transition to Employee Ownership Training your key employees Key employees know the company inside and out. They know the customers, the product and the systems, and the other employees like and respect them. However, there are functions that a good CEO performs, and the key employees are usually not involved, so they would need training. What are these functions? Strategic planning: This includes training in innovative growth strategies, planning in response to the competition and navigating changes in the market and the industry. Cash flow: It is imperative that the owner understands and implements cash flow management and forecasting. HR management: The owner should have a sense for evaluating the talent that is needed to perform specific tasks in the business. They also need to know when an employee is adversely affecting the company and what to do about it. Mindset training: The key employees will need to adjust their mindset from that of an employee to that of an owner. When they talk with the company's trusted advisors, they will need to have their owner hats on. Types of employee ownership Employee Stock Ownership Plan (ESOP): This is far and away the most popular form of employee ownership. Employee Ownership Trusts (EOTs): EOTs are intended to support employee ownership of companies and are becoming more common. Worker Cooperative: A business owned and controlled by its workers. All three of these types of employee ownership can work well with larger companies. They are complicated and very costly. They cost tens of thousands of dollars to set up and thousands to administer on a monthly basis. There are companies that specialize in setting up and administering the different types of employee ownership. Most require an EBITDA of $1 million or more before they even consider a company as a client. But what about the smaller companies that would like to consider employees in their succession plan? Selling the company to the key employees would not be a government-sponsored program. The deal would only include the business owner and the key employee(s). The owner would choose the key employees and their positions within the company going forward. Related: Selling Your Business to Your Employees Selecting key employees and moving forward The business owner should be very selective and careful in choosing their employees to own the company. They should have a good credit rating and be properly motivated to learn what is needed to be a business owner. You, as the business owner, should approach each key employee selected as a potential owner and, in passing, mention the possibility. After you have talked to each key employee individually, analyze their reactions in preparation to meet with them collectively. If they are interested, then you follow up with the process. The first thing you need to know is what your business is worth right now. You need to have a market valuation done. This will tell you how your company compares to similar companies in the same industry. Then, develop a plan to make the company effective, efficient and ready for scaling. Choose one key employee to be president while you remain the CEO, and train the president in all the functions listed above. The other key employees will be assigned management positions. When the company has grown and the cash flow is sufficient to support increased debt, create a plan to sell the company to the key employees.
Entrepreneur
26-05-2025
- Business
- Entrepreneur
5 Ancient Asian Values Every Entrepreneur Should Know
As more and more Asian businesses steal the limelight, it's high time that Western entrepreneurs learn some of the ideas and philosophies that guarantee their success and longevity. Opinions expressed by Entrepreneur contributors are their own. More and more Asian economies are racing to the top, as the International Monetary Fund's April outlook projects that India would soon surpass Japan's fourth place in the global economic order and join China and the U.S. in the world's top five spots. On a micro level, individual Asian mid-cap companies, according to an article by Citigroup, are quickly expanding beyond the global manufacturing bases of Japan and China, with their booming factories having a presence in India, Vietnam, Indonesia, Malaysia and Thailand. Additionally, Asian companies are adopting new technologies 8-12 years ahead of the West, according to Citi's 2023 report. This rapid growth in Asian businesses is driven by fast-paced innovation and high adaptability, but what truly lies at the heart of these dynamic companies is the fact that, across the board, they practice a business culture that encourages durability and longevity, which is characteristic of traditional and often ancient Eastern values. These unique values, found across the continent, contribute to the fact that many of the world's oldest, continuously operating companies are actually located in Asia. As the fourth generation heir of a business that is more than 100 years old in Hong Kong, I believe that learning about aspects of the culture that are practiced across Asia is beneficial for Western entrepreneurs. Here I've picked five take-home messages. Related: I'm the CEO of a Company Generating $1.7 Billion Annual Revenue. This Ancient Philosophy Is My Secret for Business and Leadership Success. 1. Balance the Yin and Yang using Daoism One of the most important business concepts in Asia comes from Daoist philosophy, a Chinese way of life that originated from the sixth century BCE. For entrepreneurs in particular, the concept of wu wei, which translates as "effortless action," is crucial as it teaches about agility and acting in harmony with the ebbs and flows of the universe. According to this concept, businesses should prioritize efficiency and effectiveness and know which tasks are urgent, instead of taking too much control over every aspect of a company's operations. This philosophy also emphasizes the importance of balancing opposite forces, the masculine Yang and the feminine Yin, so they can co-exist in a positive way. In practice, an example can look something like building a business on "masculine" traits such as competitiveness, unwavering focus and risk-taking, and balancing it with "feminine" traits such as introspection, sensitivity and care. Only possessing these traits is not enough, but entrepreneurs will have to learn the art of moving between one faction and another seamlessly, especially when facing challenging market conditions. 2. Practice patience instead of anger Patience is the virtue of success in many cultures, and this is no different in Asia. An article written for the Australian Institute of Company Directors shows that many successful Indian business leaders believe that using patience to react to a situation that would normally provoke anger is key to achieving progress. This belief is derived from the Bhagavad Gita, an ancient Indian text dating back to the second century BCE, which explains that when a negative event occurs, one must not be bewildered by delusion, which is a reaction that comes from anger. Instead, having a clear mind and controlling one's reaction to the event will ensure that well-reasoned actions are taken, which will ensure preservation instead of destruction. Patience will also mean that important lessons can be learned from adverse events, which are normally perceived to be "failures" in business. The Indian way of having a patient mindset is that every failure has the potential to be converted into success, with calm and reasoned thinking instead of reactive impulses that cloud our judgment. Related: In the Age of Instant, Here's Why Leaders Must Learn the Art of Patience 3. Understanding the Confucian art of giving face Many of China's flourishing businesses follow Confucian values, which originate from the country's way of life propagated from the sixth century BCE — which remains relevant today. This Chinese social code has also influenced businesses across Korea, Japan and Vietnam. Among the most important Confucian values practiced in Asian business ethics is the concept of giving face, otherwise known as mianzi. This is the belief that making someone look good, i.e., "giving face," is key to establishing harmonious relationships between parties you're doing business with. While protecting your own image is considered to be one of the highest ideals under this belief system, "giving face" to another is also equally as important, by carefully considering their thoughts and showing care. Mianzi is crucial to every business relationship out there, especially where clients and customers are involved, and is key to receiving support from others and achieving longevity. 4. Applying the Buddhist Law of Attraction Among the most visible principles practiced by Asian businesses is the Buddhist Law of Attraction, which says that our thoughts and intentions shape our experiences and reality. Arising from Buddhist philosophies founded by Siddharta Gautama Buddha in the fifth century BCE India, the Law of Attraction simply means that entrepreneurs should define their businesses carefully and thoughtfully. A company is seen as more than an organization or instrument set up to make money; instead, it is visualized as an agent that could deliver beneficial effects to the community in which it operates. This is something that my company, the Kowloon Motor Bus Company, especially believes in, since it is performing a crucial service to its customers rather than operating purely as a profit-driven business. If your purpose is clear, then success will follow, is what I've learned in my own experience as a business leader. Related: 5 Things I Learned About Business From an Asian Monastery 5. Learning how "to lift together" An important aspect of Indonesian and Malaysian business cultures is the concept of gotong royong, which translates as "to lift together," an ancient principle of communal work and collaboration within a community. This concept originated in the island of Java and has been known and practiced within the Malay Archipelago since the 117th century BCE. This concept is still practiced today and is a cultural value that creates important cohesion between business partnerships. For example, Indonesian startups have utilized the concept of gotong royong to create strategies where separate businesses come together for mutual benefit instead of competing alone within profitable industries.
Entrepreneur
23-05-2025
- Business
- Entrepreneur
How Saying 'Yes' to Everything Can Stall Your Growth
Learn how to say "no" with grace and strategy — protecting your team, staying true to your vision and preserving relationships while building a business that thrives with integrity. Opinions expressed by Entrepreneur contributors are their own. Entrepreneurs are known for being ambitious and driven, constantly scanning the horizon for ways to make their business stronger and more profitable. This eagerness to embrace every opportunity can help fuel growth and build crucial momentum, especially in a company's early stages. However, as businesses mature, the ability to strategically decline client requests becomes equally important. The reality is that not every client or project provides positive benefits for your business. Sometimes, clients create an unnecessary strain on your team or come with a high cost to maintain the relationship. In the most extreme cases, a bad contract or toxic client relationship can actually cause the business to lose money or drive away top talent. While disappointing clients and losing potential revenue may seem counterintuitive, it may actually make sense to say "no" to certain clients or opportunities. As a business owner, it's your responsibility to protect the business, even if it means turning down work. The goal is to say "no" in a way that protects the business while avoiding damaging your reputation or closing the door to future opportunities. Related: The Most Successful Entrepreneurs Know How to Say 'No.' Here's the One Exercise You Need to Learn This Skill. 1. Address resource or schedule challenges Managing resources requires a careful balance. As an entrepreneur, it's your job to make sure that you are using your resources to their full potential without overburdening the team. You'll likely experience situations where you have an amazing opportunity, but your team's schedule is already loaded with other commitments. Jumping directly to "no" might not be the best option. Take the time to explain to the client how accepting the new project could compromise the quality of your deliverables. Instead of simply saying "no," you can express what it would take to get the work done, such as offering a longer timeframe or outlining the associated costs with securing additional resources. With this approach, you not only communicate to the client that you're enthusiastic about working with them, but also that you honor the commitments that you make to your clients. 2. Maintain alignment with your strategic vision Every entrepreneur operates their business with a core strategic vision. From time to time, you might be asked to take on work that doesn't align with your mission. At this point, you have a choice to make — accept the work and benefit from the additional revenue or decline the project to keep the team focused on long-term objectives. While the first option might seem like a no-brainer, diluting the focus of your team could potentially sabotage your long-term strategy in exchange for a short-term win. When declining these types of projects, take the time to articulate why the project doesn't fit with your company's core focus. Reframing the decision around company strategy makes the rejection less personal, as you are rejecting the project scope and not the individual. Related: Stop Overworking Yourself Because You Say 'Yes' Too Often — Here's How to Harness the Power of a Simple 'No' 3. Setting firm boundaries with existing clients Saying "no" to existing clients can be a delicate conversation. However, it may be necessary to maintain a healthy working relationship. For example, when a client consistently requests out-of-scope work without being willing to discuss additional fees, you could be opening your business up to an unending precedent of scope creep. Or perhaps you have a client who demands round-the-clock access to the team. This could cause unnecessary stress and burnout, resulting in higher turnover. When addressing these situations, be sure to clearly state that you value their business and are happy to accommodate additional requests with adjustments to the budget or schedule since they fall outside the scope of the original agreement. Of course, this requires having clear agreements with your client in the first place. If you have well-documented requirements and quotes, it makes the conversation much easier. 4. Proactively say "no" One of the most effective ways to say "no" is by not having to say it in the first place. You can do this by setting expectations early in the relationship with your prospective clients. For example, if your firm has a minimum fee, specializes in a particular industry or only handles certain types of work, make this information readily available on your website or during initial consultations. This proactive transparency can act as a natural filter, helping you attract only the clients that are a good fit for your business and deterring those who aren't. Related: How to Say 'No' to Anyone Without Feeling Guilty 5. Give a supportive "no" Saying "no" doesn't have to be the end of the conversation. If you genuinely want to help, but the opportunity isn't right for your business at this time, offering referrals or alternate solutions can be a powerful way to maintain a strong relationship without a harsh rejection. By guiding the potential client to a solution, you demonstrate goodwill and leave the door open for future collaboration. Mastering the art of saying "no" is a critical skill for entrepreneurs who aspire to grow their business intentionally and with integrity. At the end of the day, every decision you make has to reinforce and align with your strategic vision. Too many steps down the wrong path can lead to stalled growth, damaged relationships and a poor reputation in the marketplace.
