The main criticism that is given to our economic system (as a whole but especially referring to the small and medium enterprises) is to not have a sufficient capital base or, alternatively, of being under-capitalized.
But what is the importance of having a company capitalized and the negative consequences of not having, even though the entrepreneur in the possession of capital goods?
We will see below, looking fqre simple examples of the limits of idiocy, do a little clarity.
First, we clarify what it means, technically, have a company capitalized: It 's common knowledge that the value of a company is its ability to create income, that is to take profits but also on the equipment capital, arbitrarily Call them his "property", and a proper assessment can not 'consider ignoring the other. While for some there may be difficulty in distinguishing income from assets, we think of a dispossessed who earns € 2000 per month (income) and then the same person, same salary, but not three-owned apartments in the center of Monza, and who prefer to ask the hand of your daughter?
E 'is therefore clear that the company's heritage is a quantity that is built over time, building warehouses with mortgages, acquiring machinery on hire purchase so maybe' on. Unless, of course, the entrepreneur does not make a big investment of his own pocket for cash and immediately acquired an asset of the Company. Here are but 'the first catch: For years now we have been brainwashed about the convenience of a lease instead of a loan, and therefore, our companies have leased and not invested, as the redemption of the property was an ephemeral value on the balance sheet.
In practice, the suitor of our daughter has a good salary, and has three apartments for rent with the right of redemption. How do you see? It will have three apartments in the future, but meanwhile, now has to pay the rent.
was equally clear that, for tax purposes, the lease allowed to download increased costs, and then consequently pay less tax. For years, so our companies have packed their profits and therefore 'saved in taxes.
Back to our daughter: the young man that he is presenting three rent to pay, it has nothing payable plus earn much less than we expected and we can not understand how it could maintain (And not be retained) from our daughter. If, unfortunately, a marriage took place, he has lost his job and not take it anymore to pay the rent, he and our daughter would be under a bridge or, more likely, go home to be parents' house.
Got the idea?
Now we replace the parent must give consent to an official of a bank, and replace the young lieutenant with three no-rent and low wages with an entrepreneur with no property with the lease on his shoulders and a annual profit of a few thousand euro (not dozens), and replace the request for marriage to a request for a custody or a loan.
simplifying the concepts, the juice is clear, unfortunately.
Years of management aimed to maximize profits and minimize tax rebates, as well as act as a single horizon of the tax assessment has led our Company to be suitors unattractive for banks.
also one of the main terms of assessment of banks and investors is the relationship between capital (defined as assets) and operating payables, an index for SMEs is always difficult to interpret.
How to resolve the issue then?
Certainly not by paying more taxes and raising the profits, but surely adopting a behavioral strategy and management that not only has the IRS as a single source, but frames the Company in its complexity and completeness, then relations with other possible partners, such as prospective purchasers, prospective donors, prospective business partners. The strategy must be comprehensive and at 360 degrees, and if patience, you will pay a few euro more taxes, it will be worth much if we can get our heads held high in the bank or, in the face of a new member-elect, we can properly evaluate the share that we are selling.
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