S06.E28: Zoom Interiors, Sunscreen Mist, SynDaver Labs, You Kick Ass

[bilgistic]

People probably tell themselves that their nail appointments are a business expense because they need to look professional for the business. But I suspect that wouldn't actually fly as an excuse.

I'm fairly certain that was her excuse, but I'm pretty sure that thick, gaudy acrylic nails aren't very professional or business-like. ::shudder::

[Guest]

I remember a past episode had bobble heads with each of the Sharks' heads, and they were very lifelike and realistic.  I wonder how  that technology is different from this because these literally looked like Barbie heads with the mark on the neck and generic-looking faces (sorry, Skipper!)  They definitely need to work on the detail of the faces, but I like the concept.  

 

We had some bobbleheads made of our two founders.  I think they were around $100 each (each being both men on a base), if you bought like six.  Not cheap but they look really good-- worlds better than those action figures.  

 

I think Barbara was a little offended at hers.  It should be common knowledge that if you want to make a caricature you need to make the features larger and well-contrasted, not more gray and small like the features on these were.  The heads didn't even look big enough for the bodies, much less oversized to get the identity across.  

 

I'm convinced that when they show the special displays in Bed Bath & Beyond on the show, they are done solely for the promo shoot. There are no such real-life displays in my area stores, and you have to hunt for and/or ask employees where things from the show are.

My store actually had a huge Squatty display on a center pillar complete with a tv screen playing a video ad on loop.  

 

Good point about disbursements. When I hear "don't pay yourselves" I think it means literally don't pay yourselves anything, and then I wonder how they live. Now I see you're allowed to live on the profits if there are any, just not pay yourself a fixed salary? That makes sense.

(Though, if you are in a business where you need several months to get up and running, it still seems like it's not feasible without savings or help.)

It doesn't much matter if you call your pay an expense or a distribution.  The money is not going back into the business so it's the same economic effect to the company, though if your main goal is to "show a profit", a distribution might be better, but anyone viewing your financials isn't going to be fooled.  It's probably better to just call it an expense and then it reduces the company's tax burden.  Usually companies in start-up phase don't pay profits out to owners (though they do pay salaries to managers), they reinvest them to fund future growth.  Dividends/distributions would naturally occur later in the business cycle, when the company no longer has need of the capital and the investors can make a better return on other (growing) investments with that money. 

 

The Zoom decorating thing seemed kind of cool except that as others mentioned you can walk into virtually any furniture store and get the same advice for free.  Ikea and West Elm give you tons of pre-made room vignettes.  La-Z-Boy will actually send an interior designer to your house for free to consult with you and design your room(s), no minimum purchase required.  I used that once.  

[Amarsir]

It doesn't much matter if you call your pay an expense or a distribution.  The money is not going back into the business so it's the same economic effect to the company, though if your main goal is to "show a profit", a distribution might be better, but anyone viewing your financials isn't going to be fooled.  It's probably better to just call it an expense and then it reduces the company's tax burden.  Usually companies in start-up phase don't pay profits out to owners (though they do pay salaries to managers), they reinvest them to fund future growth.  Dividends/distributions would naturally occur later in the business cycle, when the company no longer has need of the capital and the investors can make a better return on other (growing) investments with that money. 

The point is not that it's a positive, but that if you have to take money out that's more accountable. Every investor would prefer the money stays in the business for growth. But in the case where you need money to live on, a disbursement will make potential investors more reassured that their money isn't going into your pocket.

 

As for tax consideration you're correct. But assuming that some money was used to start the business you can call it a "return of capital" instead of a dividend and thereby not pay any personal taxes until that's run down.