In today’s business landscape, starting a new venture can be challenging on multiple fronts, but one concern often cited by budding entrepreneurs is less relevant than many believe: corporate taxes. The statement suggests that newly established businesses typically do not generate substantial profits for several years, making it unlikely they would owe significant tax payments during their early stages.
The deeper meaning behind this quote highlights the nuanced reality of starting a business. New companies are more concerned with survival and growth rather than paying hefty taxes. During the initial years, most startups focus on building customer bases, refining products or services, and establishing operational efficiency. This phase is often characterized by modest revenues and significant expenses related to development and marketing, which typically results in minimal taxable profits. The quote underscores that tax considerations are not a primary obstacle for new businesses but rather secondary concerns when compared to the myriad other challenges they face.
Glenn Kelman, the author of this insightful statement, is an experienced entrepreneur and executive. He has made significant contributions to the tech industry through his role as co-founder and CEO of Redfin, a real estate technology company that he helped transform into a publicly traded corporation. His firsthand experience in founding and growing businesses provides credibility to his observation about the realities faced by new companies.
