**United
      States**


**Securities
      and Exchange Commission**


**Washington,
      DC 20549**





**FORM
      10-QSB**





(Mark
      One)




þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT
      OF 1934





For
      the
      quarterly period ended September 30, 2008




 ̈ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT
      OF 1934





For
      the
      transition period from _________________ to _________________





QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE


SECURITIES
      EXCHANGE ACT OF 1934





Commission
      File Number **000-52184**





**THE
      SMALL BUSINESS COMPANY**


(Exact
      name of registrant as specified in its charter)





**Delaware**
            
            **55-0808106**(State
                or other jurisdiction of incorporation)
            
            (IRS
                Employer File Number)**674
                Via de La Valle, Suite 226, Solana Beach, CA**
            
            **92075**(Address
                of principal executive offices)
            
            (zip
                code)




**(858)
      481-5600**


(Registrant's
      telephone number, including area code)





Check
      whether the issuer: (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports); and (2) has been subject
      to such filing requirements for the past 90 days Yes þ No  ̈




**APPLICABLE
      ONLY TO CORPORATE ISSUERS**





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act)


Yes  ̈ No þ





As
      of
      September 30, 2008, 26,725,679 shares
      of our common stock were outstanding.








**PART
      1—FINANCIAL INFORMATION**




**Item
      1. Financial Statements.**





**The
      Small Business Company, Inc.**


(A
      Development Stage Company)





Balance
      Sheets





September
                30,
            
            June
                30,2008
            
            2008**ASSETS**Current
                AssetsCash
            
            $
            22,741
            
            $
            20,352Inventory
            
            
            17
            
            
            17Total
                Current Assets
            
            
            22,758
            
            
            20,369Long-Term
                AssetsPublication
                Rights
            
            
            25,000
            
            
            25,000Security
                Deposit
            
            
            299
            
            
            299Property
                and Equipment, net
            
            
            2,100
            
            
            2,488Total
                Long-Term Assets
            
            
            27,399
            
            
            27,787Total
                Assets
            
            $
            50,157
            
            $
            48,156**LIABILITIES
                AND STOCKHOLDERS' EQUITY**Current
                LiabilitiesAccounts
                Payable
            
            $
            29,147
            
            $
            41,734Total
                Current Liabilities
            
            
            29,147
            
            
            41,734Long-Term
                LiabilitiesNotes
                Payable
            
            
            193,734
            
            
            222,695Credit
                Cards Payable
            
            
            130,450
            
            
            82,630Convertible
                Debentures - Net
            
            
            271,164
            
            
            271,164Total
                Long Term Liabilities
            
            
            595,348
            
            
            576,489Total
                Liabilities
            
            
            624,495
            
            
            618,223Stockholders'
                EquityCommon
                Stock, authorized 500,000,000shares,
                par value $0.0001, issued andoutstanding
                on Sep 30, 2008 and June 30, 2008is
                26,725,679 and 25,725,679 respectively
            
            
            2,673
            
            
            2,573Additional
                Paid-in Capital
            
            
            1,448,863
            
            
            1,324,735Outstanding
                Options
            
            
            25,000
            
            
            25,000Deficit
                Accumulated during Development Stage
            
            
            (2,050,874
            )
            
            (1,922,375
            )Total
                Stockholders' Equity
            
            
            (574,338
            )
            
            (570,067
            )Total
                Liabilities and Stockholders' Equity
            
            $
            50,157
            
            $
            48,156The
                accompanying notes are an integral part of these
                statements










**The
      Small Business Company, Inc.**


(A
      Development Stage Company)




Statements
      of Operations





November
                26,Three
                Months Ended
            
            2002
                (Inception)September
                30,
            
            to
                September 30,2008
            
            2007
            
            2008IncomeConsulting
                Revenue
            
            $
            36
            
            $
            1,448
            
            $
            279,792Cost
                of Goods Sold
            
            
            —
            
            
            464
            
            
            467Gross
                Profit
            
            
            36
            
            
            984
            
            
            279,325Operating
                ExpensesGeneral
                and Administrative
            
            
            99,890
            
            
            163,659
            
            
            1,458,474Advertising
            
            
            9,390
            
            
            —
            
            
            106,636Consulting
                and Professional Fees
            
            
            18,867
            
            
            51,938
            
            
            522,330Depreciation
            
            
            388
            
            
            385
            
            
            6,129Total
                Expenses
            
            
            128,535
            
            
            215,982
            
            
            2,093,569Net
                Loss from Operations
            
            
            (128,499
            )
            
            (214,998
            )
            
            (1,814,244
            )Other
                ExpensesEmbedded
                Derivative Costs
            
            
            —
            
            
            —
            
            
            (236,630
            )Net
                Loss
            
            $
            (128,499
            )
            $
            (214,998
            )
            $
            (2,050,874
            )Basic
                and Diluted(Loss)
                per Share
            
            $
            (0.00
            )
            $
            (0.01
            )Weighted
                AverageNumber
                of Shares
            
            
            26,030,027
            
            
            16,045,334The
                accompanying notes are an integral part of these
                statements










**The
      Small Business Company, Inc.**


(A
      Development Stage Company)




Statement
      of Stockholders' Equity




From
      November 26, 2002 (Inception) to September 30, 2008


(Deficit)AccumulatedSubscriptions
              
              during
              
              TotalCommon
                  Stock
              
              Paid
                  in
              
              and
                  Options
              
              Development
              
              Equity/Shares
              
              
              
              Amount
              
              Capital
              
              Receivable
              
              Stage
              
              (Deficit)Common
                  Shares issued to Foundersfor
                  Services
              
              
              13,000,000
              
              
              
              
              $
              1,300
              
              $
              —
              
              $
              —
              
              $
              —
              
              $
              1,300Common
                  Shares issued for Cashbetween
                  6-Jan-03 and 16-Jan-03
              
              
              250,000
              
              
              
              
              
              25
              
              
              9,975
              
              
              
              
              
              
              
              
              10,000between
                  17-Jan-03 and1-May-03
              
              
              553,334
              
              
              
              
              
              55
              
              
              82,945
              
              
              
              
              
              
              
              
              83,000on
                  4-Mar-03
              
              
              100,000
              
              
              
              
              
              10
              
              
              9,990
              
              
              
              
              
              
              
              
              10,000Net
                  (Loss)
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (90,278
              )
              
              (90,278
              )**Balance,
                  June 30, 2003**
              
              
              13,903,334
              
              
              
              
              
              1,390
              
              
              102,910
              
              
              —
              
              
              (90,278
              )
              
              14,022Common
                  Shares issued for Cashbetween
                  30-Dec-03 and 5-Apr-04
              
              
              92,000
              
              
              
              
              
              9
              
              
              22,991
              
              
              
              
              
              
              
              
              23,000Common
                  Shares issued for Serviceson
                  2-Jan-04
              
              
              493,000
              
              
              
              
              
              49
              
              
              123,201
              
              
              
              
              
              
              
              
              123,250Net
                  (Loss)
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (225,883
              )
              
              (225,883
              )**Balance,
                  June 30, 2004**
              
              
              14,488,334
              
              
              
              
              
              1,448
              
              
              249,102
              
              
              —
              
              
              (316,161
              )
              
              (65,611
              )Common
                  Shares issued for Cashon
                  2-Aug-04
              
              
              100,000
              
              
              
              
              
              10
              
              
              24,990
              
              
              
              
              
              
              
              
              25,000on
                  20-Aug-04
              
              
              8,000
              
              
              
              
              
              1
              
              
              1,999
              
              
              
              
              
              
              
              
              2,000Common
                  Shares issued for Cashbetween
                  18-Nov-04 to 31-Dec 04
              
              
              1,364,000
              
              
              
              
              
              137
              
              
              77,363
              
              
              
              
              
              
              
              
              77,500Net
                  (Loss)
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (9,547
              )
              
              (9,547
              )**Balance,
                  June 30, 2005**
              
              
              15,960,334
              
              
              —
              
              
              1,596
              
              
              353,454
              
              
              —
              
              
              (325,708
              )
              
              29,342Cash
                  for Stock Subscriptions
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              75,000
              
              
              
              
              
              75,000Common
                  Shares issued for Cashon
                  23-Aug-05
              
              
              10,000
              
              
              
              
              
              1
              
              
              2,499
              
              
              
              
              
              
              
              
              2,500Common
                  Shares issued for Serviceon
                  15-Sep-05
              
              
              75,000
              
              
              
              
              
              8
              
              
              18,742
              
              
              
              
              
              
              
              
              18,750Net
                  (Loss)
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (104,884
              )
              
              (104,884
              )**Balance,
                  June 30, 2006**
              
              
              16,045,334
              
              
              
              
              
              1,605
              
              
              374,695
              
              
              75,000
              
              
              (430,592
              )
              
              20,708Cash
                  for Stock Subscriptionson
                  10-Aug-06
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              25,000
              
              
              
              
              
              25,000Common
                  Shares issued for Serviceon
                  21-Aug-2006
              
              
              100,000
              
              
              
              
              
              10
              
              
              24,990
              
              
              
              
              
              
              
              
              25,000Cash
                  for Stock Subscriptionson
                  02-Nov-06
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              50,000
              
              
              
              
              
              50,000Common
                  Shares issued for Cashon
                  19-Jan-2007
              
              
              40,000
              
              
              
              
              
              4
              
              
              9,996
              
              
              
              
              
              
              
              
              10,000Common
                  Shares issued for Cashon
                  12-Feb-2007
              
              
              180,000
              
              
              
              
              
              18
              
              
              44,982
              
              
              
              
              
              
              
              
              45,000Common
                  Shares issued for Consultingservices
                  on 20-Feb-2007
              
              
              300,000
              
              
              
              
              
              30
              
              
              74,970
              
              
              
              
              
              
              
              
              75,000Common
                  Shares issued for Serviceon
                  13-Mar-2007
              
              
              10,000
              
              
              
              
              
              1
              
              
              2,499
              
              
              
              
              
              
              
              
              2,500Common
                  Shares issued on prepaidsubscriptions
                  on 04-Apr-2007
              
              
              250,000
              
              
              
              
              
              25
              
              
              24,975
              
              
              (25,000
              )
              
              
              
              
              —Common
                  Shares issued for Serviceon
                  10-May-2007
              
              
              10,000
              
              
              
              
              
              1
              
              
              2,499
              
              
              
              
              
              
              
              
              2,500Common
                  Shares issued in paymentof
                  Interest on 14-Jun-2007
              
              
              187,500
              
              
              
              
              
              19
              
              
              46,856
              
              
              
              
              
              
              
              
              46,875Common
                  Shares issued on prepaidsubscriptions
                  on 27-Jun-2007
              
              
              300,000
              
              
              
              
              
              30
              
              
              24,970
              
              
              (25,000
              )
              
              
              
              
              —Common
                  Shares issued on prepaidsubscriptions
                  on 27-Jun-2007
              
              
              1,000,000
              
              
              
              
              
              100
              
              
              99,900
              
              
              (100,000
              )
              
              
              
              
              —Imbedded
                  derivative costs for issueof
                  stock warrants
              
              
              
              
              
              
              
              
              
              
              
              53,843
              
              
              
              
              
              
              
              
              53,843Net
                  (Loss)
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (677,372
              )
              
              (677,372
              )**Balance,
                  June 30, 2007**
              
              
              18,422,834
              
              
              —
              
              
              1,843
              
              
              785,175
              
              
              —
              
              
              (1,107,964
              )
              
              (320,946
              )Common
                  Shares issued for Serviceon
                  15-Aug-2007
              
              
              100,000
              
              
              
              
              
              10
              
              
              24,990
              
              
              
              
              
              
              
              
              25,000Common
                  Shares issued for Serviceon
                  24-Sep-07
              
              
              200,000
              
              
              
              
              
              20
              
              
              33,980
              
              
              
              
              
              
              
              
              34,000Common
                  Shares issued for acquisitionof
                  publication rights
              
              
              500,000
              
              
              
              
              
              50
              
              
              24,950
              
              
              
              
              
              
              
              
              25,000Common
                  Shares issued for DebtConversion
                  on 1-Apr-08
              
              
              833,350
              
              
              
              
              
              83
              
              
              16,584
              
              
              
              
              
              
              
              
              16,667Common
                  Shares issued for Serviceon
                  1-Apr-08
              
              
              250,000
              
              
              
              
              
              25
              
              
              24,975
              
              
              
              
              
              
              
              
              25,000Common
                  Shares issued for Serviceon
                  1-Apr-08
              
              
              450,000
              
              
              
              
              
              45
              
              
              26,955
              
              
              
              
              
              
              
              
              27,000Common
                  Shares issued for Serviceon
                  1-Apr-08
              
              
              150,000
              
              
              
              
              
              15
              
              
              2,235
              
              
              
              
              
              
              
              
              2,250Common
                  Shares issued for Serviceon
                  1-Apr-08
              
              
              250,000
              
              
              
              
              
              25
              
              
              49,975
              
              
              
              
              
              
              
              
              50,000Prepaid
                  Expense-Stock Related
              
              
              
              
              
              
              
              
              
              
              
              (50,000
              )
              
              
              
              
              
              
              
              (50,000
              )Common
                  Shares issued for Serviceon
                  1-Apr-08
              
              
              250,000
              
              
              
              
              
              25
              
              
              24,975
              
              
              
              
              
              
              
              
              25,000Common
                  Shares issued for Serviceon
                  17-Apr-08
              
              
              500,000
              
              
              
              
              
              50
              
              
              54,950
              
              
              
              
              
              
              
              
              55,000Common
                  Shares issued for Serviceon
                  21-Apr-08
              
              
              27,828
              
              
              
              
              
              3
              
              
              1,806
              
              
              
              
              
              
              
              
              1,809Common
                  Shares issued for Serviceon
                  21-Apr-08
              
              
              500,000
              
              
              
              
              
              50
              
              
              59,950
              
              
              
              
              
              
              
              
              60,000Common
                  Shares issued for Cashon
                  30-Apr-08
              
              
              416,667
              
              
              
              
              
              42
              
              
              24,958
              
              
              
              
              
              
              
              
              25,000Common
                  Shares issued for ServiceLoan
                  on 3-Jun-08
              
              
              50,000
              
              
              
              
              
              5
              
              
              7,995
              
              
              
              
              
              
              
              
              8,000Common
                  Shares issued for Serviceon
                  17-Jun-08
              
              
              225,000
              
              
              
              
              
              22
              
              
              22,478
              
              
              
              
              
              
              
              
              22,500Common
                  Shares issued in Exerciseof
                  Warrants on 27-Jun-08
              
              
              200,000
              
              
              
              
              
              20
              
              
              29,980
              
              
              
              
              
              
              
              
              30,000Common
                  Shares issued for PrepaidExpenses
                  on 30-Jun-08
              
              
              400,000
              
              
              
              
              
              40
              
              
              59,960
              
              
              
              
              
              
              
              
              60,000Prepaid
                  Expense-Stock Related
              
              
              
              
              
              
              
              
              
              
              
              (60,000
              )
              
              
              
              
              
              
              
              (60,000
              )Common
                  Shares issued for DebtConversion
                  on 30-Jun-08
              
              
              2,000,000
              
              
              
              
              
              200
              
              
              39,800
              
              
              
              
              
              
              
              
              40,000Embedded
                  Interest Expense forConvertible
                  Debt
              
              
              
              
              
              
              
              
              
              
              
              80,625
              
              
              
              
              
              
              
              
              80,625Embedded
                  derivative costs for issueConvertible
                  Debt
              
              
              
              
              
              
              
              
              
              
              
              28,836
              
              
              
              
              
              
              
              
              28,836Outstanding
                  Options
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              25,000
              
              
              
              
              
              25,000Amortization
                  of Prepaid Expense -Stock
                  Related
              
              
              
              
              
              
              
              
              
              
              
              8,603
              
              
              
              
              
              
              
              
              8,603Net
                  (Loss)
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (814,411
              )
              
              (814,411
              )**Balance,
                  June 30, 2008**
              
              
              25,725,679
              
              $
              —
              
              
              2,573
              
              
              1,324,735
              
              
              25,000
              
              
              (1,922,375
              )
              
              (570,067
              )Common
                  Shares issued for Cashon
                  2-Sep-08
              
              
              1,000,000
              
              
              
              
              
              100
              
              
              49,900
              
              
              
              
              
              
              
              
              50,000Contributed
                  Captial
              
              
              
              
              
              
              
              
              
              
              
              74,228
              
              
              
              
              
              
              
              
              74,228Net
                  (Loss)
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (128,499
              )
              
              (128,499
              )**Balance,
                  June 30, 2008**
              
              
              26,725,679
              
              $
              —
              
              $
              2,673
              
              $
              1,448,863
              
              $
              25,000
              
              $
              (2,050,874
              )
              $
              (574,338
              )


The
        accompanying notes are an integral part of these statements











The
      Small
      Business Company


(A
      Development Stage Company)





STATEMENTS
      OF CASH FLOWS





November
                26,Three
                Months Ended
            
            2002
                (Inception)September
                30,
            
            to
                September 30,2008
            
            2007
            
            2008Operating
                activitiesNet
                (Loss)
            
            $
            (128,499
            )
            $
            (214,998
            )
            $
            (2,050,874
            )Adjustments
                to reconcile Net (Loss) to cash:Common
                Stock issued for Services
            
            
            
            
            
            59,000
            
            
            533,859Common
                Stock issued for Debt Conversion
            
            
            —
            
            
            —
            
            
            133,542Embedded
                Interest Expense for Debt
            
            
            —
            
            
            —
            
            
            80,625Embedded
                Derivative Warrant Issue Expense
            
            
            
            
            
            11,803
            
            
            53,843Amortization
                of Prepaid Expense-Stock Related
            
            
            —
            
            
            
            
            
            8,603Depreciation
            
            
            388
            
            
            385
            
            
            5,746Changes
                in Assets and Liabilities
            
            
            
            
            
            
            
            
            —(Increase)/decrease
                in Accounts Receivable
            
            
            —
            
            
            (2,146
            )
            
            —(Increase)/decrease
                in Inventory
            
            
            —
            
            
            —
            
            
            (17
            )(Increase)/decrease
                in Security Deposits
            
            
            —
            
            
            —
            
            
            (299
            )Increase/(decrease)
                in Accounts Payable
            
            
            (12,587
            )
            
            (15,779
            )
            
            29,147Net
                cash (used) by operating activities
            
            
            (140,698
            )
            
            (161,735
            )
            
            (1,205,825
            )Investment
                activitiesPurchase
                of Equipment
            
            
            —
            
            
            —
            
            
            (7,846
            )Net
                cash provided by investment activities
            
            
            —
            
            
            —
            
            
            (7,846
            )Financing
                activitiesProceeds
                from Notes Payable
            
            
            (28,961
            )
            
            (17,663
            )
            
            193,734Proceeds
                from Short Term Notes
            
            
            47,820
            
            
            13,498
            
            
            130,450Proceeds
                from Convertible Debentures
            
            
            —
            
            
            150,000
            
            
            300,000Proceeds
                from Subscriptions Receivable
            
            
            —
            
            
            —
            
            
            25,000Contributed
                Capital
            
            
            74,228
            
            
            —
            
            
            74,228Proceeds
                from sale of Common Stock
            
            
            50,000
            
            
            —
            
            
            513,000Net
                cash provided by financing activities
            
            
            143,087
            
            
            145,835
            
            
            1,236,412Net
                (decrease) in cash
            
            
            2,389
            
            
            (15,900
            )
            
            22,741Cash
                and equivalents - beginning
            
            
            20,352
            
            
            16,347
            
            
            —Cash
                and equivalents - ending
            
            $
            22,741
            
            $
            447
            
            $
            22,741Cash
                Paid For:Interest
            
            $
            6,826
            
            $
            7,115
            
            $
            189,613Income
                Taxes
            
            $
            —
            
            $
            —
            
            $
            —Non-cash
                Activities:Common
                Stock issued for Assets
            
            $
            —
            
            $
            —
            
            $
            25,000Common
                Stock issued for Services
            
            $
            —
            
            $
            59,000
            
            $
            533,859Common
                Stock issued for Debt Conversion
            
            $
            —
            
            $
            —
            
            $
            133,542Common
                Stock issued for Prepaid Expense
            
            $
            —
            
            $
            —
            
            $
            110,000Imbedded
                Derivative Warrant Issue Expense
            
            $
            —
            
            $
            11,803
            
            $
            134,468The
                accompanying notes are an integral part of these
                statements










**The
      Small Business Company, Inc.**


(A
      Development Stage Company)





**NOTES
      TO UNAUDITED FINANCIAL STATEMENTS**


**(September
      30, 2008 and 2007)**





**NOTE
      1.**  **GENERAL
      ORGANIZATION AND BUSINESS**





The
      Small
      Business Company, Inc. (“Company”) was incorporated in Delaware on November 26,
      2002. The Company, based in Solana Beach, California began business as Optibiz,
      LLC, a California limited liability company and then converted to a Delaware
      corporation on November 26, 2002.





The
      Company is in its development stage even though it has produced limited revenues
      in proof-of-concept beta testing and business development consulting services.
      The company develops, packages and will market business improvement solutions
      for small business owners in the form of books, CD’s, and Business Coaching. The
      company will market these products through mixed media including national cable
      TV commercials.





**NOTE
      2.**  **RESTATED
      FINANCIALS**





During
      the year ended June 30, 2006, the Company erroneously recorded $75,000 as a
      liability entitled Convertible Notes Payable. In substance the note instrument
      was actually a prepayment for a deferred issue of 1,320,000 of shares of stock.
      There is no provision for interest or any repayment option other than the
      issuance of stock.





The
      Company’s financial statements were revised to eliminate the payable and record
      a contra Subscriptions Receivable resulting in a $75,000 increase in equity,
      which will be written to the common stock and additional, paid in capital upon
      issue of the stock.





The
      issue
      of stock has been recorded as of June 27, 2007.





**NOTE
      3.**  **SUMMARY
      OF SIGNIFICANT ACCOUNT POLICIES**





Accounting
      Basis





The
      statements were prepared following generally accepted accounting principles
      of
      the United States of America consistently applied. The Company uses a June
      30
      fiscal year end.





Cash
      and
      Cash Equivalents





Cash
      and
      cash equivalents include all short-term liquid investments that are readily
      convertible to know amounts of cash and have original maturities of three months
      or less. As of June 30, 2006 there were no cash equivalents.





Accounts
      Receivable





The
      Company analyzes current accounts receivable for an allowance for doubtful
      accounts based on historical bad debt, customer credit-worthiness, the current
      business environment and historical experience with the customer. The allowance
      includes specific reserves for accounts where collection is deemed to be no
      longer probable.





Advertising
      Costs




Advertising
      Costs are expensed as incurred.


September
                  30,
              
              
              2008
              
              
              2007Advertising
                  Costs
              
              $
              9,390
              
              $
              0.00


Use
      of
      Estimates





The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States of America requires management to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and disclosure of contingent assets and liabilities at the date
      of
      the financial statements and the reported amounts of revenue and expenses during
      the reporting period. Actual results could differ from those
      estimates.





Equipment





Equipment
      is stated at cost. Depreciation is computed using the straight-line method
      over
      their estimated useful lives, which for computer equipment is three years.
      Maintenance and repairs are charged to expense as incurred. Fixed assets consist
      of the following


September
                    30,
                  2008
              
              June
                    30
                  2008Equipment
              
              $
              7,846
              
              $
              7,846Less
                  Accumulated Depreciation
              
              
              (5,746
              )
              
              (5,358
              )Equipment,
                  net
              
              $
              2,100
              
              $
              2,488





Publication
      Rights





On
      March
      14, 2008 the Company issued 500,000 common shares to acquire the marketing
      and
      publication rights to a book. The fair value of the stock issued on the date
      of
      agreement was $0.05 per share, accordingly the rights are recorded at
      $25,000.










Revenue
      Recognition





Revenues
      from services are recognized when there is persuasive evidence of an
      arrangement, the fee is fixed or determinable, services have been rendered,
      payment has been contractually earned and it is reasonably assured that the
      related receivable or unbilled revenue is collectable.





Income
      Taxes





The
      provision for income taxes is the total of the current taxes payable and the
      net
      of the change in the deferred income taxes. Provision is made for the deferred
      income taxes where differences exist between the period in which transactions
      affect current taxable income and the period in which they enter into the
      determination of net income in the financial statements.





Earnings
      Per Share





Basic
      earnings per share are computed by dividing net income by the average number
      of
      common shares outstanding during the period. Diluted earnings per share takes
      into consideration the potentially dilutive effect of common stock equivalents,
      such as outstanding stock options and warrants, which if exercised or converted
      into common stock would then share in the earnings of the Company. In computing
      diluted earnings per share, the Company utilizes the treasury stock method
      and
      anti-dilutive securities are excluded.





Outstanding
      options and warrants are considered anti-dilutive.





Stock
      Based Compensation





The
      Company accounts for its stock based compensation based upon provisions in
      SFAS
      No. 123, *Accounting
      for Stock-Based Compensation* .
      In this
      statement stock based compensation is divided into two general categories,
      based
      upon who the stock receiver is, namely: employees/directors and
      non-employees/directors. The employees/directors category is further divided
      based upon the particular stock issuance plan, namely compensatory and
      non-compensatory. The employee/directors non-compensatory securities are
      recorded at the sales price when the stock is sold. The compensatory stock
      is
      calculated and recorded at the securities’ fair value at the time the stock is
      given. SFAS 123 also provides that stock compensation paid to non-employees
      be
      recorded with a value which is based upon the fair value of the services
      rendered or the value of the stock given, whichever is more reliable. The
      Company has selected to utilize the fair value of the stock issued as the
      measure of the value of services obtained.




**NOTE
      4.**  **GOING
      CONCERN**





The
      accompanying financial statements have been prepared assuming that the Company
      will continue as a going concern, which contemplates the realization of assets
      and the liquidation of liabilities in the normal course of business. The Company
      is in its development stage and has incurred net losses $2,050,874 as of
      September 30, 2008 . This
      condition creates an uncertainty as to the Company’s ability to continue as a
      going concern. Management is trying to raise additional capital through sales
      of
      common stock as well as seeking financing from third parties. The financial
      statements do not include any adjustments that might be necessary if the Company
      is unable to continue as a going concern.










Management
      has produced limited revenues through business consulting and beta testing
      of
      its products. The company has authored four books and four instructional CD’s
      for small business owners and is testing its business coaching platform. The
      Company will begin full-scale marketing of its products and services during the current fiscal
      year
      as it continues to execute its business plan.





Management
      plans to obtain $200,000 in each of three growth phases. Funds are expected
      from
      revenues generated by the sale of products and services, the sale of stock
      and
      the issuance of debt instruments. The first phase to begin upon becoming a
      publicly traded company includes funding to publish, print and market our book
      titles; re-format and re-program our master CD title, and the publication,
      packaging and marketing of our master CD.





The
      second phase to begin ninety days after phase one funding includes money for
      additional staff; the final deployment of our e-commerce website; publication,
      packaging and marketing of additional CD’s and securing additional inventory of
      books.





The
      third
      phase to begin sixty days after phase two funding includes money to expand
      marketing efforts; move corporate headquarters to a larger facility; hire
      additional staff; and begin creating additional books and CDs.





The
      Company expects to generate significant revenues from the marketing of its
      products and services. If additional funding is not forthcoming implementation
      of the expansion phases will be delayed and the Company will implement its
      plan
      to minimize overhead by enforcing the employment agreements with its founders
      to
      pay them only what the Company can afford.




**NOTE
      5.**  **COMMITMENTS,
      CONTINGENCIES AND RELATED PARTIES**





Employment
      Agreements





On
      March
      14, 2008 the Company replaced its CEO and accepted an employment agreement
      with
      a new officer and continued the agreement with its current COO. For each
      officer, the agreement provides an annual salary of up to $120,000 per year
      and
      a $500 monthly allowance for medical and dental insurance. However, the
      agreement specifically limits the salary to the current financial ability of
      the
      Company to pay the salary and provides for no back payment of unpaid amounts.
      Reported expenses reflect actual salaries in accordance with these
      agreements.





The
      March
      14, 2008 employment agreement with the new officer included the issue of 500,000
      common share options with a fair value of $0.05 per share.









Lease
      Commitments





The
      Company leases approximately 1,000 square feet of office space in Solana Beach,
      California, from an unaffiliated third party, for an annual rental of
      approximately $30,000. Rent expense for the years ended June 30, 2008 and 2007
      was $30,000 each and projection for next five years is the same although Company
      growth may require more space and a higher lease payment.





**NOTE
      6.**  **CONVERTIBLE
      DEBENTURES**





On
      February 16, 2007 the Company filed its intent to issue a minimum of three
      and a
      maximum of fifteen units of convertible debentures. Each unit consists of a
      $25,000 note convertible to common stock at the rate of $0.20 per share and
      a
      three year warrant to purchase 25,000 common shares at $0.10 per share. The
      debentures carry a 10% interest rate payable quarterly from the date of issue
      with the principle due December 31, 2009.





The
      debentures and accumulated interest may be converted at anytime up to maturity
      for common stock at the rate of $0.20 per share. The Company can redeem the
      debentures after December 31, 2007 at 105% of the outstanding principle balance
      and with payment of accrued interest to the redemption date. The warrants expire
      three years after issue and may be exercised at any time commencing six months
      after final sale.





On
      April
      1, 2007, The Board of Directors of the Company authorized an increase (from
      $375,000 to $750,000) in the aggregate principal amount of Debentures which
      may
      be sold and issued to investors. Accordingly, the maximum number of Units
      offered for sale ("Maximum Offering") has been increased from 15 Units to 30
      Units.




During
      the fiscal year ended June 30, 2008 the Company sold an additional six
      convertible debenture units for $150,000 with an aggregate total of $300,000
      and
      recorded $80,625 total embedded interest expense and $17,023 embedded derivative
      cost associated with the issue of 300,000 warrants associated with the
      debentures. The recorded calculation was made using the Black-Scholes pricing
      model using the following variables (1) 4.5% to 4.9% risk-free interest rate,
      (2) 2 to 2.8 years to maturity, (3) expected volatility of 2.5%, (4) zero
      expected dividends, and (5) a strike price of $.20.




**NOTE
      7.**  **OPTIONS
      AND WARRANTS**





Options





The
      Company granted 500,000 common stock options as part of the employment agreement
      with the new officer. The details of the option agreement are still being
      negotiated as far as exercise price, vesting and other exercise consideration.
      Accordingly, the company recorded the value of the options at the current market
      price of $0.05 per share or $25,000.










Warrants





The
      Company accounts for non-cash stock-based compensation issued to non-employees
      in accordance with the provisions of SFAS No. 123 and EITF No. 96-18, Accounting
      for Equity Investments That are issued to Non-Employees for Acquiring, or in
      Conjunction with Selling Goods or Services. Common stock issued to non-employees
      and consultants is based upon the value of the services received or the quoted
      market price, whichever value is more readily determinable.





The
      Company has the following warrants outstanding as of September 30, 2008 and
      has
      recorded the cost associated with the issue of the warrants using the
      Black-Sholes option pricing model.





Reconciliation
      of Warrant Activity:





**Warrants**Warrants
                Outstandingat
                June 30, 2006
            
            
            200,000Plus:
                Warrants Granted
            
            
            1,350,000Less:
                Warrants Exercised
            
            
            —Less:
                Warrants Expired
            
            
            (92,000
            )Warrants
                Outstandingat
                June 30, 2007
            
            
            1,458,000Plus:
                Warrants Granted
            
            
            1,950,000Less:
                Warrants Exercised
            
            
            (200,000
            )Less:
                Warrants Expired
            
            
            (808,000
            )Warrants
                Outstandingat
                June 30, 2008
            
            
            2,400,000Plus:
                Warrants Granted
            
            
            1,000,000Less:
                Warrants Exercised
            
            
            —Less:
                Warrants Expired
            
            
            —Warrants
                Outstandingat
                September 30,2008
            
            
            3,400,000









Outstanding
      Warrants as of June 30, 2008 :





**Outstanding
                Warrants as of September 30, 2008**Issue
            
            Expiration
            
            Exercise
            
            ShareDate
            
            Date
            
            Price
            
            Warrants11/1/2006
            
            
            11/1/2009
            
            $
            0.25
            
            
            500,0006/30/2007
            
            
            6/30/2010
            
            $
            0.20
            
            
            150,0007/21/2007
            
            
            7/21/2012
            
            $
            0.20
            
            
            150,0003/31/2008
            
            
            3/31/2011
            
            $
            0.15
            
            
            800,0004/17/2008
            
            
            4/17/2011
            
            $
            0.30
            
            
            250,0004/21/2008
            
            
            4/21/2011
            
            $
            0.30
            
            
            250,0005/28/2008
            
            
            5/28/2011
            
            $
            0.10
            
            
            300,0009/2/2008
            
            
            9/2/2011
            
            $
            0.10
            
            
            1,000,000Total
            
            
            
            
            
            
            
            
            3,400,000





Black
      Sholes Variables:





During
            
            DuringBlack
                Sholes
            
            Year
                Ended
            
            Year
                EndedVariables
            
            30-Jun-2007
            
            30-Jun-2008Exercise
                Price
            
            $0.075
                -$ 0.25
            
            $0.20
                -$ 0.25Risk
                Free Rate
            
            3.72%
                - 4.95%
            
            1.33%
                - 4.9%Strike
                Price
            
            $0.18
                - $0.23
            
            $0.09
                -$ 0.20Volatility
            
            111.331896%
                - 126.713325%
            
            111.331896%
                - 441.4%




**NOTE
      8.**  **STOCKHOLDERS’
      EQUITY**





Common
      Stock





The
      Small
      Business Company, Inc. (“Company”) was incorporated in Delaware on November 26,
      2002. The Company, based in San Diego, California, develops packages
      and markets business improvement solutions for small business owners. The
      Company began business as Optibiz, LLC, a California limited liability company
      and then converted to a Delaware corporation on November 26, 2002.





The
      Company is authorized 500,000,000 common shares with a $0.0001 par
      value.





On
      November 26, 2002, 13,000,000 common shares were issued to the founders of
      the
      Company for services valued at $1,300.





During
      the period from inception through June 30, 2003, 903,334 common shares were
      issued in private placements for $103,000 cash.





During
      the year ended June 30, 2004, 92,000 common shares were issued at $0.25 per
      share or $23,000 cash and 493,000 common shares were issued for services at
      $0.25 per share or $123,250. Services were valued at the price per share stock
      was sold in our private placement.










During
      the year ended June 30, 2005 1,364,000 common shares were issued for cash at
      $0.568 per share or $77,500. Additionally, 108,000 common shares were issued
      at
      $0.25 per share or $27,000 cash.





During
      the year ended June 30, 2006 75,000 common shares were issued at $0.25 per
      share
      or $18,750 of services rendered and 10,000 common shares were issued at $0.25
      per share or $2,500 cash and $75,000 cash was received in prepayment of
      subscription agreements for 1,320,000 common shares to be issued at $0.0568
      per
      share no later than May 31, 2007.





On
      August
      10, 2006 the Company received $25,000 prepayment on subscription agreements
      for
      300,000 common shares to be issued at $0.082 per share no later than August
      10,
      2007.





On
      August
      21, 2006 the Company issued 100,000 common shares at $0.25 per share for
      services of $25,000.





On
      November 2, 2006 the Company received $50,000 prepayment on a subscription
      agreement for 500,000 common shares to be issued at $0.10 per share no later
      than November 1, 2007.





On
      January 20, 2007 the Company issued 40,000 common shares at $0.25 per share
      for
      $10,000 cash.





On
      February 12, 2007 the Company issued 180,000 common shares at $0.25 per share
      for $55,000 cash.





On
      February 20, 2007 the Company issued 300,000 common shares at $0.25 per share
      for consulting services valued at $75,000.





On
      March
      13, 2007 the Company issued 10,000 common shares at $0.25 per share for services
      valued at $2,500.





On
      April
      4, 2007 the Company issued 250,000 common shares at $0.10 per share for deferred
      issue of prepaid subscription received in the amount of $25,000.





On
      May
      10, 2007 the Company issued 10,000 common shares at $0.25 per share for services
      valued at $2,500.





On
      June
      14, 2007 the Company issued 187,500 common shares at $0.25 per share in payment
      of accrued interest in the amount of $46,856.





On
      June
      27, 2007 the Company issued 300,000 common shares at $0.082 per share for
      deferred issue of prepaid subscription received in the amount of
      $25,000.





On
      June
      27, 2007 the Company issued 1,000,000 common shares at $0.10 per share for
      deferred issue of prepaid subscription received in the amount of
      $100,000.










On
      August
      15, 2007 the Company issued 100,000 common shares at $0.25 per share for
      services valued at $25,000.





On
      September 24, 2007 the Company issued 200,000 common shares at $0.17 per share
      for services valued at $34,000.





On
      April
      1, 2008 the Company issued 833,350 common shares at $0.20 per share for
      conversion of $16,667 in accounts payable.





On
      April
      1, 2008 the Company issued 250,000 common shares under an S-8 registration
      at
      $0.10 per share for conversion of $25,000 in accounts payable.





On
      April
      1, 2008 the Company issued 450,000 common shares at $0.06 per share for services
      valued at $27,000.





On
      April
      1, 2008 the Company issued 150,000 common shares at $0.15 per share for
      promotional services valued at $2,250.





On
      April
      1, 2008 the Company issued 250,000 restricted common shares at $0.20 per share
      and 250,000 S-8 registered common shares at $0.10 for legal services valued
      at
      $75,000.





On
      April
      17, 2008 the Company issued 200,000 restricted common shares and 300,000 S-8
      registered common shares at $0.11 per share for consulting services valued
      at
      $55,000.





On
      April
      21, 2008 the Company issued 27,828 common shares at $0.065 per share for
      consulting Services
      valued at $1,809.





On
      April
      21, 2008 the Company issued 200,000 restricted common shares and 300,000 S-8
      registered common shares at $0.12 per share for consulting services valued
      at
      $60,000.





On
      April
      30, 2008 the Company issued 416,667 common shares at $0.06 per share for $25,000
      cash.





On
      June
      3, 2008 the Company issued 50,000 common shares at $0.16 per share valued at
      $8,000 for incentive to make a loan to the company.





On
      June
      17, 2008 the Company issued 25,000 restricted common shares and 200,000 S-8
      registered common shares at $0.10 per share for services valued at
      $22,500.





On
      June
      27, 2008 the Company issued 200,000 common shares at $0.15 per share for
      exercise of 200,000 warrants in conversion of $30,000 debt.





On
      June
      30, 2008 the Company issued 400,000 S-8 registered common shares for prepaid
      services valued at $60,000.





On
      June
      30, 2008 the Company issued 2,000,000 common shares at $0.20 per share for
      conversion of $40,000 debt.





On
      September 2, 2008 the Company issued 1,000,000 common shares and 1,000,000
      three
      year warrants exercisable at $0.10 per share at $0.05 per share for $50,000
      cash.





Prepaid
      Expense - Stock Related





On
      April
      1, 2008 the Company issued 250,000 S-8 registered common shares at $0.20 per
      share for prepaid legal services and on June 30, 2008 the Company issued 400,000
      S-8 registered common shares for prepaid advertising valued at $60,000. The
      Company has amortized amounts expenses in the current period.





Sept
                30,
            
            Sept
                30,2008
            
            2007Prepaid
                Legal
            
            $
            50,000
            
            $
            —Prepaid
                Advertising
            
            
            60,000
            
            
            —Subtotal
            
            
            110,000
            
            
            —Less:Amortization
            
            
            8,603
            
            
            —Net
                Prepaid Expense Stock Related
            
            $
            101,397
            
            $
            —




**NOTE
      9.**  **PROVISION
      FOR INCOME TAXES**





The
      Company provides for income taxes under Statement of Financial Accounting
      Standards NO. 109, Accounting for Income Taxes. SFAS No. 109 requires the use
      of
      an asset and liability approach in accounting for income taxes. Deferred tax
      assets and liabilities are recorded based on the differences between the
      financial statement and tax bases of assets and liabilities and the tax rates
      in
      effect when these differences are expected to reverse.





SFAS
      No.
      109 requires the reduction of deferred tax assets by a valuation allowance
      if,
      based on the weight of available evidence, it is more likely than not that
      some
      or all of the deferred tax assets will not be realized. In the Company’s
      opinion, it is uncertain whether they will generate sufficient taxable income
      in
      the future to fully utilize the net deferred tax asset. Accordingly, a valuation
      allowance equal to the deferred tax asset has been recorded. The total deferred
      tax asset is $451,192, which is calculated by multiplying a 22% estimated tax
      rate by the items making up the deferred tax account, the estimated NOL through
      June 30, 2008 of $2,050,874. The total valuation allowance is a comparable
      $451,192.





The
      provision for income taxes is comprised of the net changes in deferred taxes
      less the valuation account plus the current taxes payable as shown in the chart
      below for the years ended June 30, 2007 and 2006.












June
                  30,
              
              2008
              
              2007Deferred
                  Tax Asset
              
              $
              198,714
              
              $
              149,022Less:
                  Valuation Allowance
              
              
              (198,714
              )
              
              (149,022
              )Net
                  Current Deferred Tax Asset
              
              $
              0
              
              $
              0





Below
      is
      a chart showing the federal net operating losses and the years in which they
      will expire:


Year
              
              
              
              Amount
              
              Expiration2003
              
              
              
              
              $
              90,278
              
              
              20232004
              
              
              
              
              
              225,883
              
              
              20242005
              
              
              
              
              
              9,547
              
              
              20252006
              
              
              
              
              
              104,884
              
              
              20262007
              
              
              
              
              
              677,372
              
              
              20272008
              
              
              
              
              
              903,247
              
              
              2028Three
                  Months FY 2009
              
              
              
              
              
              128,499
              
              
              2029Total
                  NOL
              
              
              
              
              
              $2,050,874
 
 **NOTE
        10.**  **THE EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS**





Below
      is
      a listing of the most recent Statement
      of Financial Accounting Standards (SFAS)
      issued by the Financial Accounting Standards Board (FASB) SFAS 157-163 and
      their
      effect on the Company.





**Statement
      No. 157** - *Fair
      Value Measurements*




In
      September 2006, the FASB issued SFAS No. 157, *Fair
      Value Measurements* ,
      to
      clarify how to measure fair value and to expand disclosures about fair value
      measurements. The expanded disclosures include the extent to which companies
      measure assets and liabilities at fair value, the information used to measure
      fair value, and the effect of fair value on earnings and is applicable whenever
      other standards require (or permit) assets and liabilities to be measured at
      fair value. SFAS 157 is effective for financial statements issued for fiscal
      years beginning after November 15, 2007 and interim periods within those fiscal
      years.




The
      adoption of this new Statement has not had a material effect on the Company’s
      current financial position, results or operations, or cash flows.




**Statement
      No. 159 -** *The
      Fair Value Option for Financial Assets and Financial Liabilities—Including an
      amendment of FASB Statement No. 115*




In
      February 2007, the FASB issued SFAS No. 159, *The
      Fair Value Option for Financial Assets and Financial Liabilities—Including an
      amendment of FASB Statement No. 115.* This
      standard permits an entity to choose to measure many financial instruments
      and
      certain other items at fair value. This option is available to all entities.
      Most of the provisions in FAS 159 are elective; however, an amendment to FAS
      115
      Accounting for Certain Investments in Debt and Equity Securities applies to
      all
      entities with available for sale or trading securities. Some requirements apply
      differently to entities that do not report net income. SFAS No. 159 is effective
      as of the beginning of an entities first fiscal year that begins after November
      15, 2007. Early adoption is permitted as of the beginning of the previous fiscal
      year provided that the entity makes that choice in the first 120 days of that
      fiscal year and also elects to apply the provisions of SFAS No. 157 Fair Value
      Measurements.










Adoption
      of this pronouncement has not had a material effect on the Company’s
      consolidated financial statements.




**Statement
      No. 141 (revised 2007) -** *Business
      Combinations*




In
      December 2007, the FASB revised SFAS No. 141 (revised 2007), *Business
      Combinations.* This
      revision changes the way the minority interest in a company is measured,
      recorded and reported in the parent companies financial statements to the end
      that a statement user can better evaluate the nature and financial effects
      of
      the business combination. The Company will adopt this statement beginning March
      1, 2009.




It
      is not
      believed that this will have an impact on the Company’s consolidated financial
      position, results of operations or cash flows.




**Statement
      No. 160 -** *Noncontrolling
      Interests in Consolidated Financial Statements—an amendment of ARB No.
      51*




In
      December 2007, the FASB issued SFAS No. 160, *Noncontrolling
      Interests in Consolidated Financial Statements—an amendment of ARB No. 51.* A
      noncontrolling interest, sometimes called a minority interest, is the portion
      of
      equity in a subsidiary not attributable, directly or indirectly, to a parent.
      The objective of this Statement is to improve the relevance, comparability,
      and
      transparency of the financial information that a reporting entity provides
      in
      its consolidated financial statements related to the noncontrolling or minority
      interest.




The
      Company will adopt this statement beginning March 1, 2009. It is not believed
      that this will have an impact on the Company’s consolidated financial position,
      results of operations or cash flows.




**Statement
      No. 161 -** *Disclosures
      about Derivative Instruments and Hedging Activities—an amendment to FASB No.
      133*




In
      March
      2008, the FASB issued
      SFAS No. 161, *Disclosures
      about Derivative Instruments and Hedging Activities—an amendment of FASB
      Statement No. 133* .
      This
      standard requires companies to provide enhanced disclosures about (a) how and
      why an entity uses derivative instruments, (b) how derivative instruments and
      related hedged items are accounted for under Statement 133 and its related
      interpretations, and (c) how derivative instruments and related hedged items
      affect an entity’s financial position, financial performance, and cash flows.
      This Statement is effective for financial statements issued for fiscal years
      and
      interim periods beginning after November 15, 2008, with early application
      encouraged.










The
      Company has not yet adopted the provisions of SFAS No. 161, but does not expect
      it to have a material impact on its consolidated financial position, results
      of
      operations or cash flows.




**Statement
      No. 162 -** *The
      Hierarchy of Generally Accepted Accounting Principles*




In
      May
      2008, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 162, *The
      Hierarchy of Generally Accepted Accounting Principles* .
      SFAS
      No. 162 sets forth the level of authority to a given accounting pronouncement
      or
      document by category. Where there might be conflicting guidance between two
      categories, the more authoritative category will prevail. SFAS No. 162 will
      become effective 60 days after the SEC approves the PCAOB’s amendments to AU
      Section 411 of the AICPA Professional Standards.





SFAS
      No.
      162 has no effect on the Company’s financial position, statements of operations,
      or cash flows at this time.




**Statement
      No. 163 -** *Accounting
      for Financial Guarantee Insurance Contracts - and interpretation of FASB
      Statement No. 60*




In
      May
      2008, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 163, *Accounting
      for Financial Guarantee Insurance Contracts-and interpretation of FASB Statement
      No. 60* .
      SFAS
      No. 163 clarifies how Statement 60 applies to financial guarantee insurance
      contracts, including the recognition and measurement of premium revenue and
      claims liabilities. This statement also requires expanded disclosures about
      financial guarantee insurance contracts. SFAS No. 163 is effective for fiscal
      years beginning on or after December 15, 2008, and interim periods within those
      years.




SFAS
      No.
      163 has no effect on the Company’s financial position, statements of operations,
      or cash flows at this time.




**Item
      2. Management’s Discussion and Analysis or Plan of
      Operation.**




The
      following discussion and analysis is provided to increase the understanding
      of,
      and should be read in conjunction with, our unaudited financial statements
      and
      related notes included elsewhere in this Report. Historical results and
      percentage relationships among any amounts in these financial statements are
      not
      necessarily indicative of trends in operating results for any future period.
      This report contains “forward looking statements” within the meaning of the
      Private Securities Litigation Reform Act of 1995. The statements, which are
      not
      historical facts contained in this Report, including this Management’s
      discussion and analysis of financial condition and results of operation, and
      notes to our unaudited financial statements, particularly those that utilize
      terminology such as “may” “will,” “should,” “expects,” “anticipates,”
“estimates,” “believes,” or “plans” or comparable terminology are
      forward-looking statements. Such statements are based on currently available
      operating, financial and competitive information, and are subject to various
      risks and uncertainties. Future events and our actual results may differ
      materially from the results reflected in these forward-looking statements.
      Factors that might cause such a difference include, but are not limited to,
      dependence on existing and future key strategic and strategic end-user
      customers, limited ability to establish new strategic relationships, ability
      to
      sustain and manage growth, variability of operating results, our expansion
      and
      development of new service lines, marketing and other business development
      initiatives, the commencement of new engagements, competition in the industry,
      general economic conditions, dependence on key personnel, the ability to
      attract, hire and retain personnel who possess the technical skills and
      experience necessary to meet the service requirements of our clients, the
      potential liability with respect to actions taken by our existing and past
      employees, risks associated with international sales, and other risks described
      herein and in our other filings with the Securities and Exchange
      Commission.









The
      safe
      harbor for forward-looking statements provided by Section 21E of the Securities
      Exchange Act of 1934 excludes issuers of “penny stock” (as defined under Rule
      3a51-1 of the Securities Exchange Act of 1934). Our common stock currently
      falls
      within that definition.




All
      forward-looking statements in this document are based on information currently
      available to us as of the date of this report, and we assume no obligation
      to
      update any forward-looking statements. Forward-looking statements involve known
      and unknown risks, uncertainties and other factors that may cause the actual
      results to differ materially from any future results, performance or
      achievements expressed or implied by such forward looking
      statements.




The
      following discussion of our financial condition and results of operations should
      be read in conjunction with our unaudited financial statements and related
      notes
      appearing elsewhere in this report.




OVERVIEW




The
      Small
      Business Company was incorporated in the State of Delaware on November 26,
      2002,
      and acquired on the same date from Optibiz, LLC, a California limited liability
      company formed August 14, 2002, all of Optibiz’s assets, primarily the “DARE
      Process”, in exchange for the issuance of an aggregate of 13,000,000 shares of
      our common stock and no other consideration. Our product line is based upon
      our
      patent-pending knowledge base - the DARE Process (Decide, Analyze, Realize
      and
      Evaluate); which process has been formatted into a series of books, high margin
      CD’s and internet downloads. Since inception, we have been developing and
      testing the DARE Process series of business improvement solutions for small
      business owners. We intend to complement these tools with a global network
      of
      licensed business coaches and DARE Success coaches who will provide subscription
      based personalized assistance to micro-entrepreneurs (sole-proprietors to ten
      employees).




Our
      principal executive offices are located at 674 Via de La Valle, Suite 226,
      Solana Beach, California 92075. Our telephone number is (858) 481-5600, and
      our
      facsimile number is (858) 481-5603.









OUR
      BUSINESS




We
      have
      been developing and testing a series of business improvement solutions for
      small
      business owners called DARE products and have been in the same industry since
      inception.




The
      foundation of our solution is the “DARE Process”: Decide, Analyze, Realize and
      Evaluate. This process addresses many problems facing many small businesses.
      Our
      initial products are based on the DARE Process: interactive CD-ROMs targeted
      to
      home based and small businesses; and, our books, co-authored by our founders
      David Larson and Stuart Schreiber, “The Best Small Business Book Ever Written”,
“DARE 2 Market Your Small Business”, “DARE 2 Start Your Small Business”, and
“DARE 2 Start Your Home Based Business.




Since
      our
      inception, we have:




·
            Researched
                the market for small business solutions, identified unmet need in
                the
                market and created business model and
                plan.




·
            Created
                the DARE Process.




·
            Written
                and published four books




·
            Test
                marketed the concept with additional consulting activities to the
                small
                business market.




·
            Authored,
                developed, and created four
                CD-ROMs.




·
            Built
                out two web sites.




·
            Developed
                a framework for a proposed national network of small business
                coaches




·
            Begun
                marketing activities to sell our books and CD-ROMs over the internet
                and
                on cable television.




DARE
      PROCESS




Our
      objective is to become the leading source of small business solutions for small
      companies. Our business is based upon the DARE Process, which our founders
      created from their sixty-five cumulative years of small business experience
      and
      presented in our book, “The Best Small Business Book Ever Written.” The premise
      of the four-step DARE Process is to create a simple method for small business
      owners to address the problems inhibiting the success of their companies. DARE
      stands for Decide, Analyze, Realize, and Evaluate.




“DECIDE”


We
      believe that small business owners must make a conscious decision that they
      need
      to improve their business and their quality of life. Typically, our solution
      asks the customer a series of questions to see if the customer is ready to
      commit to make significant changes in a particular area.









“ANALYZE”




Our
      solutions teach small business owners how to question and diagnose the specific
      problems inhibiting the success and growth of their business. Our solutions
      provide analysis tools and other resources to determine the cause of the
      problems of the customer's small business.




“REALIZE”




Based
      on
      findings from the Analyze step, the Realize step provides business owners with
      a
      process to develop and initiate new programs that are designed to re-energize
      and grow the customer's small business.




“EVALUATE”




Under
      step four, business owners are presented with a process to measure the success
      of each new Realize initiative. Then, they adjust and fine-tune to constantly
      stay ahead of their competition.




OUR
      PRODUCTS AND SERVICES




*CD-ROMs* .
      Our
      primary products consist of our “DARE to Succeed in Your Small Business” CD-ROM
      series. This first and master CD-ROM is an interactive, stand-alone software
      product that is comprised of the DARE Process tools, including analysis forms,
      realize sheets, sample agreements and contracts, one-page plans, and various
      Internet links. This CD-ROM is a superset of our book, “The Best Small Business
      Book Ever Written.” Forms and worksheets are provided using Microsoft Word and
      can be completed either on screen or by hand. We charge $69.95 plus shipping
      and
      handling for CD-ROMs and offer a free 30-day trial.




*Books* .
      We also
      sell our books which include forms, checklists and other tools for analyzing,
      realizing and evaluating the results. The books also encourage readers to visit
      our web site or phone a toll-free number to obtain CD-ROMs. We charge $14.95
      plus shipping and handling for our books and offer a free 30 day
      trial.




*Coaches* .
      We
      intend to qualify, train and license a network of DARE Success
      Coaches.




At
      this
      time we do not foresee any expected purchase or sale of plant and significant
      equipment.




MANUFACTURING




We
      manufacture our CD-ROMs and books using third-party manufacturing facilities.
      To
      date, we have self published our books and developed our CD-ROMs through a
      third
      party vendor. We have not yet entered into any agreement with respect to the
      mass manufacture and production of either our CD-ROMs or our books. We believe
      that there is an adequate supply of large and well-established CD-ROM producers
      and book printers, all with competitive prices.









OUR
      MARKET




We
      have
      identified ten industry-specific markets for small businesses that we believe
      have need for our business consulting solutions:




·
            Home-based
                businesses




·
            Beauty
                salons/spas




·
            Laundry
                services




·
            Realtors




·
            Child
                day care services




·
            Retailers




·
            Accounting
                services




·
            Insurance
                agencies




·
            Auto
                repair and maintenance




·
            Food
                and beverage establishments




We
      have
      identified several markets for these businesses where specific business needs,
      rather than industries, need to be addressed:




·
            Marketing




·
            Planning




·
            Financing




·
            Starting
                a Business




·
            Managing
                a Business




·
            Manufacturing




·
            Operation




·
            Engineering




MARKETING




We
      market
      our products through direct marketing initiatives, public relation campaigns,
      alliances with small business associations, and partnerships with key service
      providers to small businesses. Our direct marketing initiatives include TV
      commercials, opt-in mail, online, print and media. To date, we have produced
      two
      30-second TV commercials that have been aired on nationwide cable television.
      In
      June of 2008, we entered into contracts to provide for media placement services,
      “e-commerce” web site maintenance, and internet click-through advertising on web
      sites. Performance issues arose regarding the efficacy of the performance of
      the
      service providers, and we subsequently terminated those contracts and entered
      into other agreements with third party providers of those and similar services.









CONSULTING
      AGREEMENTS




We
      have
      entered into agreements with outside vendors/contractors on a specific per
      job
      basis to provide a variety of services including marketing, business
      development, graphic design, IT support, video production, commercial
      production, CD development, and financial advisory services. These agreements
      are for specific tasks and we have no term contracts in place at this time.
      The
      Company deems all such contracts to be made and performed in the normal course
      and scope of its business and are otherwise non-material.




COMPETITION




The
      market for small business solutions is rapidly evolving, and competition for
      customers is intense. We believe that the principal competitive factors for
      companies looking to provide solutions to small businesses are cost, and ease
      of
      use and implementation, and brand recognition. Although we are not aware of
      any
      competitor whose primary focus is on CD-ROMs as opposed to books, there are
      several publishing and media companies who are focused on delivering small
      business solutions, such as Entrepreneur Media and E-Myth.




We
      also
      compete with traditional publishers such as John Wiley & Co. (the “Dummies”
series), Pearson PLC (“Idiot Guides”) and Adams Media (“Streetwise”). The
      Dummies series often provides a CD-ROM with their book as a general business
      forms addition rather than a process-based solution. It is possible that these
      other publishers could create a CD-ROM version of their respective books in
      order to compete with “DARE to Succeed in Your Small Business.”




Virtually
      all of our existing and potential competitors have longer operating histories,
      greater name recognition, larger customer bases, and significantly greater
      financial, technical and marketing resources than us. Such competitors are
      able
      to undertake more extensive marketing campaigns for their brands and products,
      adopt more aggressive pricing policies and make more attractive offers to small
      business associations and strategic partners. It is possible that small
      businesses may determine that the other small business solutions are more
      desirable than ours.




INTELLECTUAL
      PROPERTY AND PROPRIETARY RIGHTS




We
      have
      received copyright registration for The Best Small Business Book Ever Written
      (TX 5-915-046), DARE 2 Market Your Small Business (TXu1-290-967), DARE 2 Start
      Your Small Business (TXul-296-949) and DARE 2 Start Your Home Based Business
      (TXul-296-947). We have also applied for copyright registration for two
      additional books and have filed for a patent on our DARE Process. An Application
      for a Utility or Design Patent was filed for the DARE Process on July, 26,
      2004.
      The U.S. Patent and Trademark Office confirmed receipt of the filing as
      Published Application Number 20050055234. We are awaiting confirmation of final
      patent approval for its four-step problem-solving process, which we anticipate
      we may receive as early as early 2009, although the exact date is uncertain.
      We
      will rely on trade secret rights, confidentiality agreements and procedures
      and
      written arrangements to establish and protect our proprietary rights with
      respect to our publications. Despite our efforts, third parties could attempt
      to
      copy or otherwise obtain and make unauthorized use of our products or
      independently develop similar products.









Certain
      legal standards relating to the validity, enforceability, and scope of
      protection of certain proprietary rights are still uncertain, and it is possible
      that there may be no future value to any proprietary rights we now claim. It
      is
      also possible that the steps we may take to protect against misappropriation
      or
      infringement will be unsuccessful. In addition, litigation may be necessary
      in
      the future to enforce our intellectual property rights, to protect our trade
      secrets, or to determine the validity and scope of the proprietary rights of
      others. Such litigation might result in substantial costs and diversion of
      resources and management attention. Furthermore, it is possible that our
      business activities may infringe on the proprietary rights of others, or that
      other parties may make such a claim.




EMPLOYEES




Currently,
      we have three employees, our CEO and COO and an office manager. We do not
      anticipate that any future employees will be covered by an ongoing collective
      bargaining agreement and that our relationship with our employees will be good.
      Although we have experienced no work stoppages and believe our relationships
      with our employees are good, we could be unsuccessful in attracting and
      retaining the persons needed. None of our employees are currently represented
      by
      a labor union.




SIGNIFICANT
      ACCOUNTING POLICIES




**Accounting
      Basis**




The
      statements were prepared following generally accepted accounting principles
      of
      the United States of America consistently applied. We use a June 30 fiscal
      year
      end.




**Cash
      and Cash Equivalents**




Cash
      and
      cash equivalents include all short-term liquid investments that are readily
      convertible to know amounts of cash and have original maturities of three months
      or less. As of June 30, 2006 there were no cash equivalents.




**Accounts
      Receivable**




The
      Company analyzes current accounts receivable for an allowance for doubtful
      accounts based on historical bad debt, customer credit-worthiness, the current
      business environment and historical experience with the customer. The allowance
      includes specific reserves for accounts where collection is deemed to be no
      longer probable.









**Advertising
      Costs**




Advertising
      Costs are expensed as incurred.


September
                  30,
              
              2008
              
              2007Advertising
                  Costs
              
              $
              9,390
              
              $
              0.00




**Use
      of Estimates**




The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States of America requires management to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and disclosure of contingent assets and liabilities at the date
      of
      the financial statements and the reported amounts of revenue and expenses during
      the reporting period. Actual results could differ from those
      estimates.




**Equipment**




Equipment
      is stated at cost. Depreciation is computed using the straight-line method
      over
      their estimated useful lives, which for computer equipment is three years.
      Maintenance and repairs are charged to expense as incurred. Fixed assets consist
      of the following


September
                    30,2008
              
              June
                    302008Equipment
              
              $
              7,846
              
              $
              7,846Less
                  Accumulated Depreciation
              
              
              (5,746
              )
              
              (5,358
              )Equipment,
                  net
              
              $
              2,100
              
              $
              2,488




**Publication
      Rights**




On
      March
      14, 2008 the Company issued 500,000 common shares to acquire the marketing
      and
      publication rights to a book. The fair value of the stock issued on the date
      of
      agreement was $0.05 per share, accordingly the rights are recorded at
      $25,000.




**Revenue
      Recognition**




Revenues
      from services are recognized when there is persuasive evidence of an
      arrangement, the fee is fixed or determinable, services have been rendered,
      payment has been contractually earned and it is reasonably assured that the
      related receivable or unbilled revenue is collectable.









**Income
      Taxes**




The
      provision for income taxes is the total of the current taxes payable and the
      net
      of the change in the deferred income taxes. Provision is made for the deferred
      income taxes where differences exist between the period in which transactions
      affect current taxable income and the period in which they enter into the
      determination of net income in the financial statements.




**Earnings
      Per Share**




Basic
      earnings per share are computed by dividing net income by the average number
      of
      common shares outstanding during the period. Diluted earnings per share takes
      into consideration the potentially dilutive effect of common stock equivalents,
      such as outstanding stock options and warrants, which if exercised or converted
      into common stock would then share in the earnings of the Company. In computing
      diluted earnings per share, the Company utilizes the treasury stock method
      and
      anti-dilutive securities are excluded.




Outstanding
      options and warrants are considered anti-dilutive.




**Stock
      Based Compensation**




The
      Company accounts for its stock based compensation based upon provisions in
      SFAS
      No. 123, Accounting for Stock-Based Compensation. In this statement stock based
      compensation is divided into two general categories, based upon who the stock
      receiver is, namely: employees/directors and non-employees/directors. The
      employees/directors category is further divided based upon the particular stock
      issuance plan, namely compensatory and non-compensatory. The employee/directors
      non-compensatory securities are recorded at the sales price when the stock
      is
      sold. The compensatory stock is calculated and recorded at the securities’ fair
      value at the time the stock is given. SFAS 123 also provides that stock
      compensation paid to non-employees be recorded with a value which is based
      upon
      the fair value of the services rendered or the value of the stock given,
      whichever is more reliable. The Company has selected to utilize the fair value
      of the stock issued as the measure of the value of services obtained.




RESULTS
      OF OPERATIONS




LIQUIDITY
      AND CAPITAL RESOURCES




Three
      months ended September 30, 2008 vs. Three months ended September 30,
      2007.




*Revenues* :
      We had
      $36 in consulting revenues for the three months ended September 30, 2008 as
      compared to $1,448 in
      consulting revenues for the same period in 2007. Our history of producing
      limited revenues is due our initial focus on acquisition, research, development
      and beta testing of our products; secondly, to identifying and developing a
      marketing plan to sell our products and consulting services; and lastly
      implementing the marketing and advertising plan. In
      June
      of 2008 we began actively marketing our CD-ROMS and books over the internet
      via
      an e-commerce web site and “click-through” advertisements on search engines, and
      through thirty second television commercials on national cable television.
      These
      efforts, while continuous, are in the preliminary and formative stages, and
      as
      such, we believe that we will see returns on our marketing efforts in the next
      fiscal year, as we develop and expand our marketing and sales efforts.
      Additionally, we changed service providers for some of our internet advertising
      services in October, 2008, based upon what we perceived to be performance
      related issues with a vendor. We have since retained other internet advertising
      service providers.










*Operating
      Expenses* :
      Our
      operating expenses for the three months ended September 30, 2008 decreased
      by
      $87,447, to $128,535, from $215,982 for the comparable period in 2007. This
      decrease was due to completion of the acquisition, research and development
      and
      beta testing stages of our products, as well as the identification and
      deployment of our marketing plans. Other factors that increased operating
      expenses approximately for the same period in 2007 were associated with book
      design and printing and the re-engineering and production of our compact discs,
      the engineering of our data base and marketing costs related to production
      of
      two television commercials.




*Net
      Loss* :
      Due to
      the factors set forth above, our net loss decreased $86,499 to $128,499 for
      the
      three months ended September 30, 2008 as compared to a net loss of $214,998
      for
      the comparable period in 2007.




OFF
      BALANCE SHEET ARRANGEMENTS




None.




**Item
      3. Controls and Procedures** .




Disclosure
      controls and procedures are designed to ensure that information required to
      be
      disclosed by us in the reports that we file or submit under the Exchange Act
      is
      recorded, processed, summarized and reported, within the time periods specified
      in the Securities and Exchange Commission's rules and forms. Disclosure controls
      and procedures include, without limitation, controls and procedures designed
      to
      ensure that information required to be disclosed by us in the reports that
      we
      file under the Exchange Act is accumulated and communicated to our management,
      including our principal executive and financial officers, as appropriate to
      allow timely decisions regarding required disclosure.




*Evaluation
      of disclosure and controls and procedures* .
      As of
      the end of the period covered by this Quarterly report, we conducted an
      evaluation, under the supervision and with the participation of our chief
      executive officer and chief financial officer, of our disclosure controls and
      procedures (as defined in Rules 13a-15(e) of the Exchange Act). Based on this
      evaluation, our chief executive officer and treasurer, the sole officers and
      directors of the company, concluded that our disclosure controls and procedures
      are effective to ensure that information required to be disclosed by us in
      reports that we file or submit under the Exchange Act is recorded, processed,
      summarized and reported within the time periods specified in Securities and
      Exchange Commission rules and forms




*Changes
      in internal controls over financial reporting* .
      There
      was no change in our internal controls, which are included within disclosure
      controls and procedures, during our most recently completed fiscal quarter
      that
      has materially affected, or is reasonably likely to materially affect, our
      internal controls









*Management
      is responsible for establishing and maintaining adequate internal control over
      financial reporting* .
      The
      purpose of the Company’s establishment and maintenance of such controls is to
      identify material weaknesses that have more than a remote likelihood of leading
      to a material misstatement in the financial statements. While identifying
      control deficiencies and significant deficiencies represents an important
      component of management's assessment, the overall focus of internal control
      reporting is on those items that could result in material errors in the
      Company’s financial statements. As of the end of the period covered by this
      report, our chief executive officer evaluated the effectiveness of the design
      and operation of our disclosure controls and procedures pursuant to Rule 13a-15b
      under the Securities Exchange Act of 1934. Based on his review of our disclosure
      controls and procedures, he concluded that our disclosure controls and
      procedures are effective in timely alerting him to material information relating
      to us that is required to be included in our periodic SEC filings. Management
      is
      in the continuing process of analyzing and adopting new policies and procedures
      to improve the design and operations of our disclosure controls. These efforts
      include identifying and tasking available staff to better segregate duties;
      the
      review and consideration of more sophisticated software and other office
      procedures that would aid us in timely flagging potential material information
      that requires staff and management review and possible action prior to filing;
      and consideration of hiring additional staff geared towards review of our
      financial data and reporting. We continue to train to our existing staff in
      order to achieve reasonable assurance regarding the reliability of the financial
      statements




We
      also
      expect that through the natural learning process management will achieve
      efficiencies as they complete future assessments of internal control. For
      example, management's knowledge of the prior year's assessment results will
      impact its current year risk-based analysis of the significant accounts and
      the
      related required documentation and testing that may be necessary. Management
      may
      determine that certain controls require more extensive testing, while other
      controls require little testing in a given year. Additionally, in reaching
      its
      conclusion of reasonable assurance, management may find it appropriate to adjust
      the nature, extent and timing of testing from year to year - in some years
      delving deeply into selected internal control areas while performing less
      extensive testing in other areas and changing that focus from year to year
      and
      quarter to quarter.




In
      any
      event, we will, consistent with Section 404 of the Sarbanes-Oxley Act of 2002,
      implement reasonable assurance, risk-based reviews of our internal financial
      reporting controls; evaluate internal control deficiencies; disclose material
      weaknesses; review information technology issues; and seek communications with
      auditors in order to periodically review our control procedures, and create
      new
      controls to address perceived material issues regarding financial reporting,




PART
      II—OTHER INFORMATION




**Item
      1. Legal Proceedings** .




None.









**Item
      2. Unregistered Sales of Equity Securities and Use of
      Proceeds** .




On
      September 2, 2008 the Company, without any general solicitation or advertising,
      issued to John Quackenbush 1,000,000 restricted common shares and 1,000,000
      three-year warrants to purchase restricted securities exercisable at $0.10
      per
      share at $0.05 per share for $50,000 cash. No underwriting, discounts or other
      commissions were involved in this transaction or payable as a result thereof.
      We
      relied upon Section 4(2) of the Securities Act, which exempts from registration
      "transactions by an issuer not involving any public offering."





The
      warrants are exercisable at any time during the three-year period beginning
      on
      September 2, 2008 and ending at 5:00 P.M. on September 2, 2011 by the warrant
      holder executing and delivering to the Company a formal written form entitled
      Notification of Election to Exercise Warrants.





The
      funds
      received by the Company are to be used for general working capital and do not
      reflect a material change in the use of proceeds described in our previous
      filings or prospectuses, or payments to any shareholder owning 10% or more
      of
      any class of equity securities or to any affiliate or control person of the
      Company.




**Item
      3. Defaults Upon Senior Securities** .




None.




**Item
      4. Submission of Matters to a Vote of Security Holders** .




None.




**Item
      5. Other Information** .




None.




**Item
      6. Exhibits**


Item
                  No.
              
              Description
              
              Method
                  of Filing31.1
              
              Certification
                  of David Larson pursuant
                  to Rule 13a-14(a).
              
              Filed
                  electronically herewith32.1
              
              Chief
                  Executive Officer and Chief Financial Officer
                  Certification pursuant to 18 U.S.C. § 1350 adopted
                  pursuant to Section 906 of the Sarbanes Oxley
                  Act of 2002.
              
              Filed
                  electronically herewith









SIGNATURES




Dated:
        September 30, 2008
 
 /s/
        David
        Larson
 David
        Larson, President, Chief Executive Officer, and Director