Funding and Managing Your Business

Many network marketers fail because they give up just short of the goal…and keep in mind that the goal is PROFIT. Not just revenue -  bringing in more money than you're putting out. One of the major obstacles to establishing any profitable business is getting to the point where it is a break-even proposition, and then turning the corner into generating profits.

What most people don't realize is that there are a myriad of tax incentives to ease the financial burden of running a home-based-business. Congress has enacted a number of laws designed to encourage entrepreneurs to establish and maintain a business from home that will provide a secondary income. This is a win-win situation for everyone involved - the owner of a home-based-business gets to write off a LOT of things that most people do not, and the government reaps the rewards from those who do it well enough to make money at it in the form of tax revenues.

The average person can realize tax savings of $4000 to $7000 per year if they own and operate a home-based-business - that's a minimum of $16 per workday (based on a 5-day workweek and a two-week annual vacation).

These are legitimate tax breaks authorized by Congress, specifically designed to encourage entrepreneurship in America. One of the bills passed allows you to calculate your savings and change your W-4 to realize an immediate increase in your take-home pay - which you can use to fund your business!

Most CPA's are not aware of these legitimate deductions. Then again, with a tax code that comprises over 18,000 pages, it's no wonder that they can't keep up with everything. A conservative estimate of the tax dollars OVERPAID by the self-employed and small business owners in the US is $160 billion dollars annually!

Double Your Deductions!

There are also ways to generate income by doing actual, paid work on the internet. Be very careful about the "data entry from home" schemes. There may be some that are legitimate, but I have yet to hear of any. I've resisted the urge to purchase any of the information these ads are selling, but I've gotten a lot of input from others that indicate that they are scams. What they neglect to mention is that "submitting" your "data" or "ads" to the companies that are listed in their "report" actually amounts to you paying for advertising as an affiliate for a host of other peoples' businesses. If your advertising is effective, you get commissions. If it isn't, you lose.

Other plans have you join hundreds of free affiliate programs and then advertise on free ad spaces. These are so ineffective that you'll end up working long hours for next to nothing…but the person that sold you the "report" just made a tidy little profit from you, and probably hundreds of others like you.

There is real work available!You can make money by writing articles. Below is a list of websites that will pay you for articles that you write on an unbelievable number of subjects - anything you can think of, and some you haven't.

These are free services - I personally use the first one listed. I am not making a fortune writing articles, but it brings a little money in the door each month which helped keep me going during my start-up phase. The added benefit is that you will gain experience in honing your writing skills, which will serve you well in all your future business endeavors. The editorial staff will even provide writing tips to help improve your skills.

Associated Content - no fee, $3 - $40 per article accepted.

Jungle Page - no fee, about $5 per article, academic subjects.

Freelance referral pages:

Freelance Writing

poewar

SUNOASIS

WorldWideFreelanceWriter

WritingWorld

FreelanceWritingOrganization

TelecommutingJobs

Managing Your Business

The one place where many entrepreneurs fall down is in the basic management of their business. Being successful in any business venture requires at least a minimal amount of management skill.

The most important thing is to keep track of your money! Knowing where your money is being spent, and how effective those expenditures are in generating revenue will often mean the difference between success and failure. At the very least, keep track of your cash flow on a regular basis - cash in, and cash out. No business on the planet can survive without knowing what their financial status is at all times.

Keeping records is a big pain…but not keeping records is an even bigger pain. When tax time rolls around and you need to figure out what kind of profit (or loss) your business has generated, you will understand this completely. There are software programs available that will assist in record keeping for your business, or you can use spreadsheets to do it manually.

Record every expenditure related to your business. Website subscriptions, hosting services, educational materials, stamps, envelopes, paper, printer cartridges, etc. Keep track of the miles you drive related to your business; it is a tax write-off. Running a legitimate home-based-business will entitle you to write off a portion of your housing expenses, whether you're an owner or still renting.

Revenue is NOT profit…I see so many ads on the internet and have heard so many sales pitches talking about the money these guys are raking in, complete with screenshots of their accounts to prove they are getting rich. What you don't see in these ads is what it took to get that revenue in the door. For example, if I pay $5,000 for an ad campaign and invest 100 hours of my time, and my sales revenue from that campaign come to $5,100…I just spent 100 hours of my life working for a dollar an hour. You get the picture.

Speaking of profit, the government is going to want some of it. When you get past the break-even point and start generating profits, make sure you tuck a percentage of it away in an interest bearing account so you can pay your taxes when they come due. Too many small businesses have had to shut their doors bcause they end up scrambling to find the funds to pay their tax bill when the time comes.

Your business revolves around information. Your financial records, business contacts, websites you've bookmarked, etc. Protect it well! Store the information you receive and generate in relation to your business in more than one place. I recommend at the very least that you get an external hard drive and do a weekly backup of the data vital to the running of your business. There are also services available, some free, where you can store critical files. You can also burn the information to a CD and keep it at a friend or relative's house.

Your most important physical asset is your computer. Safeguard against accidental or deliberate damage to that asset by investing in the proper protection. Buy a surge protector for your computer, preferably one with a battery backup built in that will allow you to shut down gracefully in the event of a power outage. One can be purchased for less than $100, and can potentially save you a lot of grief. And get a good anti-virus program! I personally recommend PC Cillin by Trend Micro…I've used both of the other, more popular brands and have had my computer infected with viruses that I didn't even know existed.

Manage your time effectively and you will experience much less frustration in the overall management of your business. Schedule a timeslot for every business related task and stick to it as closely as possible…including the administrative tasks discussed here. It may seem like it takes a lot of time away from doing the things that will generate revenue, but in the long run the time you invest now will more than pay for itself.