Why, When, Where, What and Who can be an Entrepreneur
Why a home based business and should it be online. How to make money and how to recognize an opportunity.
One of the most important factors in starting out is to determine why you might want to make money online or have a home based business. I have found that most people when they begin to get education are very focused on the "what to do". Even as children we are saying "when I grow up I want to be". I have found over the course of my lifetime that why you do anything is a critical 1st step.
Before you decide what to do, determine why you are choosing a particular field. Are you interested in only making money? Are you pursuing a passion and you don't really care whether you make a lot of money or not. When a person is young and doesn't have a family, maybe even still lives with parents, then that person is sometimes disinterested in how much revenue is available. That I would suggest will change when there are car payments, mortgages, medical and dental bills, savings for college, insurance etc etc. So having said that, perhaps the more you can earn from invested time the better.
I suggest that you drive around different neighborhoods and decide how you want to live. What kind of car or cars do you want to drive, do you want children or what kind of colleges do you want for the ones you already have? Do you want to travel to exotic places. Do both of you want to work. If you are a woman do you want to work after having children; do you mind if they go into "storage" otherwise known as baby sitters or daycare. We all have dreams and goals and want the finer things of life. So the 1st thing to do is identify why you are going to work and secondly what to do. Write out a list of activities that might turn into a part time at home based business.
I suggest that you drive around different neighborhoods and decide how you want to live. What kind of car or cars do you want to drive, do you want children or what kind of colleges do you want for the ones you already have? Do you want to travel to exotic places. Do both of you want to work. If you are a woman do you want to work after having children; do you mind if they go into "storage" otherwise known as baby sitters or daycare. We all have dreams and goals and want the finer things of life. So the 1st thing to do is identify why you are going to work and secondly what to do. Write out a list of activities that might turn into a part time at home based business.
Why work at home might be an advantage.
A W-2 wage earner is someone who has the fewest tax deductions. A person who operates a home based business has the same tax advantage as a big business or a person who has an outside office and many of your on going expenses can turn into tax deductions if you have a legitimate home based business. You must have intent to profit or it's considered a hobby.
Consult with material from the IRS as well as a professional. I am not going to give you tax advice but suggest that you find a tax adviser who can help you set up your home based business properly. It is very important that you keep good records. Document everything, this is where a day planner is crucial.
The five W's are important on your tax record, why you did it, who you did it with, when; the day and time of the activity, what transpired and the business reason you met and where the activity took place. This might take extra effort but it is essential to your record keeping. You can go to http://www.irs.gov/ and find periodicals covering what you need to do to have home based office as well as what constitutes a legimitate business venture and not just a hobby.
Consult with material from the IRS as well as a professional. I am not going to give you tax advice but suggest that you find a tax adviser who can help you set up your home based business properly. It is very important that you keep good records. Document everything, this is where a day planner is crucial.
The five W's are important on your tax record, why you did it, who you did it with, when; the day and time of the activity, what transpired and the business reason you met and where the activity took place. This might take extra effort but it is essential to your record keeping. You can go to http://www.irs.gov/ and find periodicals covering what you need to do to have home based office as well as what constitutes a legimitate business venture and not just a hobby.
When and Where do you want to set up a home based business. The answer is ASAP; having said that you also want to be very prepared. Have a three "P" approach. Preparation, Planning and Persistence. Don't get so caught up in preparation however, that you don't take action at all. There is "analysis paralysis" where there is just too much information (TIM).
This is where planning and a systematic approach will be of benefit. How you prepare is going to depend on 1. how much capital you have. 2. Are you the expert or do you have to hire one. 3. Is this a home based business opportunity or an office away from home. 4. Does your business require employees? If so you will need an "EIN" employee identification number, booklets from the IRS and state you live in explaining an employers responsiblity.
If you are not trained in accounting or bookkeeping you might consider hiring one to at least set up your bookkeeping system and all the necessary licenses. An offline business has many factors even if it is a part time one. To have a tax benefit you will need to have an "intention to profit". My blog is not designed to cover all the myriad details required to operate a home based business. Just know you will be way ahead of the game if you understand how to read profit and loss and balance sheets.
Most businesses failures occur not because a person doesn't understand the process they chose i.e. a physician or attorney might set up a business but they need other professionals to run the infrastructure. The most expensive lesson will be caused by ignorance. So having gone through only a small number of requirements for business as usual outside the home, let's proceed to in home business opportunities.
In order to have a recognized home office deduction on your taxes, there are several required elements. You may again go online search the IRS site on home office deductions and follow it to the letter. The only suggestion I might make is for you to take photographs of the room you set aside showing that it is a exclusive area. Date the photo and mail it back to yourself "certified return receipt requested" and put the envelope away unopened in a safe place. If you do this every six months or so you will have proof of a genuine home office.
As far as bookkeeping goes there are a couple of software programs I like but remember I have 30 years experience as a bookkeeper as well as 2 years of accounting training so what looks easy to me may not be to you. I like Quicken for businesses as well as Quick Books Pro. Both of these link up with Turbo Tax if you are doing your own taxes. However depending on your expertise, a professional may be the least expensive way to go long term as the more complex your business the greater the need. I am not intending to be discouraging about setting up home based business opportunities, but being mindful of the details is critical to your long term success. There will be obstacles but persist and get professional help. One suggestion might be to check with local Senior Citizen organizations as they may have folks available to assist you for nominal fees.
Next posting will cover the what to do: Make Money Online, Make Money at Home, What constitutes a Business opportunity, Can you work from home and make money. Be succesful, reach your dreams and goals Review of what I've already tried and the results so far.
This is where planning and a systematic approach will be of benefit. How you prepare is going to depend on 1. how much capital you have. 2. Are you the expert or do you have to hire one. 3. Is this a home based business opportunity or an office away from home. 4. Does your business require employees? If so you will need an "EIN" employee identification number, booklets from the IRS and state you live in explaining an employers responsiblity.
If you are not trained in accounting or bookkeeping you might consider hiring one to at least set up your bookkeeping system and all the necessary licenses. An offline business has many factors even if it is a part time one. To have a tax benefit you will need to have an "intention to profit". My blog is not designed to cover all the myriad details required to operate a home based business. Just know you will be way ahead of the game if you understand how to read profit and loss and balance sheets.
Most businesses failures occur not because a person doesn't understand the process they chose i.e. a physician or attorney might set up a business but they need other professionals to run the infrastructure. The most expensive lesson will be caused by ignorance. So having gone through only a small number of requirements for business as usual outside the home, let's proceed to in home business opportunities.
In order to have a recognized home office deduction on your taxes, there are several required elements. You may again go online search the IRS site on home office deductions and follow it to the letter. The only suggestion I might make is for you to take photographs of the room you set aside showing that it is a exclusive area. Date the photo and mail it back to yourself "certified return receipt requested" and put the envelope away unopened in a safe place. If you do this every six months or so you will have proof of a genuine home office.
As far as bookkeeping goes there are a couple of software programs I like but remember I have 30 years experience as a bookkeeper as well as 2 years of accounting training so what looks easy to me may not be to you. I like Quicken for businesses as well as Quick Books Pro. Both of these link up with Turbo Tax if you are doing your own taxes. However depending on your expertise, a professional may be the least expensive way to go long term as the more complex your business the greater the need. I am not intending to be discouraging about setting up home based business opportunities, but being mindful of the details is critical to your long term success. There will be obstacles but persist and get professional help. One suggestion might be to check with local Senior Citizen organizations as they may have folks available to assist you for nominal fees.
Next posting will cover the what to do: Make Money Online, Make Money at Home, What constitutes a Business opportunity, Can you work from home and make money. Be succesful, reach your dreams and goals Review of what I've already tried and the results so far.
