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How to Use Personal Tax Deductions to Finance a New Internet Home Based Business

Scraping up enough money to start your own business can be a challenge. By starting a internet home based business with the intention of making a profit and journalizing what you do each day you can start to deduct taxes even if you have not invested any money. Everyone would like to pay less taxes.

In Canada US ,UK, Australia etc We have two tax systems one for employees and another for people in business. The governments in these countries what to encourage us to start our own businesses so they have introduced ways for us to save personal taxes. We can write off part of our house expense our cars and transportation. Any costs to run and start our own companies. This can mean a saving from $3,000.00 to $5,000.00 or more for the average person per year. This is enough to start a home based business.

The other choice we have is to choose a business system complete with training when we get involved in a Network marketing company. Most network companies have a compensation plan that encourages us look for and enroll others in the business and sell products. Thus we leverage our own efforts. This what I call a peoples franchise. A franchise is a system of doing business. We do not have to do research or create products or carry inventory, hire and track people etc that is all done for us.

Even if we have no money to start the business if we commit 30 min to an hour per day and journalize our time we can start to take advantage of deducting a lot of our expenses. We can start to write off phone expenses, property taxes, car mileage, mini vacations, computer costs and many more expenses. Even if we don’t have the money to sign up to a network marketing company we can become a referral agent which I will talk about in future blogs.

By spending time each day promoting your business with free promotions on the internet and sharing with friends and people you meet in person or on the internet you can build a business starting from zero dollars. The best part is that the taxes you save from owning your own home based business will finance your new venture and in most cases put extra cash in you pocket rather than the tax man.

Contact me by email I’ll send you would like a list of tax deductions and tips you can use to start your home based business.

Lack of Business Planning

Beware the temptation to jump into business before you’ve done the proper planning. And don’t underestimate that temptation. Once you have made up your mind to start a business, it is difficult to wait to get going. You want to start moving, making money, living the life you’ve dreamed of. But if you want your business to succeed, you must take the time to understand it, yourself, the industry, and the market.

It helps to consider how you would approach buying a house. Would you sign a check and move on in? Or would you research everything first to make sure you aren’t getting a lemon? Treat starting your own business the same way. Don’t invest your time, money, energy, and dreams in a business you don’t understand inside and out. More businesses fail for want of proper planning than do for want of money.

Business plans are perfect for taking you from ignorance to understanding. In order to produce a good business plan, you must learn all the ins and outs of your proposed business. And the process of preparing the plan will teach you much of what you need to know in order to run that business.

The main reasons people skip business plans are often the same as the reasons people avoid accounting: 1) many people don’t like to write and 2) the time it takes to prepare the plan takes away from the time to run the business. But those reasons – those excuses, really – are just as inapplicable here.

Just because you don’t like doing something doesn’t mean you don’t have to do it. Running your own business will mean sacrifices. Luxuries like vacation time, sick days, salaries – these are the first things to go out the window (at least in the beginning). Taxes must be paid, shipments must go out, decisions must be made, invoices must be sent, and bills must be paid – whether you like it or not. Same with accounting. Same with planning. And, as with accounting, you can always hire someone to prepare your business plan for you.

The second reason people often skip the business plan stage is because they want to spend the time it would take to plan their business to be in business instead. They see the planning stage as taking time with no reward. But not only is that not true, it is also supremely short-sighted. It may be true that taking time upfront to plan your business will increase the time until you can start making money. But it will also likely increase the amount of money you can make. Writing a business plan allows you to explore your business before you start. It allows you to make your mistakes on paper rather than in the real world.

Write a business plan. You’ll be better for it. It will save you hassles and make you money in the long term.

The Profit Driven Business

There are five reasons every small business owner needs to consider using profit as a stimulus to successfully drive their daily business performance.

1. Expectations

Most business owners expect to make a profit. Expectations define the performance of their employees, the effectiveness of their product or service, the reputation of their business and the ability to improve their business.

2. Standards

Profit comes from accomplishing consistent results. Consistent results come from setting standards for what must be completed and accomplished every day. The standards you set should be reflective of your company values and serve as a compass for the direction you will grow in.

3. Numbers

Profit is a number, not a trend or a plan. It’s a result. Each day evaluation of your numbers will tell you if you’re moving forward or backward. Set a starting point and aim for a specific goal and you will be able to measure your progress. Daily numbers must be part of every core activity involved in your business.

4. Cash Flow

Cash and cash flow is vital. Profitable cash flow is even better. On a daily basis not all cash flow will be profitable, but setting and achieving a daily margin of profitability is critical to success. Successfully monitoring cash flow allows you to meet obligations and protect your future.

5. Opportunity

Profitable businesses are in the best position to capitalize on new and ongoing opportunities. Everyday be alert to new ideas, technologies, business investments and strategic alliances that you may want to take advantage of. Daily profitability gives you choices.

A profit driven business can take you to the success destination of your choice.