|
Home / Business / Entrepreneurship
Make 2006 Your Most Profitable Year Ever: 5 Crucial Steps for Every Entrepreneur
By:Germaine A. Hoston
Many of us maintain the tradition of making New Year's resolutions for our personal lives. The New Year has just as special significance for our businesses too.
Whether you're an experienced business owner or are just starting out (or thinking about starting a business), there are 5 crucial steps you need to take at the beginning of the year to assure the 2006 is your most prosperous year ever.
1. If you have not done so yet, take advantage of the greatest tax shelter available today: the opportunity to start a small business and organize your business activities to generate multiple streams of income for you.
If you have been thinking about starting your own business but are still sitting on the fence, resolve to take action today! With the internet making getting into business for yourself easier and more cost-effective than ever, there's no excuse for not taking that crucial first step.
2. If you already own your own business make sure that you're generating income from more than once source.
This way, if changing economic conditions exercise a negative effect on one stream of income, you are not left high and dry (so to speak!). If you're involved in network marketing, you'll have to make a point of ignoring those who would have you focus exclusively on a single company (often start up) that might not be around 5 years from now). You can and should diversify (within reason, of course!).
3. Make sure that you are using the most advantageous structure for operating your business.
This applies to you whether you have a traditional bricks-and-mortar business, operate a UPS Store franchise, or are operating an e-business doing affiliate marketing.
If you're operating your business as a sole proprietor, as most small business owners do, your business is not in the most advantageous position to reap the fruits of the generous tax deductions available to small businesses. More important, you are placing all your personal assets, including your home, your vehicle, your personal savings, and your family's future at risk.
Today, it's no longer as cumbersome as it used to be to establish an alternative business structure that will protect you from such risk. And with all the resources now readily available to the average person at minimal cost, you don't have to incur massive legal fees just to get started.
4. Resolve to learn the information you need to know to operate your business in the most profitable manner.
Continuing education about structuring and operating your business is an absolute necessity for the entrepreneur. Even if you have an accountant or attorney on your mastermind team, how do you know if she has the knowledge and sophistication to handle this for you properly? Unfortunately, too many, do not, and their lack of expertise can cost you thousands of dollars. If your accountant or attorney tells you, for example, that you "don't need" an LLC or corporation to do business, you'll know to run--do not walk--out of their office as quickly as possible and search elsewhere for competent advice.
In addition, even if you have compentent counsel, it is your responsibility as a business owner to operate your company in accordance with governent requirements governing corporations, partnerships and LLCs.
5. Adopt a Mindset that Focuses on Tax Reduction as a Way of Life
The largest single expense of most Americans is taxes. To optimize your bottom line, you must be up to date on which expenses are tax deductible for your business and keep proper records to document them. Using a credit card--even a personal card dedicated to your business--and an accounting program that is specifically for businesses--we recommend QuickBooks by Intuit--will help you immensely in keeping track of your expenses. It can be bought at a substantial discount on eBay.
Implementing these 5 steps might sound complicated at first, but they are well worth the trouble. Remember that in running your business, "Keep it simple" can be costly advice. What simplest--setting up shop as a sole proprietor, operating on a cash basis, using your personal bank account instead of a separate business account for your business, and failing to track and document expenses using appropriate business accounting software--can hazardous to your financial future.
Take advantage of the fresh start spirit of the New Year to implement these 5 tasks, and you'll be on your way to making this year your most profitable ever.
©Copyright 2006 Azur Pacific Associates. All media and formats known and unknown. All rights reserved.
Digg
del.icio.us
Blink
Stumble
Spurl
Reddit
Netscape
Furl
Article keywords: home business, small business, entrepreneur, incorporate, corporation, legal entity, LLC, limited liability, limited partnership, sole proprietor
Article Source: http://www.articles2k.com
Germaine A. Hoston, Ph.D. is a political economist, President of Azur Pacific Associates, and small business consultant. With over 20 years of experience, she has operated successful consulting, translation, and internet marketing businesses in the United States and France with clients worldwide. Receive a free special report when you sign up for her free eNewsletter for small business and home business entrepreneurs at: www.wealthstrategies202.com.
|
|
| Top Entrepreneurship Articles |
- 1). Stellar Customer Service in 10 Simple Steps By : Debbie LaChusa
If you're like me, you've had plenty of experience with BAD customer service. Just think about the last time you had a bad experience with a product or a service.
Perhaps the product or service did not live up to the sales pitch. Maybe the company was unresponsive to your calls or emails. Maybe they did not do what they said they were going to do.
|
- 2). Pamper Me Please! - Self Care For The Busy Entrepreneur By : Kristie Tamsevicius
Why am I doing this? I just feel like I can't focus today! I feel like I'm not enjoying my job like I used to. What's the matter with me?
I NEED A BREAK!!!!
When you are CEO, head nurse, mommy, head of janitorial services, and chief crafts coordinator, life can leave you a little weary sometimes. As a business owner YOU are your most valuable resource, so it makes sense to take care of yourself! When
you start to feel overwhelmed, it's important to know when to slow down and take a break.
|
- 3). Top Five Reasons to Establish Business Credit! By : Corporate Credit Concepts
Too Many business owners are using their personal credit to finance the launch, expansion or growth of their business. A majority of business owners have no idea what business is or how to establish it. By following a few simple steps any business owner can establishing business credit, therefore, separating their personal credit from their business credit.
|
|
|
- 5). The Advantages of Owning a Handyman Franchise By : Dorian
Many exciting reasons to participate in a handyman franchise business exist. One of the most sought after franchise concepts for a decade has been in the industry of home improvement. These franchise systems are planned specifically to take on common problems that need maintenance around the home.
The preceding facts can explain why the home improvement market is growing.
|
- 6). Rich Jerk - Are You Absolutely SURE? By : Ryan Parker
Do you want to be a millionaire, no a billionaire??!! This hour? This very minute? I'm sure you know the answer to the question. However I'm sorry to break it to you, but its not going to happen in this world we live in. At least not for 99.999% of us. Good. Now we have established that, in order to be a millionaire or indeed a billionaire you need to work, be smart and work some more.
|
- 7). What it Takes to Succeed in Business! By : Murad Ali
Business if tough in today’s world! Most small businesses go bankrupt or are closed abruptly in the first five years. Over the course of the next five years many of the remainders also “pack up” shop and lock their doors. Why do so many businesses fail?
The reasons lie in three main spheres. Those spheres of influence can be labeled personal, customer, and operations.
|
- 8). Believe the Hype? - Making Millions Online By : Michael Saunders
How much money can you make online? Are there really online millionaires?
Of course there are, but is it reasonable to expect that you can be one of them. Don't let the hype surrounding the emergence of opportunities cause you to lose your common sense. Millionaires are made by effectively assessing the needs of a market and having a product or service that addresses those needs.
|
- 9). Stop Charging by the Hour and Make More Money as a Creative Professional By : Kirstin Carey
One of the biggest challenges with a creative business is getting paid what you are worth. The root of the problem isn't that the client doesn't have the money and it isn't that the client isn't willing to pay you what you are worth. The root of the problem is how you are charging and how you are creating value in the mind of the client.
First, you must create a business based on value pricing and not hourly pricing.
|
- 10). How Well Do You Know Your Prospects? Take this 10-Point Quiz to Find Out By : Debbie LaChusa
It’s crucial to know your prospects if you want to market effectively to them.
Take this quick quiz to see how well you know and understand your prospects. If you can't answer these questions, how can you be sure you are connecting with your audience in a relevant and meaningful way?
How can you be sure you are reaching them with a compelling message.
|
| New Entrepreneurship Articles |
|
|
- 2). Trying to Save What You Have is a Sure Road to Losing It - Part 2 By : Helmut Flasch
We all have heard about the risk-takers, the entrepreneurs, who despite huge hardships, made it big in their career through their courage and tenacity. They are success stories we love to hear and which we draw inspiration from. They work very hard and are willing to take risks to achieve their goals. While others are contented with an average income and career, they strive for the stars.
|
|
|
|
|
|
|
- 6). Factoring Basics By : Marco Terry
Most sales to commercial clients usually carry 30 to 60 day payment terms. This means that as a supplier, you must deliver your products or services now. However, your client has between 30 to 60 days to pay you.
This creates a significant challenge for owners of small and midsize businesses. The problem is simple. Your clients want to pay you in 30 to 60 days, but you must pay rent, payroll and your suppliers now.
|
- 7). Can any Tom,Dick and Harry Start A Home Business? By : Mary Janet
First, my apologies to who ever is offended by the title of this article on home business.
Okay back to the question. Can every Tom, Dick and Harry start a home business?
I know you may have a different view from mine. But let me first tell you that just like a candle lights up a room, this article was written with the intention of providing some light on home business.
|
- 8). Computer Consultant Startup: What's The First Step? By : Joshua Feinberg
If you're the typical person who’s considering becoming a computer consultant, then you are probably a LAN administrator, doing some kind of PC support job for big enterprise or maybe even working for a smaller integrator. In this article, you'll learn what you need to do first to realize your goal of becoming a computer consultant.
From talking to hundreds of people in this situation right now, the number one thing is that you have to decide that you really want to and really need to do it.
|
- 9). Success Factors By : Russell Brunson
What is the difference between successful people on non-successful people? Are successful people more intelligent or do they just have better opportunities than non-successful people?
I heard Brian Tracy say, "Only Difference between successful people and non successful people is this: "Everybody thinks about what they want, but successful people think about what they want, and HOW to get it!"
The most important things is the HOW.
|
- 10). Computer Consultant Skills: Can You Be Your Own Boss? By : Joshua Feinberg
If you're just getting started, what do you need to know about the business aspects of being their own boss? It really boils down to two very straightforward things. You need to have some basic business skills and knowledge and you need the motivation to become a computer consultant.
Motivation
You have to really want to become a computer consultant badly.
|
|
|
