Today, people are very conscientious about every dollar coming in and every dollar going out. And you should be too. These are some of the worse economic times any us have seen in our lives.
So it only makes a great deal of sense that we not only have to scrutinize our expenses, but we have to look at almost everything we do differently.
There are primarily two sets of tax laws in this country. One is for employees which most of us know isn’t much with regard to tax deductions.
The other is for business. Small business or home business that is done full or part time.
This is where the difference can be huge for the expenses you make on a regular basis.
For example, your house, car lease or payment, repairs,maintenance,gas, even your spouse if you hire her, vacations (if they are combined with the appropriate amount of business, lunches, dinners and so on.)
Just as long as you are able to provide proper documentation to support your deductions.
These deductions can be used against the earnings of your full time job if you are working your home business part time.
The important thing is to keep accurate records. I recommend a tax diary.
Here’s a great resource: get a copy of the book,” Lower Your Taxes Big Time” by Sandy Botkin. In Sandy’s book you’ll discover more great tax tips that I have mentioned here.
Sandy is a former IRS attorney and senior tax law specialist. If you already have an accountant, get your accountant a copy also.You can get the book and tax diary from bookstore’s or Sandy’s site, www.SandyBotkin.com.
The book is easy to follow and written for small and home based businesses. Just follow what Sandy says and you’ll understand what your tax deductions should be, how to keep accurate records, and you’ll be way ahead of the game.
So now that we know it makes great sense to have a home based business, what type of business should you consider or think about?
For many this can be overwhelming and a sticking point.
The choices can be many, but here are some considerations to give thought to.
Think about what you love to do or are passionate about. This is probably where you have the most knowledge and expertise. Plus people will sense your passion for your business and that will be a benefit as you make presentations and discuss your business with potential clients.
Today more than ever companies are outsourcing work to individuals to work from home. So if you might be a person that is saying, “I really do not have a favorite hobby or something I am passionate about that I would like to turn into a business”, this may be a good option for you.
Places to go to are, www.elance.com, www.guru.com, www.assistu.com, or you can do a search online for virtual assistants and check out many opportunities. With some of these sites, the projects or jobs listed are bid on a per cost basis. So you have to put a little thinking into what you think you are worth to perform what is required.
Affiliate programs are huge today with people generating hundreds if not thousands from home monthly.
What I like about affiliate programs is that you don’t need a website, product or service. All this is provided for you from a particular vendor looking for people to sell what they are offering. They supply the sales page which you have a referral link so you get paid for the sale. And the commissions can be big. Generally 15% to as much as 70% are paid for every sale made. But again this takes work as well, you will need to promote and create awareness for the product or service to make sales.
Check out www.clickbank.com to see hundreds of products for affiliate sales.
A third option for some may be the best and easiest and receive mentoring along the way. Network or what is commonly called Multi Level Marketing.
Many people today have done extremely well with this business model.
Plus the opportunity to make passive income on a month to month basis is a big feature. A big key here is that the person you decide to get involved with can make the difference. Most people fail with this business model not because of company,product or service, but the lack of business savvy early on, as well as what is required to be successful.
The choice of companies is huge and the decision again can be overwhelming.
There are resources you can find online that has critiqued many of these companies, as well as watch dog groups that list good ones, ones to stay away from, or ones having some problems.
A good website is www.mlmwatchdog.com, or just Google mlm or network marketing companies and see where your research takes you.
With Network Marketing or MLM companies I would try to stay with publicly held companies verses privately held companies. They are many excellent privately held companies to choose from, but publicly held companies are held to a higher standard.
Because they are public, they have shareholders. Therefore they must follow the guidelines of the Securities and Exchange Commission.
Another consideration with any company you may be looking to do business with is the length of time they have been in business. The five year rule is something that deserves much consideration. Usually a company that has been in business five years or more has most of the growing pains behind them and has some good benchmarks to look at when considering if this particular company will be a good fit for you to partner with.