- Never operate as a sole proprietorship. Even if your accountants tells you to “keep it simple” or you are too small to incorporate or you don’t make enough money, don’t listen! You are only receiving one niche of advice from a tax perspective and even it is may be correct from a tax point of view only (because you do not make enough profits to save on SE taxes) you are missing out on the marketing, legal and financial input also. For example, from a marketing point of view you are coming from a point of weakness if you are attempt to position yourself as the owner operator of a sole proprietorship vs the President of your own corporation. Plus you severely limit your ability to gain access to business credit when you do not separate your personal and business credit.
- Never use the online business checking account balance as the only financial tool to give you feedback on how to run your business. Most people run a small business the same way their run their personal lives, by using their online PERSONAL checking account balance to make personal financial decisions. There is no comprehensive personal budget. Your business should have a tax and bookkeeping system with update software to tell you exactly where your profit and loss is at (even if you have not made a sale). Ask yourself, are you running a real business or just a hobby?
- Separate your personal and business credit. This is an absolute must in today’s tight credit markets. This involves learning how to manage your business vendor and cash lines of credit, your personal credit score and working with D&B® and Corporate Experian® to develop a business credit profile quickly. Otherwise, your business may stand “financially naked” in front of the world with our you knowing it. How much business will that cost you? Can you afford not to master this subject?
- Master the leverage of joint ventures to grow your business. You must learn the highest form of leverage to bring in clients at the lowest cost to keep you in business the first 3-6 months in business. Bring in new customers or clients are very expensive unless you know how to leverage properly other people’s money and get them to properly endorse you to their list. Most small business owners run out and place ads to attract new customers and wonder why they run out of money within 90 days. Study this subject. Learn the tools you must have to leverage other people’s money to grow!
- Find a company that can provide a turnkey solution to help you start you business so you can focus on making a profit. After all, making a profit is the #1 reason to start a business. If you spend 14 hours per day attempting to do everything on your own to save a few dollars, you may quickly find yourself out of business because you had no time to acquire new clients or customers to grow your business.
Entries Tagged 'Small Business' ↓
5 Tips to Get Your Business Off to a Fast Start to Profits™!
July 11th, 2010 — Business Credit, Dun and Bradstreet®, Joint Ventures, Small Business, Small Business Start-Up, Sole Proprietorship
Costly Mistakes 6-10 – in Business
July 7th, 2010 — Business Credit, Business Credit Builder, Business Financing, Business Promotion, Business Startup, IRS, LLC, Nevada Corporations, Other Business, Podcasts, S Corporation, Small Business, Small Business Start-Up, Sole Proprietorship, State Incorporation, Taxes, U.S. Company, Why Us, Work and Family
Forming a C corporation to take advantage of fringe benefits when your business doesn’t fit the C corporation model. (Can you spell nightmare?)
Asset Protection and Business I.Q.
Costly Mistakes – Continued…
July 7th, 2010 — Business Credit, Business Credit Builder, Business Credit Video, Business Financing, Business Startup, CPA, California Corporation, Credit Bureaus, Incorporation, LLC, Nevada Corporations, Other Business, Personal Credit, Small Business, Small Business Start-Up, Sole Proprietorship, State Incorporation Video, Taxes, Top Five Percent Club, Why Us, Work and Family, World Internet Summit
Costly Mistake Number 3:
Forming an LLC and having it managed by members instead of managers* (A sure way to lose flexibility and control)
Creating A Foundation For Success
July 7th, 2010 — Business Credit, Business Startup, Incorporation, LLC, Nevada Corporations, S Corporation, Small Business, Small Business Start-Up, State Incorporation, State Incorporation Video, Why Us
Fast Business Start up
Advanced Internet Strategies to Grow Your Business!
June 7th, 2010 — Home Based Business, Joint Ventures, Other Business, Passive Income, Small Business, Sole Proprietorship
When it comes to growing your internet business, new tools and resources are available all the time. What I will tell you up front is that the majority are looking for the latest technology, graphics, or tools to help make more money online. Many times it is not the cool new tools or strategies, it comes down to the basic fundamentals for success. First, let’s address a few of the fundamentals to improve your results: That is the ability to sell in print. If your headlines, subheadlines and copy are ineffective, no mater how good your videos or graphics are you will get little or no results. Find a great copywriter and buy their books or programs, such as Bill Glazer, Dan Kennedy, Jay Abraham, John , Mike Dillard and many others. Invest in tools and resources to improve this skill. Even if you outsource your writing, the better you have a basic knowledge the better.
