Career Employment Strategies

Wednesday, April 25, 2007

Home Business or Home Opportunity

Here is the main reason:

How about because your crazy if you don't start a small business. Whoa don't leave yet. Let me explain. In most countries all expenses relating to a small business are tax deductible such as office space (yes even at home), auto (gas, tires, lease, maintenance, insurance, etc) phone, computer, printer, scanner, digital camera. With most tax systems equipment can be depreciated and this includes your vehicle. Business lunches and accommodations while traveling and more. Each area and local is different but one phone call to a local accountant or book keeper will clarify what is applicable to your area. I have a saying; " IT'S NOT WHAT YOU MAKE - IT'S WHAT YOU KEEP THAT COUNTS", are you starting to get the picture ?? Most households are stuck in the system. Two pay cheques coming in, let us say $25,000 each for a total house hold income of $50,000. Let us assume a 30% tax bracket. No expenses to claim so 30%= $15,000 deducted and sent to the government each year. This would leave $35,000 to live on for the year. Now let us assume there are two children and day care costs at $100 a week. Say Mom takes 2 weeks vacation a year that leaves 50 weeks at $100= $5000. Now we are down to $30,000. Now let us assume Mom has to travel a second car to get to work. $100 a week car lease and $100 a week gas=$200 a week x 50 weeks = $10,000. Now you are down to $20,000 left to come and go on. I could continue with an assumed mortgage or rent payment, the cost of Hubby's car and so on but it's easy to see how you can make $50,000 and still have no money.

What are the advantages of owning a small business ?

This answer is simple. To reduce your taxable income. Remember what I said previously " IT'S NOT AS IMPORTANT WHAT YOU MAKE AS IT IS WHAT YOU KEEP." This is the secret of the wealthy. The main difference between the 10% that have the money and the 90% that don't. They make the system work for them instead of them working for the system. Starting your own small business is the first step in moving from the 90% to the 10%. No it doesn't happen over night. But if you keep doing what you're doing nothing changes in your life. Moving from the 90% towards the 10% requires making some changes. Starting your own small business is the first step. Let us look at our example household under different circumstances. Let us say they've worked a few years part time and established a home based business making $12,000 per year. Mom or Dad now stays at home. The other spouse still brings in $25,000. Total income $37,000 minus $5,000 in business expenses (the family has taken a few trips promoting the business together) =$32,000 in taxable income at a reduced rate of 20%=$6400 in taxes =$25,600 in disposable income. No daycare, no second car, someone always home with the kids and less stress. Not a get rich scheme but 90% of the millionaires started with a small business in North America. Could you be one of them? Oh and by the way if you're household income is $100,000 + you need the tax breaks more than the $50,000 household.

Sounds good but I know nothing about business. Where would I start?

Remember that's what this article is all about, helping you beat the system based on my 30 years experience and helping you find a niche that you would enjoy based on my years of trial and error. There are lots of opportunities that work but it has to be something you would enjoy and can start part time with out a lot of up front investment. The first step is to take an honest assessment of your own skills and abilities. Every achievement only comes with an honest work ethic and the ability to learn. You also have to make a commitment to that project. You will also require the self discipline to work with out a boss. Many employees have a problem with that. You may have to change your whole mind set from employee to entrepreneur. The best book ever written to help you do that is "Think and Grow Rich" by Napoleon Hill. I have that book as an e book and will send it to you for free, just email me at with subject line "e book". The primary purpose of this article is to motivate you to make a change in your life. Success only comes with change. You can be successful. You need to understand the system, how it works and realize, IT'S NOT WHAT YOU MAKE BUT WHAT YOU KEEP THAT COUNTS.

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