Make 2006 Your Most Profitable Year: 5 Crucial Steps for Every Entrepreneur

Many of us keep the tradition of making New Year’s resolutions for our personal lives. The New Year also has a special meaning for our companies.

Whether you are a seasoned business owner or 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 ensure that 2006 is the most prosperous year of your life.

1. If you haven’t already, take advantage of the largest tax shelter available today – the opportunity to start a small business and organize your business activities to generate multiple sources of income for yourself. If you’ve been thinking about starting your own business, but are still undecided, make the decision to take action today! With the Internet making going into business for yourself easier and more profitable than ever, there is no excuse not to take that crucial first step.
2. If you already own your own business, be sure to generate income from more than one source. This way, if changing economic conditions have a negative effect on an income stream, you won’t get high (so to speak!). If you are involved in network marketing, you will have to make a point of ignoring those who would focus exclusively on a single company (often a new company) that might not be there 5 years from now). It can and should diversify (within reason, of course!).
3. Make sure you use the most advantageous structure to operate your business. This applies to you, whether you run a traditional business, operate a UPS Store franchise, or are operating an e-commerce that does affiliate marketing. If you are operating your business as a sole proprietorship, as most small business owners do, your business is not in the most advantageous position to reap the rewards of the generous tax deductions available to small businesses. Most importantly, you are putting all of your personal assets at risk, including your home, your vehicle, your personal savings, and your family’s future. Today, it is no longer as cumbersome as it used to be to set up an alternative business structure that protects you from such risk. And with all the resources now available to the average person at minimal cost, you don’t have to incur massive legal expenses just to get started.
4. Be determined to learn the information you need to operate your business in the most profitable manner. Continuing education on the structuring and operation of your business is an absolute necessity for the entrepreneur. Even if you have an accountant or attorney on your brain team, how can you tell if they have the knowledge and sophistication to handle this properly for you? Unfortunately, many do not, and your lack of experience can cost you thousands of dollars. If your accountant or attorney tells you, for example, that you “don’t need” an LLC or a corporation to do business, you know that to run– do not leave your office as quickly as possible and look elsewhere for competent advice. Also, even if you have a competent attorney, it is your responsibility as a business owner to operate your business in accordance with government requirements governing corporations, partnerships, and LLCs.
5. Adopt a mindset that focuses on reducing taxes as a way of life The biggest single expense for most Americans is taxes. To optimize your bottom line, you need to be up to date on what expenses are tax deductible for your business and keep adequate 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 from Intuit, will help you greatly to keep track of your expenses. It can be purchased at a substantial discount on eBay.

Implementing these 5 steps may seem complicated at first, but it is worth it. Remember that when running your business, “Keep it simple” can be expensive advice. The simplest: setting up a store as a sole proprietor, operating cash, using your personal bank account instead of a separate business account for your business, and failing to track and document expenses with the proper business accounting software can be dangerous. for your finances. future.

Take advantage of the spirit of a fresh start to the New Year to implement these 5 tasks, and you will be on your way to making this the most profitable year of your life.