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By Russell D. Longcore
I think there are a couple of conclusions we can glean from the national elections just concluded. First is that a billion dollars got spent on campaigns and nothing changed. Mr. Obama is still in the White House. The Democrats still control the Senate. The Republicans still control the House of Representatives.
Second…the business community still controls them all.
Wage-earners have almost no deductions available to them. And in the next four years, the Obama Administration and Congress are coming for many of your deductions in a desperate attempt to steal more revenue from ALL Americans.
For most people, there is no expense in their working lifetimes greater than the amount of various taxes they pay. So, tax planning and tax preparation can have the greatest effect on your income. Just a few hours of effective tax planning can put tens of thousands of dollars back into your bank accounts. Over a lifetime, that could translate into hundreds of thousands…even millions. It could also mean the difference between the constant struggle of monthly income shortages versus living a lifestyle you enjoy.
Government is supposed to protect individual liberty and property rights. Today’s government does little or none of either. Washington DC is a massive spoils system. The best benefits go to those who have the best lobbyists and lawyers.
Taxation was supposed to be a means whereby revenue was collected to pay for the activities of the government. But over time, the tax code became a system of rewards and penalties, and ways for businesses to cock-block their competition.
The IRS code is a hopelessly broken tax system that, over the centuries, was written by business for business. The IRS code favors businesses. There are hundreds of tax breaks, tax credits, tax deductions, tax deferments, tax incentives, etc…designed specifically for business. And I don’t mean just mega-corporations.
Even the smallest part-time, home-based business enjoys tax benefits that the employee wager-earner will never get. Here is a list of only a few benefits a home-based business enjoys:
• Deduct a portion of your property taxes.
• Deduct a portion of your mortgage payment.
• Deduct a portion of your mortgage interest.
• Deduct a portion of your utilities.
• Deduct a portion of business lunches.
• Deduct mileage on your car incurred in business.
• Deduct a portion of your car payment.
• Deduct a portion of your car maintenance expenses.
• Deduct promotional expenses for your business.
• Deduct all or part of your phone bills.
• Deduct insurance premiums for auto, home, health, life, business.
• Deduct travel expenses for business purposes.
• Deduct business gifts.
• Your clothing might be deductible.
• Deduct expenses for equipment like computers, software, supplies etc.
• Deduct expenses for ongoing training.
• Deduct expenses for tax preparation.
• Deduct expenses for legal representation.
• Deduct office furniture.
• Vehicles are deductible in certain instances, and you can depreciate them.
• Deduct depreciation on all the rest of your business equipment.
• Set up a personal retirement plan and put away much more than an IRA allows.
• Hire your kids and shield income from taxation and Social Security payments.
• Deduct rent or lease payments for equipment and/or real property.
That is only a partial list, friends. And the IRS code does not say you have to make a profit. You can even deduct your losses in some cases.
So…what should you do? Should you fall into the resentment fomented by the Mainstream Media of the 97% against the 3%? That keeps you broke and it will not change the system. It certainly won’t change your financial outcomes.
The old saying still goes…“If you can’t beat ‘em, JOIN ‘EM!”
Many people dream of firing their boss and starting a business. But if you have not ever owned a business before, there is a steep learning curve. That is why some folks choose a franchise because training is included. Remember…you had to get trained when you started your job, didn’t you? You must get training to become a business owner. Few of the characteristics that make a good employee translate to being a good business owner. That is why starting a business from the comfort of your home on a part-time basis makes the most sense. This gives you time to learn and grow and make the transition from follower to leader. Still, the business that you choose can make you or BREAK you.
Only one out of five small businesses that make it to their fifth anniversary are still in business. That means that 80% of new businesses FAIL in the first five years. That failure means losing money, investments vanishing, financial pressure, stress and the shame you feel from a failure in business. And if you choose the wrong kind of business, you could lose your business through no fault of your own if your marketplace dries up or the economy slows down.
So the business you choose for your home-based business is a crucial decision for your future and the future of your family. If your new business is successful, you can change your destiny and your family’s destiny for the better. Better schools for the kids, college educations, nicer homes, nicer cars, better vacations, more charitable giving. Choose unwisely and fail in business, and you will still change your destiny. Only it won’t be for the better.
The three most important things for your business are:
1. Choose a highly consumable, life-essential product or service. First let’s talk about the “highly consumable” part. Would you rather sell a product that people use every day, or a product that they seldom have to buy? Think about the difference between a business that sells electricity and a business that sells cars or caskets. Now what about the “life-essential” part? Think about the difference between selling mobile phone service versus selling bowling balls and accessories. You cannot go a day without your phone, but you could go a lifetime without bowling.
2. Have a large, growing, inelastic market demand. A large market demand needs no explanation. But you also need a growing market. Selling pagers 20 years ago was hot. But try even finding pagers today. Don’t put your business on the tail end of a trend. And what about that word “inelastic?” It means you want your business to be steady, and not affected by boom and bust cycles. Ask homebuilders or realtors about what happens to their incomes when a boom ends.
3. Duplicatable. If you have a home-based business that relies upon your efforts, then any vacation you take, or illness you have, costs you money. You can hire people in your business, but having employees brings its own set of problems. Think about what happens to a real estate broker. He hires new people, trains them, helps them be successful. But after a while, his new people want to be brokers, just like he is. When they do become brokers, they become his competition THAT HE TRAINED. The best solution is to have associates that work with you that have the same business opportunity that you have. Then when they are successful, you still make money. This is commonly referred to as “Network Marketing.”
Those three characteristics in a home-based business are really hard to find. But they do exist!
There are two videos directly below that I offer to you. The first video talks about my Energy business. The second video talks about my other product in Social Commerce. Please look at both of them.
Then ask yourself… “Who Wouldn’t Want a Home Based Business Like This?”
Social Commerce Video
Choose one, or choose both. Then come join us!
In closing, remember this:
Your are either working for your own dreams or you are working for someone else’s dream.
Dump DC: Six Letters That Can Change History.
Copyright 2012: Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.