Question about business
Opening a business and wondering what types of expenses I can write off?I am opening an online business for website design. (set up as a LLC, I'm the sole owner) Should I start keeping receipts of all business related expenses? Or would my business qualify as a hobby if I don't make a certain amount of money in the year that I'm filing.
What types of things can I write off onto my business? (dinners, gasoline, etc.) Do I need a seperate business credit card/bank account for the expenses?
Do I have to accept payments towards the business's services through a corporate account, or can they make the check/payment directly to me?
Want to increase the sales price of your business by two or three times? Who wouldn’t? Do you realize that of all the businesses that are put on the market, seventy percent of them never sell? Follow these 3 steps and no only will you sell your business but you will increase your sales price at least two or three times.
1. Put in Systems. When people call your business, which answers the phone? Do they say the same thing each time and follow a script?
When the customer comes in, do you create a true experience for them? Are they greeted the same way each time so the experience is recreated?
When you meet with the customer, do you use the same words to close the deal and get them engaged? Or do you just wing it?
Once you have the business, do you do it according to a checklist every time? Are the products or documents used the same way every time? Do you produce the same high quality work product every time without fail?
Once the business is completed, do you follow up with your customer once a month? Will that contact happen even if you are not involved? Has each contact been planned out in advance?
Do all of your employees know their jobs and one other person’s job also? Do they have scripts and checklists? Do they know exactly what you expect of them and how you measure their performance?
How do you measure your company’s performance? Do you know how many leads were closed? Do you know the return on investment from your advertising? Do you know your payables and receivables and check them weekly? Do you have regular financials that are accurate? Do you get flash reports every week so that you can review your whole business in thirty minutes or less?
Guess what questions a prospective buyer will ask when they start looking at your business. There are six systems that every business must implement. With them, your business is an investment. Without them, you can cut your sales price in half or more.
2. Prepare Your Business For Sale. Every business will be sold. No owner lives forever. Whether the sale is to family, employees, other stockholders, or third parties, the business will be sold. The failure to sell will probably end up as a liquidation but even that is a sale of sorts, just not the one you want.
When a person is ready to retire, they begin to think about selling their business. Unfortunately, the preparation needed to start two or more years prior in most cases. The thought of retirement brings on a natural beginning of not working as long hours as before. Usually the result is a decline in income. If you want to sell a business, do it when the income is rising, not falling.
Every business has a natural cycle when sales are rising and when sales are falling. The trick is to sell when sales are rising. If you sell when sales are falling, your price is falling also.
3. Form A Good Sales Team. If you were buying a business, would you prefer one the regular consults with its lawyer and perhaps its accountant or one that only gets advice when in trouble? Would you rather have a business that plans in advance and avoids trouble or one that hops from one fire to another?
The buyer for your business thinks just like you do. You need to prepare in advance and have good advisers that look out for you regularly. Buyers know that means your business will be easy to check out for due diligence and is unlikely to have a minefield with surprises.
Guess which business will sell for more?
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Chev
on February 19 2010
Hi,
i have found a site to be usefull, just check this out
JJ
on February 19 2010
you've got it back to front. First you look for a niche in the market that needs to be addressed or you note a shortage of demand. If you are not addressing these keep your money in your pocket.
Business opportunities come from hobbies expanded, new technology (e.g. become the Blue Ray expert), niche markets e.g. something a cultural group wants or needs, changes in law create opportunities for experts to emerge, changes in demographics e,g, more children in the area.
Look around. Ask people around you.
How to start will depend on the idea – some businesses start part time until they get enough customers to move on – some start as web based businesses and others just have to bite the bullet and go bigtime. Whatever you do please do a business plan before you start – work out the details on profitability, time needed to make it work etc before you commit any money to the idea.
Need a great business plan format try. http://www.australiansmallbusiness.com.au/Easy-Business-Plan-Pack-p-16143.html
guzen
on February 19 2010
Well Said!!
nacao
on February 19 2010
China is really taking this advice to heart. Even now the Chinese government is investing heavily in the African oil and minerals sector, using their expertise to help African countries upgrade their infrastructure (roads, electricity, pipelines etc.), and providing cheap capital for African countries to exploit and grow, thereby making many friends and allies in the process. China is helping them grow, gaining strong geopolitical influence and privileged access to growing markets.
corpo
on February 19 2010
You’re an idiot.
Shut up and get out.
urbantool
on February 19 2010
chinnyization, you have brashfully expressed your thoughts (and I dare say without proper reason). I agree with Bladen12345 that your argument is very weak. You obviously have misunderstood Ngozi; she is making a point on the power of foreign direct investment. I am sure that she pointed out that african governments have their failings, but her aim is to illustrate the wisdom of higher FDI as a better means of aiding africa as opposed to ‘Charity Aid’.
rails
on February 20 2010
The Africa of put the white man out and let the chinese in and embrace the muslim and now they want some chinese out and the muslims are slaughtering the black africans and as always the rich forget the poor that is world wide
Austinite
on February 20 2010
You can't post a Proposal for Sale of Business here. It is a comprehensive document similar to a business plan with dozens to hundreds of pages. Contact a broker like VR Business Brokers and see if you can get help. Yours is a unique business driven by personal contacts and is not easily sold.
Mikelo
on February 21 2010
How about a book store, if you are looking retail?
I cant say if it would work in your town, you need to do marketing research to see what would succeed in your town.
Also in business .. Location, Location, Location is VERY important to success .. not only do you need the right business, you need the right location ..
Passion, YES .. you do have to work long hours but passion because you believe in what you are doing.
I work from home and have the utmost compassion and belief for what I do, I believe that is what brings me success ..
If you don't like books, don't like to read .. then a book store probably wont make sense. Did deep .. Only you know what you really want to do.
GL!
SarahR
on February 21 2010
Hiiiiiii..
I think you have to choose the Marketing section in Human Resource Management(HRM) because in marketing you get the nice job in the good reputed company on a high post..
The Invisible Woman
on February 21 2010
The requirements vary according to your state. Call the business license office for your county and just ask them if you need a business license to operate an internet store. I live in Georgia, and in my county, you do.
Ken
on February 21 2010
You need to keep accurate records when running a business. This will be your best defense if you ever get audited.
For IRS purposes, you need to make a profit every 3 out of 5 years to have the IRS prove that you are not running a business. Otherwise, it is up to you to prove that you are running a business and not doing a hobby. You can prove that you are running a business by keeping your business accounts and personal accounts separate.
You can write off any legitimate business expense including dinners with clients, car expenses, equipment, etc.
Having a separate checking account and credit card is a good idea. However, it isn't necessary. You can comingle your business and personal expenses using your personal accounts. But, if you do this, then it will be harder for you to prove that you are running a business.
For your revenues, you don't need a corporate account to make you deposits. You just need to make the deposits in your separate account that you use for business.
You can read Publication 334 for more information.
psychic
on February 22 2010
Sorry Mrs Ngozi, you’re well educated, but Nigeria is a s***hole. The corruption is deeper than a black hole. Maybe, just maybe, if Nigeria started with something as little as (um… i don’t know) STABLE ELECTRICITY???
I don’t know how a nation is meant to develop, let alone tackle corruption if the electricity is constantly being switched off on random daily basis. Start with a stable power supply and then i’ll take you seriously.
truth
on February 22 2010
You have just proven my point.Two sentences to show that you have nothing more useful to say and I suppose this discussion ended when I said BYE Earlier.Wishing you Goodluck and hope you somehow get out of your IGNORANCE,DENIAL,ARROGANCE,AND SELF HATE.I STAND BY MY OPINION,NIGERIAN GOVT.OUGHT TO DO MORE!!! IF THAT ANNOYS YOU WELL GET OVER IT AND STOP PRETENDING THAT THEY ARE DOING ENOUGH.I STRONGLY SUGGEST YOU FIND A LIBRARY AND EDUCATE YOURSELF A LITTLE MORE.SINCE BUYING BOOKS MAYBE EXPENSIVE.
earthlink
on February 22 2010
My reasoning may hold very little significance on HERE,but at least people like you are reading it.Whatever you may think might be better, doesn’t change the fact the TALK IS CHEAP!!! I LOVE NGOZI FOR WHAT SHE STANDS FOR,BUT IF SHE REALLY IS DIFFERENT FROM ALL THE OTHER CROOKS THERE HAS TO BE SOME OBVIOUS RESULTS FOR WHAT SHE STANDS FOR!WE DON’T NEED ANY MORE TALKS,and I don’t need anymore talks with you,SINCE YOU SEEM NOT TO REALIZE THAT ANY TALK WITH NO RESULT IS OBVIOUSLY CHEAP.GOODLUCK & BYE
jpro
on February 22 2010
Your reasoning is fairly weak. Ngozi explained it well and I think a lot of people understand, because I sure did.
What you need to come to terms with is that your views hold extremely little significance here.
Wayne R.
on February 22 2010
Yes, the courses you speak of will help you to become a Business Analyst.
A BA can be on the client side or the IT side. If on the client side, they are interfacing with work group domains that process the work and review what they need. They generate requirements and then work with the IT side to update or generate processes and applications to fullfil the business needs.
If you're a BA on the IT side of the house, then you're taking all the requirements and developing processes and application solutions. Your job is to work with the client to generate a business solutions document (there are many names for it) and get signoff. Then, you need to make sure that solution becomes reality by working with systems analysts, programmers, and testers. You're generally responsible for the delivery of the solution. Although, if the solution revolves around process changes with other work group domains, you normally work with a PM (Project Manager). Never the less, you have end to end responsibilities for the IT delivery to insure the client gets what they need (and paying for).
With the offshoring of work to cheap labor, to remain associated with software development, the BA role is a good profession.
cooolioooo
on February 23 2010
business school is the right field to study, if you choose your college carefully, some have an entrepreneurship track/program