Business

Entrepreneurship is the single largest source of wealth in the world.  Running a business not only has the potential of making you a lot of money, it can provide you an immense satisfaction of achievement that working for someone else never can.  But…there is one point that must be made first.  Your first business may not be the right business for you.

In part 2 of Choosing the Right Business for You, we will be delving into how to do a Revenue Analysis to see if you business idea is viable, how to create a business structure, how to successfully build a team to help you achieve your success, what makes a good leader, and how to look to the future.

New entrepreneurs are often so excited to get started with their new business, that they do not research how to best set up their business to control costs.

And the biggest cost that can be controlled by the proper legal format is the amount of money that becomes taxable income under federal, state, province, local and – in some cases – foreign laws. Therefore, it is essential that the business owner understand the different tax treatments before deciding on the legal format of their business.

Accounting is a broad subject, but we are going to look at accounting from the tax man’s point of view. I’ve seen a lot of people lose money in the first few years of running their business, because they don’t have a good understanding of the Internal Revenue Tax Code.

This causes them to not keep the proper records that can be used to mitigate their tax liability. While you may bring someone onto your team like a tax advisor, accountant or payroll company to handle that part of the business, remember that it is still the business owner’s fault if a mistake is made and you need to know the law to tell if they are doing it right.

When most people think about marketing, they equate it to being told the Who, What, When, Where and Why of a product. Who is selling this great thing? What a fantastic product it is and all its selling features, That it's a limited time offer. Where you need to rush to buy it. Why it is just the perfect thing for you to buy. If you go to a traditional marketing school, you will learn how to write ad copy, produce TV or radio commercials, or design all those suggestive magazine ads. 

But let's face it. We are bombarded so much with advertising these days, that our eyes and brains tend to glaze over most of it.