Tax Preparation Blog

Title: 

The 12 Most Common Mistakes New Entrepreneurs Make & how to avoid them

Word Count:

1523

Summary:

A large number of people who start their own business do not realize how much work and time will be involved. They fail to carry out any primary research and as a result become quickly overwhelmed. 

Perhaps the first question to ask yourself then is whether you are in fact ready to start your own business. Do you have an entrepreneurial mindset?  Are you committed to spend all the time you need to succeed? And are you ready to take massive action?

Keywords:

#Arlington_Tax_Preparation, #Tax_Preparation, #Tx_Tax_prep, #Texas_Tax_Preparation, #Arlington_Tax_Prep, #Arlington_TX, #Tax_Prep, #DFW_Tax_Prep, #Tax_Filing, #Taxes, #Lewisville_Tax_Prep, #Lewisville_Tax_Preparation, #DFW_Tax_Preparation, #Arlington, #Tarrant_County, #Reduce_Taxes, #Tax_Refunds, #Pay_Taxes, #Tax_Help, #Bookkeeping, #DFW_Bookkeeping, #Investing, #tax_bookkeeping, #DFW, #Texas, #North_Texas, #Filing_Taxes, #1099, #W-2, #W-4, #W-9

Article Body:

A large number of people who start their own business do not realize how much work and time will be involved. They fail to carry out any primary research and as a result become quickly overwhelmed. 

Perhaps the first question to ask yourself then is whether you are in fact ready to start your own business. Do you have an entrepreneurial mindset?  Are you committed to spend all the time you need to succeed? And are you ready to take massive action?

At first, you will have to wear many different hats; you will be the CEO, the general manager, the accountant, the salesperson, the computer technician, the secretary, the receptionist. You must therefore prepare yourself because there will be days when you are disappointed, depressed, or frustrated. You have to realize that success will not happen overnight. And it may take a year or two before you achieve your expected results. 

To avoid these disappointments, here are The 12 Most Common Mistakes New Entrepreneurs Make & How to Avoid Them:

Mistake # 1 - Failure to spend enough time researching the business idea to see if it's viable 

Numbers of new entrepreneurs have often failed because they were not truly interested in the business; they were more interested in making money. It is important to start something that you really like, because you will be spending a lot of time on it. 

Your assignment - Spend all the time you need working on your business plan, which should include: your mission statement, your business strategy, research on your target market (demographics), industry analysis (size, economics, trends, success factors, challenges, etc.), your marketing plan, your financial projections and sales.

Mistake # 2 - Failure to determine whether the business actually adds value

The most sustainable businesses, those that withstand the test of time, provide value by performing a service that people need.

Your assignment ñ Make sure your products or services provide value and benefit to your clients. Be ready to solve any business problems that your clients may have.

 

Mistake # 3 - Failure to gain a complete and total understanding of the business

Every business has drivers; hot buttons and key levers. What drivers exist in your business?

Many business leaders, executives and management consultants would say that success largely depends on attention to detail.

Your assignment - Understand all the aspects of your business, and of particular importance, know how to present them in an easy and simple manner.

Mistake # 4 - Failure to describe the business in only one or two sentences

No doubt you have experienced the entrepreneur whose business is so technical or complex that he cannot explain the concept in plain English. Or, it takes 20 minutes to convey the purpose of the business. What value or benefits does your business offer?

Your assignment - Have an efficient 15 to 60 second elevator pitch that introduces you, your business’ mission, focuses on the benefits you provide and makes you and your business memorable. 

 

Mistake # 5 - Failure to conduct the primary research

There are many great ideas you can latch on to, but the key in business is to make sure the idea, central theme or mission of your business venture can attract customers and generate sales and profits.  A great idea in and of itself is not enough to start a business.

Your assignment - Take the time to gain experience, study the business, understand what makes the business work (how to serve the customers and generate profits) and what leads to losses. 

Mistake # 6 - Failure to contact professionals who can help you get started 

Numbers of new entrepreneurs ask their friends and family for advice when starting a new business. The problem is that they often ask people who have never started a business; so in reality, these people are not in a position to offer sound advice. 

Your assignment - Get a mentor or two. Surround yourself with experts who possess skills and expertise that you lack. Team up with professionals who can complement your strengths and cover for your weaknesses. 

Mistake # 7 Failure by underestimating financial requirements

Do you know how much capital you need to start your business? Do you know the market, did you calculate your cost, did you project your sales, do you know the number of clients you need? Do you know how long it will take before you get your first benefits or before you will run out of money? 

Your assignment - Invest the time to work on ALL aspects, especially the major ones, of your business before you start.

Mistake # 8 - Failure to make marketing a priority

Many new entrepreneurs start their business without determining their target, niche and demography first and as a result have failed to attract any clients. Marketing should be one of your top priorities. Devising a marketing plan will help you determine how to promote your products or services and create a system that will generate more clients for your business.

Your assignment - Dedicate a good portion of your time and energy to working on and implementing your marketing plan. Set up a meeting with yourself once a week to work on your marketing plan and whatever happens never cancel this meeting; it is essential for your business. 

Mistake # 9 Failure by under-budgeting the marketing costs

Today the world is overcrowded with businesses and probably a number of those in your market perform essentially the same functions as you do. This means that you have to differentiate yourself from them by making your business stand out. Publicity is essential to your livelihood; otherwise you will not attract any customers.

Your assignment - Make sure you have a strategy that puts the word out there. Provide adequate publicity, business cards and marketing materials that project a professional image. Do not try to save money on these; they are reflecting your business. A cheap business card or flyer will not make a professional impact.

Mistake # 10 - Failure to focus on the business

Many new entrepreneurs are energetic and enthusiastic people (which is essential to success), but they can also be overly optimistic and pursue too many targets and directions at once. This typically results in mediocre results. Define your business’ mission as succinctly and narrowly as possible. When you move in too many directions at once, especially in the early days of your business, you are likely to fail to execute anything correctly; so you end up working ‘on the business’ instead of ‘in the business.î In other words, you will spend all your time operating each task on your own. You won’t have the time to sit back, and decide on the best way to develop your own marketing plan, create new products, or improve your services. 

Your assignment - Know you goals. Put them in writing.  Make sure they are realistic, specific and measurable and that you set yourself a deadline to achieve them.

Mistake # 11 - Failure by over-marketing

Once you have developed your product or service and have perfected your offering, you may think that your offering is the best in your marketplace. But unfortunately, to be efficient you can’t sell to everyone. You need to select a specific target market and stick to it. By doing this you will have a more efficient message and will more likely achieve success much sooner.

Your assignment - Carefully determine your niche, your demography, your ideal clients, where they go, what they read, what their hobbies are, etc. Once you have a full understanding of your client’s profile you will then have a full understanding of how and where to find more of them.

Mistake # 12 - Failure to follow-up with clients

Many new entrepreneurs are often so desperate to constantly find new clients that they neglect the clients they already have and in fact end up losing business. Statistics show that it takes seven more interactions to secure a new client than to sell more to a repeated client. So develop and maintain a useful and organized follow-up system to offer new services to your clients and do not let them slip away.

Your assignment - Constantly and consistently communicate with your current clients. 

Start a newsletter, offer special sales, create new products to up-sell, join affiliate programs if you do not have your own products. People who have already bought from you will appreciate it when you recommend other products. Statistics show that up to one out of three clients will take advantage of this new offer. It is essential to build a very, very special relationship with your clients. They are your best audience. 

If you have a business idea, but are unsure how to get started, or already own a business, but have not yet achieved the results or success you were hoping for, check out my book: "Start Your Dream Business Today! The Proven 11 Steps to Start and Grow Your Own Business", a simple yet informative and easy to follow step-by-step guide to everything a new entrepreneur should know when starting a business. 

Get it today by going to www.StartYourDreamBusinessToday.com. You will also get lot of other ideas and resources to help YOU Start Your Dream Business  and I will save you time and lot of money, as I did for my clients.

© 2006 Biba F. PÈdron

Title: 

The Most Unusual Businesses

Word Count:

548

Summary:

Unusual businesses, from making palm leaves into scorpions to collecting dead deer.

Keywords:

#Arlington_Tax_Preparation, #Tax_Preparation, #Tx_Tax_prep, #Texas_Tax_Preparation, #Arlington_Tax_Prep, #Arlington_TX, #Tax_Prep, #DFW_Tax_Prep, #Tax_Filing, #Taxes, #Lewisville_Tax_Prep, #Lewisville_Tax_Preparation, #DFW_Tax_Preparation, #Arlington, #Tarrant_County, #Reduce_Taxes, #Tax_Refunds, #Pay_Taxes, #Tax_Help, #Bookkeeping, #DFW_Bookkeeping, #Investing, #tax_bookkeeping, #DFW, #Texas, #North_Texas, #Filing_Taxes, #1099, #W-2, #W-4, #W-9

Article Body:

Since childhood I've had an interest in unusual businesses. I grew up with four brothers, and when it was time to vote for which television show we would watch, I sold my vote to the highest bidder. You could call that the business of politics. I collected the paper-wads that fell all over when my brothers had their wars, and then sold them back to them for a couple cents each. I was a war profiteer in the paper-wad wars. I also sold candy out of a hollow book in school.

My business activities were more conventional as an adult, but I still loved to hear about and read about the more unusual businesses. Sitting around a fire in an Arizona desert, I once talked to a man who sold used stuffed animals on the side of the highway. He claimed he sold $3000 worth his first month.

The Most Unusual Businesses

Then there was the guy I talked to in Grand Rapids, Michigan, who collected the bodies of dead deer. The county needed the deer carcasses off the roadsides for health reasons. They contracted with this guy for $25 per body. I'm not sure how he disposed of them, but maybe his other business was providing meat to dog food companies.

When I was living in Traverse City, Michigan, someone started a dog poop cleaning business. Want the dog without the responsibility of cleaning the yard? Call A-1 Pooper Scooper. I'm not sure if this would be better or worse than the dead deer collecting business.

Right here in Tucson, Arizona, there is a man who takes leaves from palm trees and twists and turns them into amazing animal sculptures. He sells these for anywhere from $2 to $12 in the street. The palm-leaf scorpions are the best. He just grabs leaves from the nearest palm tree and he can sell dozens of these in a day.

Unusual Online Businesses

Maybe you remember a few weird businesses from back before Ebay got all their rules. One woman made thousands per month selling used panties to fetishists. She bought new panties for her friends, who got them for free as long as they returned them to her unwashed, trading them in for the next new pair. The used and unwashed panties sold for $10 or more on Ebay auctions and they sold fast.

Perhaps you have heard about the online fantasy role-playing game called "Runescape." It has four million players now. What you might not know is that in addition to buying "virtual real estate" in the game, and earning online gold pieces, you can buy these game things for real cash. There are Runescape entrepreneurs who sell their online houses in the game for hundreds of real U.S. dollars. I think it would start to get confusing - what is real here and what isn't?

Then there was the guy in who decided last year to finance college by selling one million pixels of advertising space on his web page for a dollar per pixel. You had to buy a minimum of 100 pixels and you could have any image you wanted linking to anywhere you wanted. He succeeded in selling all one million within a few months. Maybe it's time for me to get back into unusual businesses.

Title: 

The Risks of Entrepreneurship

Word Count:

548

Summary:

The "spark" for many entrepreneurs is seeing an opportunity that does not yet exist. But, no matter how innovative your idea, the competition is always just behind you.

Keywords:

#Arlington_Tax_Preparation, #Tax_Preparation, #Tx_Tax_prep, #Texas_Tax_Preparation, #Arlington_Tax_Prep, #Arlington_TX, #Tax_Prep, #DFW_Tax_Prep, #Tax_Filing, #Taxes, #Lewisville_Tax_Prep, #Lewisville_Tax_Preparation, #DFW_Tax_Preparation, #Arlington, #Tarrant_County, #Reduce_Taxes, #Tax_Refunds, #Pay_Taxes, #Tax_Help, #Bookkeeping, #DFW_Bookkeeping, #Investing, #tax_bookkeeping, #DFW, #Texas, #North_Texas, #Filing_Taxes, #1099, #W-2, #W-4, #W-9

Article Body:

The "spark" for many entrepreneurs is seeing an opportunity that does not yet exist. Ted Turner, for example, launched CNN because he perceived that people wanted more television news than they were being offered. It took a lot of patience on Turner’s part to realize the vision, but he had read the market in a way that few "experts" did at the time. 

In realizing the promise of CNN, Turner demonstrated another facet of the entrepreneurial spirit, persistence. There are a lot of bright ideas that never reach fruition; taking a "raw" idea and converting it into a successful business model is very hard work.

And that work never stops. No matter how innovative your idea, the competition is always just behind you. With anything less than constant creative effort on your part, they may not stay behind you.

Are you still with me? Here is where I reveal why everyone is not an entrepreneur:

No opportunity is a sure thing, even though the path to riches has been described as, simply "...you make some stuff, sell it for more than it cost you... that's all there is except for a few million details." The devil is in those details, and if one is not prepared to accept the possibility of failure, one should not attempt a business start-up.

It is not indicative of a negative perspective to say that an analysis of the possible reasons for failure enhances our chances of success. Can you separate failure of an idea from personal failure? As scary as it is to consider, many of the great entrepreneurial success stories started with a failure or two.

Some types of failure can indicate that we may not be entrepreneurial material. Foremost is reaching one's level of incompetence; if I am a great programmer, will I be a great software company president? Attitudinal problems can also be fatal, such as excessive focus on financial rewards, without the willingness to put in the work and attention required. Addressing these possibilities requires an objectivity about ourselves that not everyone can manage.

Other types of failure can be recovered from if you "learned your lesson." A common explanation for these is that "it seemed like a good idea at the time." Or, we may have sought too big a "kill;" we could have looked past the flaws in a business concept because it was a business we wanted to be in. The venture could have been the victim of a muddled business concept, a weak business plan, or (more often) the absence of a plan. 

When small businesses fail, the reason is generally one, or a combination, of the following: 

* inadequate financing often due to overly optimistic sales projections; 

* management shortcomings, 

 -- such as inadequate financial controls, lax customer credit, inexperience, and neglect, and; 

* misreading the market, 

 -- indicated by failure to reach the "critical mass" required in sales volume and profitability, 

 -- usually due to competitive disadvantages or market weakness.

In a recent Wall Street Journal article titled "Why My Business Failed," Ken Elias cautions that "even if the concept is right, it won't fly if the strategy is wrong." Still, on being asked whether he would start another business today, he answers: "Absolutely. The experience is fabulous, exciting and the possibility of success is always there."

Small Business Owners:  The Importance of Always Keeping an Eye on Your Competition

Keywords:

#Arlington_Tax_Preparation, #Tax_Preparation, #Tx_Tax_prep, #Texas_Tax_Preparation, #Arlington_Tax_Prep, #Arlington_TX, #Tax_Prep, #DFW_Tax_Prep, #Tax_Filing, #Taxes, #Lewisville_Tax_Prep, #Lewisville_Tax_Preparation, #DFW_Tax_Preparation, #Arlington, #Tarrant_County, #Reduce_Taxes, #Tax_Refunds, #Pay_Taxes, #Tax_Help, #Bookkeeping, #DFW_Bookkeeping, #Investing, #tax_bookkeeping, #DFW, #Texas, #North_Texas, #Filing_Taxes, #1099, #W-2, #W-4, #W-9

Are you a small business owner?  If you are, whether you run an online business or a storefront business, you will need to make sure that you keep an eye on your competition.  After all, your competition and their success will actually have a huge impact on the success of your own business.

When it comes to keeping an eye on the competition, there are many small business owners who wonder why it is so important to do so.  As it was previously mentioned, how your competitors runs their business will actually have an impact on your business. For instance, if you and your competitors sell the same type of exercise equipment, but one of your competitors is having a huge sale on their exercise equipment, you may notice a slight decrease in your sales for the week. That is why it is extremely important that you know exactly what all of your competitors are doing at all times. In all honesty, if your business is a profitable one, your competitors, even the large ones, are likely to keep tabs on you as well.

Above, sales were used as an example. You will want to make sure that you keep up-to-date on any sales that your competitors may be having.  This is important because if you notice that one of your competitors is having a sale, especially on products that you also sell yourself, you may want to think about offering a similar sale.  Of course, to protect your reputation and your respectability, you do not want to have the exact same sale, but a similar one should be okay.  You should definitely use this approach if you are considered to a specialty store.  With keeping with the above mentioned example of a sale on exercise equipment, if your specialty is just selling exercise equipment, a massive exercise equipment sale from your one of your competitors may seriously hurt your business’s sales, even if it is just temporarily.

If you run an online business you may want to check out your competition’s websites and compare them to yours.  Is your small business’s website just as attractive as your competition?  Also, is it easy to navigate? If you know that one of your online competitors is having more success that you, you may want to try figuring out what they are doing right, as it may make it easier for you to figure out you are doing wrong.  As with the above mentioned monitoring sales, you are advised against stealing ideas or web designs from your competitors.  Actually, doing so could land you in hot water, as many businesses, especially large corporations, copyright their entire website content. 

If you run a business that has a physical address, instead of a .com address, you will want to think about visiting the competition to check out the appearance of their establishments.  If you are running a retail store, you will want to checkout other local retailers that can be considered your competition.  You will to examine the cleanliness of the establishment in question, as well as the way that everything is set up, product wise.  Many larger retailers have complex systems that are used to determine where products should be placed for sale in a store. Since you may not have the time or the knowledge to come up with these same results yourself, you may want to get some ideas from your competition; especially your competitors that you know are successful.  

As outlined above, there a number of different ways that you can go about keeping on eye on your competition, as well as number of different reasons as to why you should do so.  As long as you do it in style, you should not cause any problems or raise any concerns.  In fact, what you may learn from scouting out your competition may actually help make it easier for your business to be a successful, profitable one; one that will a tough competitor for years to come.

Title: 

Uneducated Tax System v. Educated Tax System

Word Count:

367

Summary:

If you are making $35,000 a year this could save you up to $10,000. That means it does not matter if you are making millions of dollars or a few thousand dollars. These strategies apply to you!

Keywords:

#Arlington_Tax_Preparation, #Tax_Preparation, #Tx_Tax_prep, #Texas_Tax_Preparation, #Arlington_Tax_Prep, #Arlington_TX, #Tax_Prep, #DFW_Tax_Prep, #Tax_Filing, #Taxes, #Lewisville_Tax_Prep, #Lewisville_Tax_Preparation, #DFW_Tax_Preparation, #Arlington, #Tarrant_County, #Reduce_Taxes, #Tax_Refunds, #Pay_Taxes, #Tax_Help, #Bookkeeping, #DFW_Bookkeeping, #Investing, #tax_bookkeeping, #DFW, #Texas, #North_Texas, #Filing_Taxes, #1099, #W-2, #W-4, #W-9

Article Body:

The line under your income on your pay stub is where these two systems differ. With the uneducated tax system, you deduct the three lines under your income and the remainder is what you receive. With the educated tax system, the first line is your reported income as with the uneducated tax system. However, the second line is the money you spent on the business, and you pay taxes on what is left. This is because when a business spends money it is called a business expense or tax deduction. Therefore, having your own business and being in the educated tax system, you can reduce your taxes by 40-70%. To break this down even further: If you are making $35,000 a year this could save you up to $10,000. That means it does not matter if you are making millions of dollars or a few thousand dollars. These strategies apply to you! A marginally profitable business can become a thriving business by applying these strategies.

A case study: One of my students, Stephanie, was making $50,000 a year. She took these strategies to her CPA who had been working with her families for years and always had her best interest in mind. He replied that although this program sounded interesting, he was already utilizing every deduction available able to her. Stephanie’s CPA agreed to participate in a conference call with me at Stephanie’s request. Stephanie’s CPA explained that she was paying $12,000 in taxes. While this was much less than the average person, she could have been paying even less. I introduced three strategies: helping her to reduce her FICA, deducting her healthcare, deducting education (both her and her daughter’s). We were able to reduce her total taxes paid to $800. In 15 minutes and with only three strategies, we were able to save her over $11,200!

I have had students save well over $100,000. Just think what you could do with that money!

We can start by converting your largest expenses into business expenses. We can teach you lesser known deductions (e.g. travel and entertainment, medical, seminars, books, etc.) and shift them over to business expenses. You pay them with pre-tax dollars and not after-tax dollars, reducing your taxable income.