Home Business Ideas and Opportunities

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Home-based Business Start-Up – Beware of Energy Rip-offs

Mindset is everything when it comes to stepping out on a limb to try something new. Everybody will encounter various obstacles because that’s just life. Everybody comes to the table with skills and experience they have acquired along the way. Some will need to learn more than others. It is not just technical (computer/Internet) or marketing and sales skills that will carry the day. In fact without the right mindset nothing else will ever have a chance.


The worst motivation killers are as follows: Being unrealistic in your expectations as far as time. You somehow got it in your head that everything is instant or miraculous and that success just comes because you want it to. Which leads to number two: When you don’t see any results immediately you will become discouraged and skeptical. When you realize you will need to really work this then you see a possible cop-out in suspecting that you are being ripped off. Now you have plenty of excuses to quit without giving it a fair chance.

Try to visualize something that has 100 watts of energy. This is your brain in business. Now you take a few watts away for each of the above energy rip-offs – Now what you have left is what you can use to promote your business. So instead of giving it 100% of your energy you will only have maybe 50% left over after all your worrying. This is like a ‘catch-22’ because the more you get discouraged the less motivated you are to promote your business. The less you do the more you fall behind until you just quit trying – which is where the actual failure is.

There is probably no truer saying to remember than ‘you can’t fail unless you quit’ – If you really think about that as long as you are still trying you haven’t failed. It is only when you stop trying that you have to admit your business has tanked. Not because the product was not good, the service was terrible, your skills didn’t meet the criteria, you have bad luck, or the whole thing is a scam. Nope. The cause of the failure was that you gave up before you really got started.

Maybe this is indicative of the fact that you really didn’t want to start your own business bad enough to actually invest yourself in it; or the need to EARN extra money just wasn’t as important to you as performing magic (wealth without work). It’s okay. File what you did learn and maybe someday you will find something in yourself that says you will give it a go again and this time you will do whatever it takes to succeed with your home business.


Self-Employed – It’s Tax Time!

Naturally if you owe money it is not your favorite time of year and if you are owed money you can’t wait to file. You can file any time after January up until April 15. Actually if self-employed you are expected to file quarterly estimated taxes. What you may not realize is you can get around this by paying a small fine each year. Some people would rather have the money on hand for emergencies and don’t mind the fine. Probably best if you can pay quarterly as you always want to save money wherever you can.

You would need to file form 1040 with Schedule A to itemize deductions. You also need to include schedule SE for the special tax they have for self-employed people. Then there is Form 8829 for use of your home for business, with which you can deduct a percentage of expenses such as utilities, rent or mortgage, etc. This all goes with Schedule C, Profit and Loss from Business.

Always consult with the IRS website (irs.gov) to be sure what is required for the tax year, as things change including allowances, requirements, etc. It really pays to have a professional prepare your taxes as they are up on all the rules, and the cost is tax deductible. If you are also employed outside the home you are paying some taxes through deductions on your job and this makes things a lot simpler as far as the schedules above. So again, it really is worth it to consult a professional tax preparer.

It will be a big help if you keep track of your receipts all year just by virtue of having a folder labeled ‘taxes’ – Some things will be online and some will be hard copy as far as expenses you may have for business. Your bank statements and statements from your online payment companies will be a big help and you should print them out for documentation in any case. Be sure that you have documentation for any deductions you take and of course your income. You can be audited for several years and are required to keep financial records for 7-years.

Since you want to figure a percentage of expenses to maintain your home office, it would also be very helpful if you had a spreadsheet where you record your utility bills, rent or mortgage costs, insurance, security, Internet/communications, medical expenses, etc. The thing is however, they give you a large standard deduction and often times you do better just paying your tax based on that. Still, you should have records for all your business transactions and file all the necessary papers for your home-based business.

Some home business models have more items that can be deducted than others – but in any case equipment, (computers, office furniture, etc), office supplies etc., are deductible. Keep in mind if you are paying dues or membership fees for your income opportunities, that these costs may also represent deductions for you along with any expenses you incur advertising or marketing your business.

Home Business Ideas and Opportunities

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