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Owning Your Business

 The Advantages of Owning Your Own Business

Before beginning your business, let's look at the advantages to owning one.
Managers in corporations of the real world aren't going to help you up the rung of the ladder to success at the expense of their salaries. Whereas, as an Independent Beauty Representative, you can go as high, as far, and as fast as you want, to achieve success in your own beauty business.
Your sponsors will have all the tools, materials and support necessary to help you achieve your goals in your business venture. If you don't succeed, they don't.
Many Independent Beauty Representatives have surpassed their sponsors in the business, in retail profits. And with the advent on on-line purchasing, the sponsoring rate has already increased 100%. With all that is happening, we can be assured of more retail profits, performance bonuses, leadership bonuses, and more representative discounts. No other business can offer more.
 Business Startup Checklist
Obtain publication 334, "Tax Guide for Small Business from the IRS and read it thoroughly. Choose a business idea based on your interests, abilities, and the amount of time you want to spend.
Choose a business form - sole proprietorship, partnership, or corporation. Most Independent Beauty Representatives use Sole Proprietorship.
Set up your business record keeping system, You can find appropriate ones at Business Supply Stores or ask your Sponsor for information on ordering one from your beauty line.
Choose a business name. If your name is included in the business name, most states do not require you to file under the fictitious name statute.
Set up an interest bearing business checking account. The simplest account and least expensive is " John Smith, D.B.A. (doing business as) Smith Industries.
Print Business Cards and/or Flyers.
Offer your product or services for sale to friends and relatives. (I came up with a list of over 100 contacts).
Learn everything you can about your business, by reading the associated books and magazines, listening to tapes and watching videos that are readily available.
Get business educational materials from the Small Business Administration and from your sponsor.
Have Fun! It's only work if you don't like what you are doing!
 Record Keeping
Keeping accurate records and receipts of all transaction is most vital to your business. It will save you time and money when filing your income tax.
The following expenses may be deductible for your business.
Using appropriate business forms for recording them is a time saver.

Merchandise Materials purchased for resale or business use includes:
Shipping/handling
Service charges and sales tax
Advertising Includes signs, newspaper, radio, etc.

Professional Fees includes:
Accounting
Bookkeeping
Legal and tax preparation
Business Cards Stationary printing
Bank Service Charges on your business account

Business Phone used exclusively for business includes:
Basic charge and long distance charges
Business calls made on your personal telephone.
Dues/Publication Renewal fees for the business, associations and organizations
Subscription to business publications.
Dues to Country Clubs and social organizations need to be 100% in use as a business entertainment expense
Entertainment/Meals Business related meals and entertaining customers (50%)
Business Support Material Tapes, literature used in the business only
Interest on Credit Cards and other business indebtedness on loans
Licenses - any licenses required to conduct your business
Literature and Sales Aids Catalogs, kits, demonstration literature or Samples.
Office Supplies Pens, pencils, stationary, ledgers, and printer paper needed to maintain your office.
Postage Shipping and freight expenses required in selling product
Public Transportation and local travel, air travel, business travel expenses other than auto.
Childcare/Baby sitting not deductible, but may be entitled to a tax credit for the amounts paid in order for you to conduct your business.

Auto Expense
Method 1: Total mileage for the business use portion times the standard mileage rate (mileage rates subject to change yearly),  or
Method 2: Total repairs and upkeep of auto. Such as gas, oil, tires, tune-up, repairs, insurance, car washing, licensing, inspection fees (at a 50% business use rate) Both methods include tolls and parking fees.
Your Principal Place of Business
 Your Home Office Deductions
Square Foot Method (how much square footage does your home office use) can be used to determine your deductions: 15% of your home office and storage expenses, including depreciation will be deductible.
Number of Rooms Method for example, if you are using one room out of five in your home and they are all approximately the same size, you may take a 20% deduction for your home office and storage expenses including depreciation.

The deductible expenses using the above methods:
As a Home Owner Electricity
heat
insurance
interest on mortgage
maintenance
repairs
taxes
trash hauling
professional cleaning of your office.

As a Renter:
electricity
heat
insurance
rent
trash
maintenance
 Depreciation
Computers, printers, media, office machinery, office furniture and accessories, tools and motor homes (if used as the principle place of business or a percentage use) See your tax planner or use a tax preparation program for depreciation deductions as they may depend on usage, mileage, square footage and various recovery periods to determine.
 Continuing Your Tax Deductions
An activity is considered a business as long as it shows a profit in any three out of five years.
The first two years are used by the IRS as a "ruling period" in determining whether your activity is a viable business.
At the end of two years, if you still do not show a profit, you can do any of the following:

Put more time into making your business known by talking to more people via in person or on-line.
File an IRS form called "Automatic Extension of Ruling Period", which gives you an extra year to show a profit.
Continue to run your business at a loss, but be prepared to show the IRS that you have the intent to make a profit by putting together a business plan.
Remember you don't need to operate your business full time to take tax deductions and there are no requirements on how much money you need to invest.
 Guidelines for Home Based Businesses

It's important to do a lot of research before starting a home business.  Always check out the benefits and the ways the company may beat the competition prior to signing up .

Here's an example of some questions to ask yourself:
1.
Are there unlimited earnings?
How far do you want to go with it? Is there a greater potential of earnings then with another company? Are there other avenues to pursue for money makers. Look for other earning opportunities within the company such as: fundraisers, recruiting, advanced training, business web sites, wellness training. Are you able to market it without restrictions?
2.
Do you have flexibility with your home-based business?
Are you able to work around your family (which comes first) and still give them the quality time that they need. Or do you have to be out most every evening with party plans?
3.
Can you earn as you learn?
Can you go at your own pace and not have to read umpteen books and attend as many meetings? Are you constantly hounded to sell more product and have more parties?
4.
Do they represent a leading company?
How many people have heard of the product? Is there a market for it in your area? How expensive is it to the average person?  If it is expensive, you've eliminated many people from your possible baseline customer list.
5.
Do they offer high quality products?
Does the company offer a 100% guaranteed return policy? Or do you have to jump through hoops to return the product(s)?
6.
Is there a 100% satisfaction guarantee?
Alot of times, that is up to the person and how they help their customers though ordering and shipping problems. Are the products worth the cost, or do your customers constantly complain?
7.
Does the company offer new and innovative products at reasonable prices?
Do they seem to have the same products day in and day out? People may want a change on occasion. Look for a company that offers more than one type of product to serve the general population, such as fragrance, gifts, body care, nail care, products, unique products and holiday specials. There is more of an audience there then with just one or two product lines.
8.
Is the company known for it's great reputation?
This could be a positive or negative factor depending on the company.
9.
Does the company care about it people?
Does the company offer training tools and seminars to expand your business. Are the samples and products they offer to you at minimal cost? Do they send you freebies during the course of the year?
10.
Do they offer online opportunity?
Many businesses now offer sites for their people. Do the sites offer various ways to order so that you earn maximum profit? Do the sites keep a status of your customer, their orders and statements. This type of site makes it easier to order for your whole customer baseline.
11.
Does the company offer other benefits for it's people. Some benefits to look for are: Fast track to success for your hard work, residual income, discounted business aids and merchandise.
12.
Does the company keep you informed?
Does the company have communication vehicles in place that will help to keep you up-to-date on all new items of interest to you as a representative of their company: ie., special website, newletters, magazine, emails, etc?