Business Environment and the Entrepreneurship

Everywhere you turn nowadays, you always hear about venturing into entrepreneurship. But what is entrepreneurship exactly? It is actually defined as the process wherein a group or an individual makes an effort to pursue opportunities to satisfy needs and wants through uniqueness and innovation. Some people have the misconception that entrepreneurs are gamblers in the sense that they take risks and invest in industries that have no record of success. However, the truth is, these entrepreneurs take calculated risks that have the potential to provide them with huge returns.

The key factors you need to remember about entrepreneurship are opportunities, innovation, and growth. An entrepreneur sees opportunities in environmental trends and changes that nobody has seen before and pursues this opportunity with whatever resources he has at hand. The second theme in entrepreneurship is innovation which involves transforming and revolutionizing existing products or services to cope up with the changing global environment.
The third theme is growth; this involves the continual efforts of an entrepreneur to expand his business locally and internationally. An entrepreneur is on the constant look out on how to create new approaches to make his business grow and become a huge success.

These themes are the key factors which businesses are founded upon. The largest corporations you find today did not start out big, rather they started out as small enterprises by visionaries who want more than what is offered to them. You can see from the history of some of the most successful business today that the founders of these businesses have taken great leaps of faith and incredible amounts of risks in order to be what they are today. Wherever you turn, you see the results of entrepreneurship. But it is most obvious in internet commerce because this is a new industry. People that were unheard of before are becoming some of the riches names in the world and it is all because they have taken risks and have succeeded. So whether we realize it or not, it is the entrepreneurs who drive the global environment nowadays. They are the ones who are always seeking out opportunities and taking risks to improve our world and profit from it in return.

The business environment and even the technological advancements that are available today would not have been possible if these entrepreneurs did not come out of their comfort zone to invest in the development of these businesses. As you can see, having the entrepreneurial spirit is definitely necessary for businesses to reach greater heights and provide better and faster products and services to their clients. It is no wonder then that a lot of business enterprises are hiring young and dynamic individuals with a vision and who are not afraid to take calculated risks to ensure the survival of the business tomorrow.

Small Business Coaching – Are You Ready To Become A Success Story?

Small business coaching is hot. A few years ago the only coaches anyone talked about were sports coaches. But today, PriceWaterhouseCoopers estimates that there are 30,000 business and life coaches worldwide.

Thousands of small business owners and managers turn to these business advisers every day to improve their personal skills and business results. You can, too. But first you have to determine if you’re ready for coaching. Then you have to select the right coach.

Are you Ready?

Rosa started her business out of her home. She made money, but not as much as she felt she should. She was frustrated that she couldn’t find time for her family. That’s when a friend suggested that a small business coach would help.

That’s a typical situation. Most small business owners don’t start out using a coach. They usually come to coaching when they’ve had some success and when they know they could have more. They usually come to it when they’re ready to listen and when they need a little knowledge and a little nudge to do the right things.

The best advice in the world won’t help you if you’re not ready to be helped. So before you go hunting for a good coach, answer the following questions.

Are you ready to listen to the things you need to hear? A good coach will ask you about things you haven’t thought of and push you to think outside the box. That’s often scary.

A good coach may also tell you to change the way you do some things. That’s hard for many small business owners because it means admitting that you’ve made some bad decisions and choices.

Are you ready to take a hard look at your business? Even the best strategist can’t help you if your business can’t deliver quality to enough people at the right price. Sometimes a business simply can’t succeed because the market is too small or too hard to reach.

Are you ready to pay the price? Coaching does not come without a price. You will pay a price in both money and time. You may even realize that you need to invest in new things for your business.

There are no magic beans. You have to work at success every day. I tell my clients that “success is based on persistency and consistency, not magic.”

You’re ready if you see it as an investment in yourself and your success. Your next challenge is to find the right coach for you.

Great coaches, like great chefs and great football players, are rare. And, sometimes, even a great coach is not the right one for you. Here are some ways to evaluate:

Look for a coach who’s actually run a small business. Before I started coaching I built two successful small businesses. I’ve really “been there and done that” so I know what my clients are going through.

I also use coaches myself. The ones that work best for me have small business experience. Small businesses are different from big businesses and you need someone who understands the special challenges.

Look for an individual who’s been doing it for a while. My job is to help you know what to do, but it’s also to help you do what you know. It takes time to learn to coach well.

Look for someone who won’t nickel and dime you to death. It seems to me that there are two kinds of coaches when it comes to billing. There are the ones who charge you by the minute, hour or session. And there are those who are always accessible or available for short conversations between sessions, if needed without piling on extra charges. I find the latter works better for my clients.

Look for a person that you’re comfortable with. Successful outcomes demand a productive relationship between you and your coach. It won’t work if you feel talked down to or belittled or if you feel like your coach doesn’t care about you. If you feel any of those things, look for someone different.

Look for a someone who’s picky. The best coaches are selective about the kind of clients they work with. We expect a lot of our clients and we limit the number of clients we work with so we can concentrate on helping each one succeed.

After some soul searching and some research Rosa started working with a small business coach. It wasn’t always easy, but together they found ways to help Rosa’s business grow and help her reap the benefits of success. They took her business and life to a whole new level.

It can happen for you, too. If you’re ready, if you’re willing to embrace change and if you’re willing to pay the price, a small business coach can help you become an amazing success story.

The IRS Wants You To Make Money With Your Home Based Business

Contrary to what everybody thinks, especially W2 employees, the IRS is your friend. The IRS tax code is designed and set up for promoting small business and home based business. Only five percent of the IRS code is really written about bringing in income for the IRS. The rest is all about expenses and deductions. So 95% is dedicated to reduce your taxes!

It is awesome!

There are a few things that you need to provide the IRS to qualify your home based business, but they are mainly looking for profit intent, consistency and record keeping.

1. Profit Intent is relatively easy to prove. If it’s a hobby, like if you’re trying to turn your Saturday golf game into a business, that’s going to a bit tougher. Home-based businesses like network marketing, setting up a paint company or wedding planner or something, should be pretty easy to prove it’s a “for profit” business.

2. Secondly, you need to work your business on a regular and consistent basis. There’s no specifics on that but, even four to six hours a week, every single week should be sufficient. Of course, I recommend more than that if you are going to be serious about your business.

3. Lastly, you’ll want to keep accurate records to prove that you have income and expenses.

If you keep accurate records of expenses, you can offset other income that you have. The expenses you have from RUNNING your business, such as expenses from your office in your home based business or money spent building your business, doesn’t go to waste. You get to write it off. Your marketing, your business cards, your flyers, brochures or anything like that. If you want to RUN a business, you need to use all legal write-offs in your business and that’s what will help you, not so much to get profitable right away, but make it worthwhile so that you’re not losing money.

My Two Favorite Legal Deductions

My first Favorite legal deduction is the home based business office deduction, which is huge!

For example, if you have a 1,000 square foot house and you have a 100 square foot office, this gives you a ten percent write-off. It doesn’t matter whether you’re renting or you own your home and have a home mortgage. If your rent or mortgage is one thousand dollars, you get to write off, 100 dollars every month. If you need a new computer for your business, a video camera, software or anything that you use to promote and market your business, it can be written off.

My second favorite deduction may be even bigger. It’s your automobile. Currently the business use mileage rate is 55.5 cents per mile. Always check the IRS website or with your accounting professionals, for updates.

Let’s look at how this works.

Let’s say you need to drive to go meet a prospect or you have to go to the office supplies store. You’re going to keep track of all your “business” mileage to and from your business stops. You track ten miles in each direction for twenty miles total. That’s $11 that you will deduct at year’s end. As long as the initial reason for the trip was business, you can write it off. It will be between you and me if you just happened to stop at the grocery store on the way home. Oh yeah, the food you ate at your business meeting;50% of that can be written of as well!

Other Legal Deductions

  • If you have a child over the age of 6, they can be employed in your business. You can deduct their wages and they don’t have to claim it up to $5,450. Double whammy! It must be a business related activity and not just taking out the trash. They could do filing or database management. Face it, your 6-year-old probably knows how to use the computer better than you anyway!
  • With the proper planning you can deduct part or all of your vacations. Let’s say I am going to New York to meet with a client or prospect. We are going to have a few business meetings and talk about ways to grow our business. I can take my wife and we can do some tourist stuff while we are there. Travel can be written off with the proper planning.
  • All of your health costs may be able to be deducted.
  • Again, 50% of all food and entertainment that is “business” related can be deducted.

These are just the tip of the iceberg folks. You need to learn this stuff! If you know what you can deduct, it will help offset the cost of getting your home based business up and running and put you in a NO LOSE, situation. Once you are profitable, you will still need to track your deductions, but it will have become second nature by that point.

There are many books on this subject and your tax professional can help as well. You need to have the right tax person because some will fight you on certain deductions. If they are LEGAL, there is no reason why you shouldn’t be taking them. It’s all in black and white on the IRS website, so get familiar with it.

Using Your Money For The Monthly Expenses Of Your Home Based Business

I hear people saying that they just can’t afford to start a business. GARBAGE! If you are currently employed, which you should be if you are trying to start a home based business, you can afford to get started. All you need to do is change the number of withholding on your w-4 and receive your tax refund in advance.

Dangerous? Not even close. It’s your money! Getting a huge refund, once a year, is not a good thing. You are loaning your money to the government. Why not use it to create income for your family? Don’t get this money if you are going to be stupid and just buy stuff.

Use it to start a home based business!

I hope this helps show you how to make money with a home based business of your own. It’s not that scary and you can “learn as you earn.”