Building the Right Foundation

I don’t think that I can hold off any longer about letting entrepreneurs know the real truth about what makes a business successful.  It’s the start of a new year and my deepest desire is to see entrepreneurs succeed.  To be successful in business requires effort and a willingness to go on a spiritual journey.  It requires planning, money, and most of all, the will to do what ever it takes.  If you can honestly say I’m not willing to risk everything, you’re not ready to be an entrepreneur.  My goal is to teach every person who wants to be an entrepreneur, how to build the right foundation.  Entrepreneurs who have the proper knowledge can withstand any kind of problem, which could cause other businesses to fail.

To be in the game of entrepreneurship, you have to understand how it’s played.  You have to constantly pay attention because the game changes as you grow your business, tax laws change, and the economy changes.

Are you ready for the games to begin?  You can master these concepts as long as you’re willing to do the work, play well with others, and be willing to learn from others.  In every case, there’s a foundation or the core part of the game that never changes. So here’s the basics or the core foundation to help you get off to a good start.

I like to equate a business to building a house.  We are going to build a house on a solid foundation where it can withstand any setback with minimal problems.

One of the biggest mistakes for entrepreneurs is to jump into a business without thinking through the process with the end goal in mind.  So in other words, how would your house look when it’s completely finished?

  1.   The conceptual planning and research stage.  Having a good idea is good but having a great idea that sells, is even better.  So in this case, it would be your vision of your home with usable and workable space.  There are so many other factors to consider as well but to give you an general idea, it will get you pointed in the right direction.  In this stage,  you would be looking at your product and how much would it be in demand.  Who are you selling to or who is your target market?   You need to research your competition, and understand your customer’s needs.
  2. Then next comes the planning stage where you set down  your criteria for your business or the blueprints of your home.  The next biggest mistake is to form your business entity without the end goal in mind and no consideration of how it will affect your personal income taxes.
  3. After the concept, it’s time to start hiring the professionals.  You need the professionals to help you build the dream.  If you’re building a good quality home,  you hire professionals; the architect, the general contractor, etc. unless you are qualified to do it yourself.  In the case of your business, you need your attorney, your CPA, and other professionals who will point you in the right direction.
  4. Now you’re finally ready to lay the foundation.  To be extra strong,  you want to add things to make the concrete stronger such as rhibar, or additives.  When you’re pouring the foundation in your business, you’re looking at your core values, how you want your business to be portrayed to the public.  The more core values you have in your business, the stronger the foundation.
  5. Next step is building the walls – you’re adding some final touches to your business like business cards, stationary, an office, etc.
  6. It’s finally taking shape so now we’re ready to fill the house with furniture or fill your business with clients.  You don’t go out and just buy any furniture to fill your house – you look for a theme, something that matches with your personality, your style, etc. You want to do the same with your clients.  Don’t just take anyone, you want them to be similar (that’s your target market).
  7. Now it’s time to add the little things that make the house nicer, warmer, more inviting.  It’s time to add more services or products for you client’s to continue to work with you.

If you notice, there are distinct stages to building the house.  These distinct stages in business will ensure that you have a strong foundation.

Part of the journey of entrepreneurship is learning about yourself.  You may come across things you didn’t anticipate and need to be dealt with, costs needs to be constantly checked to make sure you don’t run out of money.  As you evolve,  your business will evolve.  As I said earlier, these are the basic foundational things that will never change but how we build our home and decorate it is all up to you.

If you enjoyed the article, please share it with your entrepreneur friends.

To learn more about the foundations of a successful business visit me at ww.crystalclearprofits.com

 

© 2016 | Crystal Clear Profits, Inc. | All Rights Reserved

 

 

 

 

 

Making the Right Choice?

Do you ever wonder whether you’re making the right choice or maybe have buyers remorse after it’s too late?  We’ve all been there, including me.

Today, I wanted to shed some light on what to consider when choosing a tax preparer, if you don’t prepare your own tax returns.

And by the way, I’ve come to live by this rule; if I don’t know how to do it myself, hire a professional.  I do that with my car, with improvements on my home, etc.  And seriously, the biggest one is …if you don’t know the tax laws,  hire a specialist.  One of my biggest mistakes is always to think that I can do it cheaper.  After the headaches, the re-do’s, the additional time that I didn’t have all added up to..I could have hired a professional and it would have been done faster with less stress.  And, I could have been working earning the money to pay for the thing that needed to be done.  So my lesson…if I were to calculate my hourly rate times the number of hours it took me to complete, did I lose or make money.

So after the hustle and bustle of the Holiday’s, it’s time to get down to the truth of what do you want for 2016.

Do you want another year of just getting by? Or how about the attitude of I’m doing something different because I want more out of my life?

As you go about selecting a person to prepare your taxes, ask yourself, what do I need this person to help me with.  You see not all tax preparers are the same.  There are actually three different levels of tax preparers but many people don’t know the difference.  I want to explain the difference so you know what to look for and ask the right questions.

Enrolled Agents (EA) are licensed by the IRS. Enrolled agents are subject to a suitability check and must pass a three-part Special Enrollment Examination, which is a comprehensive exam that requires them to demonstrate proficiency in federal tax planning, individual and business tax return preparation, and representation. They must complete 72 hours of continuing education every 3 years.  You will typically find them in public practice or companies like H & R Block or Liberty Tax.  Many will not know the accounting side of your business can affect  your taxes.  They only know the tax laws and  how to complete the tax return.

Certified Public Accountants  (CPA) are licensed by the individual state boards of accountancy. Certified public accountants have passed the Uniform CPA Examination. They have completed a study in accounting at a college or university and also met experience and good character requirements established by their respective boards of accountancy. In addition, CPAs must comply with ethical requirements and complete specified levels of continuing education in order to maintain an active CPA license. CPAs may offer a range of services including the accounting side of your business in conjunction with tax preparation and planning.

Tax Attorneys  are licensed by state courts, the District of Columbia or their designees, such as the state bar. Generally, they have earned a degree in law and passed a bar exam. Attorneys generally have on-going continuing education and professional character standards and the Tax attorneys may offer a range of services in taxation related to business, real estate, and estate planning.

Now that you know the difference and you’ve examined about what you want to have for the upcoming year.  One of the greatest mistakes is when you think that you’re saving a few hundred dollars.  That savings could translate into saving thousands of dollars in taxes when you hire the professional and you’ve lost the benefit of doing the tax planning for next year and many years to come.

Make the choice that’s right for a better 2016!

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© 2016 | Crystal Clear Profits, Inc. | All Rights Reserved