Practically every small business has receivables that it cannot obtain from clients. If your small business doesn't have any such receivables, consider yourself lucky. For those small businesses that suffer from uncollected receivables, solace can be taken from the fact you can claim a tax deduction.
Bad Debt Tax Deduction
A small business can write-off bad debt losses if it meets nominal requirements. To claim such a tax deduction, the following must be shown:
A. The existence of a legal relationship between the small business and debtor;
B. The receivables are worthless; and
C. The small business suffered an actual loss.
Proving there is a legal relationship between the small business and debtor is fairly simple. You must simply show that the debtor has a legal obligation to make a payment. Most businesses issue invoices or sign contracts with debtors and these documents suffice to prove the legal relationship. If you are not putting your business relationships in writing, you should begin doing so immediately.
Proving receivables are worthless is slightly more complex. A small business is required to show that the debt has become both worthless and will remain so. You must also show that you took reasonable steps to collect the receivables, but you are not necessarily required to go to court to meet this requirement. A clear example where you would meet this requirement is if the debtor filed bankruptcy.
While proving that you suffered a loss may sound like the easiest requirement to meet, the issue is a bit more complicated. The Tax Code defines the loss as an amount that is included in your books as income, but is never collected. A classic example of such a situation would be a manufacturer that provides products to retailers on credit. The manufacturer can show a real loss if the retailer files bankruptcy.
Unfortunately, there is almost no way to claim a loss if you provide hourly services and use a cash accounting method. The IRS does not consider the expenditure of time and effort to be a sustained economic loss.
Small businesses suffer all to often from uncollected receivables. If you failed to claim such losses as a tax deduction during your last three tax filing years, you should file amended tax returns to get a refund.
Write-Off Bad Business Debts On Your Taxes
Self Improvement Improves Your Business
Owning a thriving business is a dream for many people. Many small business owners work diligently to create a business that appears clean and well put together. Outward appearances can certainly help a business to thrive, but one thing that is often over looked by many business owners is their own self improvement and how that can affect the business they choose to own.
Your business should be one that you love and is a clear reflection of you and your personality. Finding your strengths and creating a business that runs well on those strengths will help that business to be a success. If you lack in certain areas your business is liable to flounder in those areas as well. There is always an opportunity to improve yourself and in turn improve your business as well.
Areas of your life that can always use improvement and will help your business to be a successful one are the areas of goal setting, and your organizational skills. If you lack either of these two skills your business will suffer greatly and turning it into a thriving business can be a real problem. Thankfully these are both skills that you can easily be learned and you can overcome a deficiency in these areas. When running your own business you need to be able to be well organized so that you can handle all of the last minute details that inevitably come up. Honing these skills will allow you to clean the clutter from your life as well as create a work environment that allows you easy access to all your important information.
Setting goals is an equally important task that a lot of people can have a hard time with. Personal goals are just as important as goals you set for your business. If you have personal goals in place that are attainable you will reach your goals in a time frame that is best for you. If you lack goals in your personal life your business goals may suffer as well.
The business that will thrive the best is one that fits your personality. Finding that business can be tricky, and you will have to be willing to take a look at your strengths and weaknesses. Improving yourself should start by taking a good look at your weaknesses and strengths determining which of those weaknesses can be overcome through learning better how to do them and start working towards that goal. For example if you lack organizational skills, can never seem to pay the bills on time or easily loose things then learning to be more organized would benefit you both personally and in your business. Having a clear cut set of goals, and striving to improve yourself will ultimately make your personal life better and help you create a successful and thriving business.
Top Money Making Business Reviews
After many years of experience within the internet market industry, we at Independent Business Reviews want to provide good quality, honest reviews of the top money making programs currently available online that deliver exactly what they promise.
We have spent several months researching and testing the best money making opportunities, to finally arrive at just 3 programs, that in our opinion, we consider offer by far the quickest and easiest route to begin making money online. Below is a list of the 3 reviewed sites that will guarantee your online success –
No 1 Top Product - Ultimate Wealth Package
The Ultimate Wealth Package offers a little bit of something for everyone and stands alone in its simplicity and refreshingly honest approach.
The e-book begins with an overview of highly profitable internet strategies and tips in plain and simple language with no filler. It talks you through how to create and monetize affiliate sites immediately, money making pay per click strategies, simple SEO techniques, selling your own profitable info product and selling on eBay using wholesale suppliers.
Also included in the package is 108 bonus items, which include many that you will not find anywhere else, and a free website built for you that would normally cost $400. If you can inject a small amount of effort and follow clear instructions you cannot fail to make money.
No 2 - The Rich Jerk
The Rich Jerk is exactly that, very rich and obnoxious but a well respected affiliate marketer and a close contender for our top product.
The Rich Jerk’s eBook is a clever, well written, and very informative book detailing internet marketing strategies that really work. It covers everything from creating successful affiliate websites, search engine optimization, unique search engine strategies, selling info products and buying wholesale and selling on eBay.
Also included is a chapter highlighting a list of programs, books and tools recommended by The Rich Jerk many of which can be beneficial in optimising your profits.
The eBook is not a get rich quick program, neither is it a scam. Thousands of people are making a susbstantial income from following the strategies outlined. This is a great product and well worth the purchase price.
No 3 - Forex Enterprise
A fairly new marketing course set up by its creator Nick Parks with ideas that can create an opportunity to start earning multiple streams of income from a variety of sources.
The program details amongst other things how anyone can create a guaranteed stream of income using Google AdWords and Clickbank, how to buy cheap targeted traffic with great effect and, if on a tight budget an alternative to pay per click advertising.
Included in the package is a website with free web hosting where you could sell over 1000 products. This is well worth the purchase price with the potential to set up a virtual online superstore.
The Forex Enterprise program offers, like the others, a 100% money back guarantee which you have up to 3 months to try out to see if it works. Another great product that can really deliver.
Summary
The key to making money online is knowing how and where to start. Without the right starting point you will waste a great deal of precious time and money. In our opinion, with a little thought and application, all 3 products discussed in our review will guarantee your online success.
For more detailed info click on following -
http://www.independentbusinessreviews.com
Your Big Success In Baby Apparel Business
Baby apparel business is a lively industry. In the whole world, every eight second a baby is born. That means, at least seven babies in a minute!
So, can you imagine how big the business is.
However, not all gets a big success. What made them fail?
Before talking about the failure, let’s take a look at what it takes for a successful baby apparel business.
• Materials
Those who wish to be a serious player in the business have to expertise this first. Get to know the materials. Why is it so important? Baby’s skin is quite sensitive. You don’t want your product to be the trigger for a baby’s allergic and moms will talk about it and the next thing you know, no one is buying your baby apparel products. Get only the best materials, safe ones, for sure.
• Design
Get a designer if needed. The apparel should be simple yet cute. Baby is all about being cute. No one is buying ‘sad-looking’ baby clothing. Try to prepare designs for all weathers to make the hit all year. Or, you might be able to specialize in winter baby clothing, for example. Also, it is best to make it simple. Onesies or outfits that come in one piece, open in the front, have zippers, or snap buttons are something moms are crazy about for they are easy to put on.
• Colors
Use bright colors. It doesn’t have to be blue for baby boys and pink for baby girls. Yellow and green are the new trend on baby fashion. Explore with colors. Imagine how they look on babies, because babies are good in any colors at all.
• Mix and Match
If possible, try not to make or sell only onesies or t-shirts and pants. Get caps, socks and shoes with the same design and colors. It can boost selling. Those moms don’t have to browse for the accessories for you have prepared everything for them. And for buyers who plan to give it as a present, they must be contented for they have all items in one package. Some baby apparel products prepare such a thing for newborns only, actually, it is also possible for older babies.
So, those are the aspects for a success baby apparel business. Disregard them is the beginning of a failure.
There is also one other way to success that might be useful in this era of internet. Get an online store. It's estimated that consumers spent $44.5 billion on internet-based goods and services in 2000. So, selling on the net is a great option you need to consider for a success in your baby apparel business.
What Is The Number 1 Determinant Of Success In Home Based Businesses
What is the most important factor in your success with a network marketing or MLM type business? In my experience, the most important factor in success in any of these businesses is the person who sponsors you or that you sign up under...
1. What level of success are they having? Can they prove it to you? If they aren't successful, how can they help you? Internet businesses take a lot of knowledge to correctly market and build. Buying leads that are not targeted enough to your business and have probably been sold 3-5 times already is not going to work.
2. If they are successful, is their system duplicatable? Some people are successful but you can't do what they have done. Do they already have a website like WAHM that has thousands of subscribers? or maybe they have a radio show? Or they signed up someone underneath them that has a large percent of there actual success... Or in a lot of cases, they just got in early and everybody signed up under them by default - and you cant duplicate that!
3. Do they have an unlimited budget of money or time to spend on the business that you cant duplicate? If they are just buying their traffic and you can't then they really cant teach you anything...
There are people out there who are making lots of money and are driving traffic to their business with a combination of pay and free resources, but you have to find that person. And then make sure they are truly willing to teach you the ropes and not just tell you whatever it takes to get you signed up into their business...
Don't Go Cheap When Installing New Business Phones
I recently replaced my business phone system to accommodate an increase in the volume of calls I was receiving. I own a car rental franchise and needed to have new lines and new phones installed to go along with the new customer service representative I needed to hire. By taking care of my customers and keeping my vehicles clean and available, I was able to build my business and force the closure of one of my two nearby competitors. The resulting influx of customers meant I needed to act fast in order to capitalize on my good fortune. Like most people would, I gave little thought to my phone system and just decided to go with the cheapest solution I could find.
I purchased a new system that I was told would handle my volume. At first, I was more than satisfied as everything was working great and I had no problems. Shortly after I put the new phone system in place, I reduced our rental rates in order to try and get as many customers to switch over to my company from my now defunct competition instead of to my one remaining competitor. Even though I was operating at a loss for two months, my strategy was successful and my business increased yet again. The problem was that the phone system I purchased was designed to only handle a small amount of lines, and I was already at full capacity. While it was an improvement over my first system, it had limitations that I hadn't considered. I ended up having to replace it all over again, but this time I had the sense to go with a system that could grow with my business. Luckily, I was able to get some credit for returning the second phone system, which went toward the newest system.
Still, I lost money, and had I only been less concerned with the bottom line and more concerned with getting what I really needed, I would have been better off. When buying a phone system for your company, make sure you purchase one that you won't outgrow if business starts booming. I wish someone had told me that before I made the mistake of trying to save a few bucks.
You May Need To Hire People To Help You With Your Home Business
If you are deciding whether or not to start your own home business, you may also want to consider having people work for you. Owning a home business is similar to owning a brick and mortar business. You may be surprised at how quickly your business takes off and you may be swamped with work sooner than you think. With the help of other workers, your stress level can be reduced and your tasks can be alleviated.
Before hiring people to help with your home business, you should consider a few things. For one, your business is run out of your house. If you are hiring employees, you need to keep in mind that these workers will be coming to your home, and not just an office location. If you have children in your household, you want to make sure that your new employee will accept the children as part of their work environment. If you have pets, you'll want to consider hiring someone that does not have pet allergies.
Of course, you always have the option of hiring someone to work strictly online for you. This can be an easier way to hire new employees. You will not need to be concerned about your home environment and you can hire someone from across the globe if you choose. In fact, most people who are looking for employees to help with their home business hire in this manner.
Owning and operating a home business is similar to owning a regular business. When you hire an employee, you will need to establish a set of responsibilities for this worker. You'll also want to create an agreed upon salary amount and work schedule. Be professional and upfront with your employees before they begin working. After all, you are running a business and not just a home business.
Work From Home - Become A Business Executive For Under 200 Dollars
The cost to start an online work from home business is under $200.00. All you need to start working from home is a computer, Internet connection, a domain name and hosting company. You can hang out your shingle saying "Open For Business" within days of making the decision to have a business online.
Once your plans are finalized as to what type of work at home business you want to start, you can find the products or services that complement your idea. The planning and execution of your planned business venture will cost you nothing but your time.
The day-to day operation of a work at home business opportunity can be automated to a level where your time commitment is minimal. When all the pieces of the business are in place, you can appoint yourself a CEO of your home based business. Officially, you will need to decide on a business structure that will support your CEO status.
Starting a home-based business is not without risks. The success and promised wealth will not just materialize overnight. A home based business or any new business venture is never a sure thing in terms of guaranteed success. But the upside of owning your own business has benefits that no JOB can ever provide you. You are in control of your life, your destiny, your income.
If the entrepreneurial spirit is alive, you can capitalize on the work at home phenomenon. Thinking like an entrepreneur will push you to use the knowledge and skills that you already have. You can then obtain the skill required to run your business from home. You will need some specialized skills and knowledge to succeed in your own home-based business.
The excitement of starting a home-based business is exhilarating. All of the excitement is not an invitation to just quit your day job. However, you should begin trying to plant the seeds online for the type of business that interests you.
What is it that you enjoy doing or have experience with off line? Do You have a passion for a sport , video games or a person? You could always start a sport's chat room, provide updates and strategies for online gamers. You could be the next dating site owner. You can use something you love to create a business online.
While you are making the transition from worker bee to owner, open your eyes and your mind will open to the innovative ways you can use the Internet for your business. It is hard to imagine the number of people that are available to you. It is estimated that there are over 700 million people on the Internet. Your ability to reach customers from all over the world has been reduced to a mouse click. The world is your marketplace. The opportunity for wealth has never been as available to the everyday entrepreneur. The opportunity to work from home is available to everyone.
You can be open for business twenty-four hours a day. There are no employee problems or restrictive access because of weather conditions. Just the availability of Internet businesses make them very profitable.
Your work at home business can be a global empire within a matter of months. The work from home business trend shows no indication that it will slow down in the near future. The competition is fierce on the Internet for the almighty dollar but the Internet is still in its infancy. There is plenty of room for your work at home business to grow and prosper using the Internet.
Managing The Financial Aspect Of Your Home Business
Financial management is one of the pitfalls for people who are engaged in a home business. Even if your have choose a good home business but you have no idea on how to manage your business financially, you will most likely end up losing a lot of money. Since you cannot afford to waste your money, you better shape up and take care of your finances early on. It will not really do you any good if you just keep working on your business not really knowing if you are making enough money to compensate for your efforts.
Getting started
The first thing that you need to do to get your financial systems in place is to open a separate bank account for your business. A lot of home business owners keep their personal funds together with their personal accounts that they end up drawing money which should have been for the business and vice versa. The practice of mixing up your personal funds and the funds for your business is very dangerous because you will not have much control over you business and personal finances. By opening separate bank accounts for your business and for personal use, you will be able to manage your money better.
Aside from setting up a separate bank account for you business, you must see to it that you also set up a separate funds for your business expenses. Since you are working form home, try to separate all the expenses that are related to your business from your home expenses. For instance, your business phone should be paid by money coming from your business account. You might also want to “bill” you business for utilities and rent. You can do this by setting a certain amount every month for utilities and rent then take this amount from the business account.
Out of your business earning, you might also want to set up a certain amount which you can draw out as your salary. The good thing about setting a certain amount of money every month as your salary is that you will be able to determine if you are indeed making enough money to pay for all your business expenses and at the same time pay yourself for your efforts. Make sure that you only draw-out the extract amount of money from the business for your salary. Even if your business is doing well and you have plenty of money in the business account, do not be tempted to draw more than you should. Keep the money in the business account for future use. You might want to expand your home business later on.
At the end of the year, you might want to give yourself a bonus. If you have been religiously following your own rules regarding your finances, you will be surprised at how much money you will have left in your business account at the end of the year.
Why My Early Business Ventures Failed
When I was in my 20's I had a buddy who was a budding entrepreneur, and he had such an infectious enthusiasm for starting his own business that I'd often be persuaded to join him in his entrepreneurial exploits. For some reason we didn't know at the time we nevar actually became the millionaires we believed we could be, and looking back now I can see why.
All of our business ideas centred around dealing in used cars, as we both worked in the automotive repair industry and knew the market, so that wasn't why we failed. But when I look back at what we didn't do I now know why we did. So here I'll retell the story of our failed business, and maybe you will see where we went wrong.
It would always start with a phone call from my friend to tell me of a car the chief buyer at the used car lot he worked in had found at a bargain price that we could buy. We'd pool our resources, and buy said car, and spend the next week cleaning, fixing up and making good our business investment. We knew the resale value of every vehicle we bought and always had the opportunity to turn at least 50% profit, and we'd rub our hands together with visions of our profits. We would advertise the car in the top used car ads paper in the area and even pay the extra for the papers professional photographer to take some pictures. When the paper was published on a Thursday we'd sit by the telephone and wait for it to ring.
Usually by Saturday we'd had few calls and decided our price was too high, and lower it for the next weeks listing. Looking back this was our second business mistake, the first was our ad copy in the paper, it sucked and that's why we didn't get any calls, not because the price was too high. So once we had lowered the price we did get calls, and viewers for our now bargain priced car. Almost without fail these potential buyers would come and offer us a much lower price than we'd advertised, because they were mainly small traders who knew the business better than we did, and had spotted the same car listed two weeks, and the price drop, and knew desperation when they saw it.
Invariably by the third week of poor ad copy, price drops and failed haggling we would drop the price to the point where we would only just break even. Someone would get a bargain, which usually would turn up on a sales forecourt for even more than our first price, or worse for our battered egos back in the same paper we'd used for a higher price than we'd even dared to hope for, but would not be for more than 2 weeks.
And this was repeated many times over several years, with the same results for our grand auto business ideas, no sales, no millions and still repairing vehicles for someone elses gain.
Here's where hindsight shows up our business mistakes.
1. Poor ad copy, we had no hope of getting any calls on our great cars with our very basic and uninspiring ads, even with a picture. The words just didn't sell.
2. Price dropping, when you start dropping your price, your potential customers will see you don't believe in your businesses products or services enough, and if you don't believe why should they?
3. No business plan, although we had tons of enthusiasm we had no solid plans, even if our first car had sold we would have bombed because we had nowhere planned to go forward to.
4. Lack of professionalism, as well as poor ads in the paper our business suffered from the fact we were two enthusiastic amateurs, with no telephone manner, and poor salesmanship, we also lacked in confidence to hold up our prices and stick till it was sold.
5. Impatience, I firmly believe this is our biggest business mistake, and one I see all too often in online entrepreneurs. Impatience will stifle your business. The budding entrepreneurs that were my buddy and me didn't want to wait for our profits, we wanted instant results, and that just doesn't happen. Ask any "overnight success" and they will tell you they only acheived overnight success after years of trying.
6. Doing the same thing, and getting the same bad results. We never changed our routine, it didn't work, but we kept following the same steps, and failing in the same ways. We should have been testing, and tweaking our sales techniques, instead we used the same ad format, in the same paper, and dropped the price in the same way every time.
So take a step back, and look at your business practices, can you see yourself making any of these mistakes?
Are you expecting instant riches from your business? Do you believe that dropping the price will get you more sales? Do you need to improve your ad copy? Does your business portray a professional image? Are you doing the same thing every time but expecting different results?
Be honest with yourself, look for the mistakes you might be making and don't keep making the same mistakes every time. Hopefully you can learn a little from my business mistakes and turn your own business around to be what you want it to be this year.