And … if you are like most people … following that clear “YES” would be a litany of handicaps, any one of which would cripple a potential secondary income stream:
BUT … I don’t have time.
BUT … I don’t know how.
BUT … I don’t have the money.
But … But … But … is crippling our economy.
Why?
Because of a thing called the "velocity of money."
“Velocity of money” represents how much money is in circulation and how fast it circulates. The more money and the faster it moves … the stronger the economy.For example, businesses circulate money by spending money to make money, then they spend more money to make more money. The more money they make, and the more money they spend, the higher the velocity of their money. (Much of the money circulating is employee income. However, employee income is not spent in order to create more income … except for some part time business owners who buy products for their personal use from their own businesses.)
Many of these “velocity of money” producing businesses are part time businesses … without employees. In fact, as much as 25% of the nation’s Gross Domestic Product, which is one measurement of the velocity of money, is produced by businesses without employees.
Part time businesses without employees
are the most economical to fund,
the fastest to start,
and the easiest to operate.
Hence, the key to economic recovery begins with part time no-employee businesses … started before the end of ...(now)?
Millions of dollars can be produced and spent by these small businesses. Those millions, though small compared to the GDP, could create a “velocity of money” in homes across America. The “velocity of money” at the household level has the potential of igniting the velocity of money at the corporate levels.
But, but, but, but …
I know, I know, half of Americans think they are too broke to do anything, and the other half are afraid to spend what little money they do have. In such an adverse climate, how could thousands of new small businesses get started?
Easily, because …
Uncle Sam pays for the start-up costs and the ongoing operating costs. It's called an "Ethical Bribe," and here's how it works…Three steps can stimulate the economy.
1) You intend to start and run a part time no-employees business (2 to 10 hours a week).
2) You intend to ultimately make a profit (few businesses make a profit in the first couple of years).
3) You intend to keep simplified business records. (I run my part time home based business using a Visa card and Outlook Calendar. The Visa card automatically records and itemizes my business expenses and Outlook calendar documents my business activity.)
To paraphrase any knowledgeable tax attorney or CPA, If you start a no-employees business with the intent to make a profit (IRS code simply says “make a profit,” not how much profit), the IRS will cut your taxes by $2,000 or more every year, starting RIGHT NOW. (Email me and ask for a free copy of the NFIB home business tax reduction check list so you can get an idea of the variety of tax advantages available for a home based business.)
Caveat: No business, or any kind, should be started just to reduce taxes. That is tax evasion. However, it is completely legal to start a business and use the good tax laws to assist your fledgling business. Sanford Botkin, and other tax attorneys, create tax training programs about specific IRS laws … laws which can be confirmed by reading them at www.irs.gov . To my knowledge, ALL of the tax code is available online. The challenge is finding the right code, which is why we need the experts like Sanford Botkin.
Furthermore, if you are an employee, the IRS will let you collect part of your additional Tax Refund every couple of weeks, all year long – you do NOT have to wait until April 15 of next year.
HOW DOES THAT WORK?
Simply ask, and I send you a one page business expense tax deduction guide from the National Federation Of Independent Businesses (NFIB), plus a one page check list of items most home based businesses deduct as business expenses (employees don’t pay taxes on money that is invested to start or run their own part time no-employees business). After you get your copy of the check list, notice that most of the items on the list are also items that employees already have (cars, cell phones, computers, DSL, etc).
Note: Your privacy is required by law and my personal ethics. After you print a copy of the document I send, you then fill in the check list with a pen or pencil from the privacy of your home. I have no way of knowing what you put on your personal list. That list is for your eyes only. After filling in the blanks, add up all of your personal use items that can be converted to business expenses. If the total is greater than $2,000 a year, then we should schedule some time to discuss how to increase the velocity of your money.
If your annual estimated tax deductions from the check list exceed the average cost of running a home based business, then your first supplementary income stream will be subsidized by the IRS … to the tune of thousands of dollars (there really are good tax laws).
Example: A fifty year old home based business (1 of the 4 which I recommend) averages less than $100 a month to operate so if your estimated tax deductions are $6,000 a year, then a part time business (2 to 10 hours a week) puts $4,800 spendable cash in your pocket.
WHAT ARE THE 7 BIGGEST TAX BREAKS?
Out of the hundreds of business tax advantages passed by congress, and part of the IRS code, for home-based businesses, here are the TOP SEVEN:
1. Home Office Deduction (this even lets you write-off your RENT!)
2. Business-Use of Personal Vehicles (this may be your BIGGEST deduction)
3. ALL out-of-pocket Health and Medical Costs (for the whole family!)
4. Hiring your own Children (as young as 7 years old, up to $5,700/child!)
5. Combining Business with Pleasure while on Trips (vacations just became deductible!)
6. Meals and Entertainment (this deduction is bigger than ever, and totally safe!)
7. Depreciating home furniture & furnishings used part-time for business.
After totaling your anticipated tax advantages, and picking out a home based business (I recommend only about four out of a possible 1,500), you can visit your payroll office to fill out a short form called a W-4. For each $4,000 of potential business tax deductions, you can increase your exemptions on the W-4 by one exemption. Each exemption puts an extra $300 per month in your take home pay – beginning with your very next paycheck!!!
That's like putting $75 extra cash in your pocket every week – week after week after week! That's just from tax savings not even counting the secondary income stream that will result from running a part time no-employees business with the intent to make a profit!
Note: a home based no-employees business is not designed to create wealth, just a nice secondary income stream for a minimal amount of work. If you want to get wealthy without any work, may I remind you of a statement attributed to Leonardo de Vinci, “He who would be rich in a day, will be hung in a year.”
Carefully choose the company from which you will create your secondary income stream. As of today, an aggregate of about 1,500 companies offer low cost start up businesses. Within five years, 1,450 of the current aggregate will be out of business either because they are underfunded or do not have a “purple cow” product.
May I suggest you consider the oldest direct sales business (50 years old) with the oldest product supplier (150 years old). Longevity is a pretty good indicator that a company is running the right business, with the right products, in the right way. If you would like to know more about this most venerable company, just ask … I think you will be pleasantly surprised. I know I was.
Remember: Small Business has always been the backbone of the American economy, so it is the rapid expansion potential of Small Home Businesses that has the greatest potential to return America to Growth and Prosperity.
From a semi-retired business man’s perspective, the next two years will be fascinating.
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