It's the great American dream - start your own business and get rich!  Well, not to burst your bubble, but there is a lot more to it than that.  If you want to start your own business, which is happening more in this economy, I want to help you be realistic about it and be prepared.  I find that a lot of people get an idea and just jump in, without researching anything, without planning anything and without knowing exactly what they are getting into.  Most of the time, they don't know anything about how to keep their books, what licenses, permits or government registrations are required, how they are going to evaluate their progress and success, where they are going to get the money to start up and keep going, and how it will affect their taxes.  Other questions you need to ask yourself: is my credit good enough to get the financing I will need for my business? do I have a business plan? do I have people to help and support me? what will I live on until my business becomes profitable? do I have all the skills I need to handle every aspect of owning a business, or do I know who I will hire to help me, and how much those services will cost? do you have a passion for the business you want to start? how will you market your business and get customers? what about business insurance? These are all issues that you should look into BEFORE you start a business.

There are two areas that seem to be booming right now for entrepreneurs, they are home-based businesses and MLM's.  They both potentially require a small start up investment and both have the potential to create good income, but you need to know the challenges associated with each.  Be sure to do plenty of research on any MLM opportunity and realize that with so many people out of work, some markets may be saturated.  The key is to know all the facts about what you are getting into, the costs associated and the true story of the benefits you may get.  Beware of anyone trying to sell you on an MLM that is promising you all kinds of tax benefits.  In general, these people know nothing about taxes or legitimate write-offs, you should do your own research on that, check with your CPA to make sure you have the correct information.

The important thing is that you are prepared and that you have a passion for what you want to do.  Be aware that the IRS expects you to be in business to make a profit, and if you don't, eventually, they may classify it as a hobby.  See my prior post about Profits/Taxes - The Catch 22 for more information on this subject.

If you want to start your own business, please call me or e-mail (teresa@winning-edge.net) so I can help you get started on the right track to a successful business.