Treat Your MLM Business Like a Business

You have to treat your MLM business like a business if you want to succeed and to take all the advantages of what it offers for you.

Most people when they look at MLM start off as a hobby, thinking what if. What if I could have financial freedom, what if I could have time freedom. So they jump in and start to learn everything they can about the business, sign up to an MLM company and then start their product on Autoship, then they start to invest in company training of leads … basically anything that will help them to grow a substantial downline. During all of this they forget the most important aspect of what they are doing. THEY ARE running a business.

With running a business comes incredible advantages. Think Tax deductions. It doesn’t matter where you live the basic premise is the same all over the world. If you have a business, all of the expenses incurred in that business are a tax deduction. You can claim the cost of your autoship ( product costs ), your lead costs, your stationary costs, your computer costs, your internet costs, your promotional costs … the list just goes on and on. One of the best things that you can claim is the cost of your vacations. All you have to do is make sure that you conduct some business whilst on vacation and you can claim the cost of this business as a tax deduction. So get out there and hand out a few flyers or put them on windscreens ( if it is legal in your country ) so you can get claim your vacation as a tax deduction.

When you start to treat your MLM business as a business and not just a hobby your whole attitude towards it will change. You are the CEO of your own company. You are the one calling the shots and deciding how and where to spend your marketing dollars. You are the one deciding who you want to join you in the company and who carries too much baggage to be a good fit. You decide the opportunities you want to pursue and the ones that don’t fit in with your goals. You are completely in charge of your own destiny. It’s all up to you. That is both really scary and really exciting at the same time but the rewards are huge and the risk tiny.

The down side of treating your business like a business is that you will have to submit a tax return each year and have to start up a company. You will probably want to find a good accountant who has experience in the MLM world so they can guide you and make sure you claim your maximum deductions within the law.

How to Set-Up a Small Business Defense System Against a Possible IRS Audit

IRS is like a silent business partner. They usually accept your annual tax return as a legal record of how much you owe them! However, like any good business partner, they may have a few questions.

And when your silent business partner ask questions, you may find your self needing a reliable and solid defense system.

One such system cost about $12.00 and can be found at your local office supply store.

If you are just starting a small business and you don’t have a clue, or the time, to learn bookkeeping software programs – invest in an accordion file.

Train yourself to put ALL of your receipts, invoices and bills into your accordion file each day.

In the beginning, don’t worry about sorting out the receipts; just separate the receipts by months.

One way to make sure you develop the habit of stashing ALL of your business receipts into your accordion files, is to look at each receipt as if it were money. Because the more business receipts you have, the more money you will save on your taxes.

You can concern yourself with sufficient bookkeeping systems once you get your business up and running.

In the mean time, your trusted accordion file is your best defense against any tax agency, state or federal. Just be sure that the deductions that you or your tax professional reports on your tax return, equals the receipts you have in your files.

Depreciation and Business Use of the Home and other such deductions can add to your overall total of tax deductions.

Regardless of when you hire a part-time bookkeeper, you will need to keep all your accordion file records for 3 years. This is because the statute of limitations for tax audits and assessments is three years.

For items that you purchased and continue to own and use for business, keep these records for the life of the item. Examples: computers, printer, office equipment, office furniture, etc.

Depreciation is the annual deduction that enables you to recover the cost of business equipment or income-producing real estate.

More about depreciation in another article. For now, just remember to keep ALL your receipts in your accordion file. Your tax professional will help you sort out what is and is not deductible.

How To Create The Foundation Of Your Highly Profitable Online Business

‘First things first’ and ‘A good begin is half the work’ are two very true sayings. They go for everything in life, whether it’s personal or business. A recent study showed that over 60% of all online entrepreneurs didn’t prepare their business or themselves. This crucial step results in thousands of business owners failing.

Doing business online is no different from business offline. Both need a decent business plan, strategy to compete with other players in the market and a viable business model. In this article I’ll prepare you and your business to guarantee your online success.

1. Don’t see your website as a business. Your website is the place where people can find information about your business and it’s products and services. It may also be a place where people can place an order directly.

When you read the above paragraph again you’ll notice that it actually is a description of the word ‘media’ – a way to reach potential customers or clients. Just like newspapers, magazines, radio and television your website is a media. Start seeing it as a media to reach your market, instead of seeing it as your whole business. There’s so much more to business.

2. Running a business includes dealing with people. Although a lot of entrepreneurs are afraid of dealing with people face-to-face or even on the phone, they opt for running an online business. But even then they’re forced to have regular contact with people, whether online of offline.

And it’s not only your customers, like many online business owners think. Next to customers you got a whole list of people you should care about and work with, without them you can’t ever build a profitable business. Here’s a small fragment of the many people you’ll be facing: affiliates, vendors, JV partners, production firms, PR firms, writers, designers, technical assistants and personal assistants.

You see there’s no difference in doing business online versus offline. Be prepared to deal with people.

3. A business can’t live from just one product. Every product has a limited lifespan and will one day stop selling. Online the time seems to go faster, thus products may become obsolete in just a few months. Most business owners don’t have ideas for new products when that happens, because they’re put under pressure. Their business fails.

Many people who learned about online marketing and online business are confronted with so-called mini websites. Those sites that have one page with a sales letter on it, selling just one product. They think it’s the way to have your own online business – while it’s absolutely wrong.

The best possible solution for online business owners is to have multiple entry-level products, together with an extensive range of back-end products. The various entry-level products can be very ‘niched’, for example a marketing course for Italian restaurant owners who’re based in New York. Have several of those to capture all parts of your market and market the same back-end to everyone of them.

Please remember it’s almost impossible to create 5 different high priced home study courses, instead of just one general – for all kinds of restaurant owners.

4. Business is not only about marketing. There’s so much more to starting, running and maximizing a business then just the marketing. But since a lot of people think they’re so-called internet marketers, they don’t think of it as a real business.

Real businesses also include management of resources, both human and Money, product creation, networking, competitive research and customer support. There’s so much more to be done behind the scenes then what we see on the outside. Without thinking of the other important business owner tasks, you’ll never succeed.

5. Finding a gap in the market. Most people are told that you should find a gap somewhere in the market and fill that up. But there’s much more to that. Think of it this way: you’re a chemical engineer and find a whole in the automotive industry. You won’t be able to fill it, at least not without investments of many millions.

There are to other points you should take into account when brainstorming or researching for a potential market to get into. These two points are capacity and passion. First the product or service must be one that can sell enough to build a big company out of it. If there’s only room for around 100,000 a year, the market isn’t worth your efforts. The second is passion. You should be passionate about, or interested in the market you’ll be pursuing. Otherwise you’ll quickly lose your momentum.

6. Change your attitude and mindset from employee to the business owner. There’s lots to be said about this subject. But once you experience the difference between the two different mindsets, you’ll get much better results within less time. I’ll go into detail and give you a step-by-step solution for changing your mindset in my next article ‘The Profitability Of Working On Your Business – Not In’.