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Five Aspects of a Business Plan You Need to Get Right

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StrategyDriven Starting Your Business Article | Five Aspects of a Business Plan You Need to Get RightBuilding a business cannot be done without planning. The second you start a business your future and your financials are at risk. While the pay-off can be great, and you can even start a legacy, none of that will come to fruition if you don’t have an accurate plan on how to get from place A to place B.

Take opportunities as they arise by all means, but never go into a new business without creating a solid business plan:

Business Model

Choosing your business model is very important, especially with all the options available today. You can go for a subscription model, an advertising model, a pay now model, and so many more, and that’s just the payment plan. Decide in advance how you plan your company will be run and what it needs so that you can strategize around a real product.

Competitor Research

Your competition will offer a lot of valuable insight into what does and does not work. You should try to extend this research into companies that have failed previously and learn from their mistakes. Not only will you be able to improve upon your business model, but you will also be able to devise services and marketing strategies that appeal to your customers.

Cashflow Forecasting

You need to work out overhead beforehand so that you can predict how much you need in sales. This way you can either improve your business model or diversify your incomes to meet your base needs and hopefully exceed them. Once your business gets off the ground for a year redo your cash flow forecast so that you can better predict where spending will be tight.

Your Financing Options

Knowing your financing options is critical, especially as a new business. Without any previous business credit history or substantial enough assets banks will not provide you with a loan. Instead, you will need to diversify between personal funding and third-party loans.

Then there is the type of loan in question. A secure loan is secured against your assets, but if you do not have substantial enough assets, there are unsecured loans you can look at. You can learn all about the pros and cons of an unsecured business loan on biz2credit.com, and though it can be a good way to launch or expand your business you need to be aware of the risks ahead of time, as rather than leverage an asset you will often have to provide a personal guarantee.

Location

If you are opening a physical store the last part of your business plan that you will need to address is the location. Rent costs will be high, but more than that you will need to ensure your location serves your needs and is where your demographic is located.

It is important to remember that, though business plan size recommendations might only be a few pages, the work that goes into those few pages needs to be substantial. Consider your final business plan like a summary for a much larger report that works out what you need for your business to succeed. The effort you put in early on will be a key factor in any success you see.

Best Practices To Optimize Your Self Employment Taxes

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StrategyDriven Managing Your Finances Article | Best Practices To Optimize Your Self Employment Taxes | EntrepreneurshipIt’s great to be your own boss and this is the reason that a large number of people are picking up freelancing. Even those in full-time jobs are embracing it as a side hustle. While you can make good money from a part-time or full-time freelance project, you are expected to pay your taxes as well. To start with, you need to be aware of the fact that freelance income is taxable just like any other income is. Also, it will definitely impact how you file the taxes and pay them up. So it is better to understand and plan on the A to Z of taxes on freelance income to ensure that you don’t get into trouble with the IRS. Here are the basics that you must know.

What are the taxes on self-employment income?

Freelancers pay the same income tax rates as employed persons do. Additionally, they are considered independent contractors and are taxed on the net self-employment income. This income is calculated by deducting the tax-deductible business expenses from the gross receipts. This is the tax that takes the extra bite out of the freelancers’ earnings. It includes both Medicare and Social Security taxes. If you were employed, your employer would pay half of these taxes. However, you have to pay both the halves yourself in the form of the self-employment tax as a freelancer.

What are the deductions you can claim?

While you calculate the taxable self-employment income, you will also want to know about the deductions that you can claim. These deductions matter a lot as they can reduce your tax burden to a considerable extent. According to the IRS, you can claim deductions on the entire expenses which are ordinary and necessary for the operation of your business, just like it is allowed for any other business owner. Specifically speaking, you can claim them for a home office, advertising and marketing, computer equipment and software, office supplies, utilities and travel, and business meals. However, you must maintain proper records and documentation for these expenses.

What is the minimum earning that makes you liable for paying taxes?

Obviously, you would want to know whether you actually need to pay taxes on your freelance earning. According to the federal laws, you will be liable to pay them if your earning from freelance work exceeds $ 400 in a given year. The tax attorneys from Travis W. Watkins Tax Resolution & Accounting Firm suggest that you should receive these earnings in a separate saving account for simplifying tax calculations. Further, expect a significant portion of your freelance check to cover the taxes because you have to pay income tax as well as self-employment tax.

How should you keep your taxes on schedule?

Since you are your own boss, the responsibility for keeping your taxes on schedule is yours as well. The IRS prefers a pay-as-you-go basis and this is also simplifying things for freelancers. Ideally, you should send in the tax payments throughout the year, which can be done by remitting estimated taxes. The good thing about doing so is that you will not face a cash crunch in April. You will have to pay up all final tax payments by the April 15 deadline. The better way is to pay the estimated taxes on the quarterly dates of April 15, June 15, September 15 and January 15 (of the subsequent year).

What are self-employment tax rates and thresholds?

Another fact that matters is the tax rate and threshold because you would obviously want to know them as well. The self-employment tax is just like a flat tax. It takes a one size fits all approach and everyone has to pay the same percentage to Social Security and Medicare. However, the Social Security tax only is applicable only to earnings up to $132,900 (as of the 2019 tax year). The threshold will increase to $137,700 in the next year. The Social Security tax is calculated at 12.4% of the net income up to the threshold value, while it is 2.9% of total net income for Medicare. The full values are to be paid by freelancers.

Now that you understand that freelance taxes are different from those for the employed professionals, you need to be careful while computing them. Filing the returns and paying your taxes on time is equally important to keep things on track. Having an expert tax professional to guide you and handle your tax returns is a good idea too.

Effective Strategies To Grow Your Business

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StrategyDriven Managing Your Business Article | Effective Strategies To Grow Your Business | EntrepreneurshipThe ultimate goal of most businesses is to develop and increase revenue potential. While scaling your business can be challenging, there are plenty of ways to improve business operations, increase sales, and boost profits within your company. With this in mind, here are some effective strategies to grow your business.

Utilize an inventory management system

In today’s society, businesses must advertise and sell on multiple sales channels to remain competitive in the modern business world. However, multichannel retail and distribution can lead to several difficulties such as wasted stock, overselling, and customer complaints. These issues can have a hugely detrimental effect on your business, both in terms of cash flow budget and brand image. Fortunately, multichannel inventory management software can be utilized to manage inventory and fulfill orders in a multichannel structure. Inventory and warehouse management can be complex and difficult to manage when you are using multiple sales channels. For that reason, an inventory management system is essential if you want to scale your business quickly.

Create a customer loyalty program

Customer loyalty programs can be a fantastic way to boost sales and increase profits. While it’s important to look for opportunities to acquire new customers, it’s equally if not more important, to nurture your existing customer base. According to Linkedin “it costs between 4 and 10 times more to gain a new customer than to keep an existing one.” Offering a customer loyalty program shows your customers that you value their business. This will help you retain customers and gain valuable repeat business. An attractive loyalty program may also help you attract new customers as it gives people an incentive to spend money with your business.

Take your business global

Advancements in technology mean that all businesses now have the opportunity to expand globally. Scaling your business globally offers several incredible benefits; it allows you to increase sales and revenue potential, build brand awareness, and access a more diverse marketplace. Global selling platforms like Amazon and eBay make it easy for businesses to advertise and sell their products to overseas customers. Setting up an account on an international marketplace is quick and simple. Once registered, you will have the opportunity to advertise your products and services to potential customers in countries all around the world. Joining an international selling platform and expanding your business globally can be an extremely effective way to grow your business and increase revenue potential.

Hire a social media manager

Social media is a powerful marketing tool that can be utilized to build brand awareness, connect with customers, advertise products to a global audience, and increase sales. All modern businesses should be taking advantage of the power of social media in their marketing strategies. If you don’t have the skills or time to maintain an active presence on social media, then consider hiring a social media manager to run your campaigns for you. Social media is constantly growing and evolving. A social media professional will help you stay on top of this growth and remain competitive in the online business world.

How to Limit Personal Risk When Starting a Business

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You’ve got to be pretty brave to start a company. The failure rate is pretty high, it’s a lot of hard work, and, if it goes wrong, you might find that you’re in a difficult position. However, it’s probably not fair that people are punished for trying something and failing — the hit to their pride will be hard enough, must they really suffer in other ways too? We think not. There are ways that you can limit your risk when it comes to running a business. We take a look at a few ways how below. Incorporate them into your business strategies, and you’ll find there’s a reduced chance of your business having a negative impact on your life.

StrategyDriven Starting Your Business Article | How to Limit Personal Risk When Starting a Business | EntrepreneurshipDo Your Research

It all begins with your initial research. You could save yourself a lot of potential heartache and trouble by simply ensuring that what you’re trying to establish is, indeed, a good idea. Too many companies begin trading before figuring out whether there’s a demand for their products or services, who the competition is, and so on. If all the evidence suggests that it’s not a great idea, you should pull the plug.

The Right Set Up

It’s recommended that you limit the legal risk that you could face if your company isn’t as successful as hoped. You can do this by having the right set up for your company. As a business owner, an LLC offers the highest level of protection. Your business debts will stay tied to the business, rather than to your name. Similarly, if there’s an issue of negligence, then your assets could be at risk, even if you were only indirectly involved. It’s much better to set up as an LLC, rather than a sole proprietorship, with which your company’s debts would also be yours.

Stringent Quality Checks

Of course, while you can protect yourself financially and legally, there’s no hiding when it comes to your reputation. If your company is involved in an accident that was verifiably your fault, then it won’t just be your business that it affects – your name will be affected, too. As such, it’s imperative that you’re conducting stringent quality checks to ensure that everything is safe and high-quality. It’s when corners are cut and checks are not carried out when troubles can arise.

Legal Matters

You might think that everything is going smoothly for your business, only to discover that you’re in trouble with the authorities. Why? Because you were lax when it came to your company’s legal matters. Because of the threat that unlawful practices can bring, it’s recommended that you outsource the jobs to a law firm. They’ll make sure that everything is watertight.

Keep Things Separate

Finally, for your own sake, ensure that you’re keeping your business and personal finances separate. There are plenty of advantages to this, but one of the most important is that it makes it much easier to manage your money, and to ensure that you’re not screwed should your business flop.

Tips for Strengthening Your Wi-Fi Signal

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StrategyDriven Entrepreneurship Article | Tips for Strengthening Your Wi-Fi SignalWhether you need it for streaming TV shows or getting work done, your Wi-Fi is a necessity in your home. However, you may not be getting the most out of your wireless internet router. Slow speeds and poor performance may cause you to wonder what you can do differently to improve your Wi-Fi. To increase the speed and signal range of your home Wi-Fi, follow these guidelines.

Adjust the Antennas

This simple step can make a big difference in the strength of your Wi-Fi signal. While not all internet routers have antennas, the ones that do can be adjusted to improve the overall signal range and strength of your Wi-Fi. To do this, simply angle one antenna so that it is completely vertical while angling the other antenna until it’s completely horizontal. This strategy allows your Wi-Fi signal to travel efficiently through the walls and ceilings of your home, resulting in a faster and stronger internet connection.

Move the Router

In some cases, the problem is simply that your wireless router isn’t placed in the optimal spot in your home. The placement of your router has a direct impact on the effectiveness of your Wi-Fi signal, so be sure to carefully consider where you’re placing the router in your home. The best spot for your router is often in an elevated area that is free of any obstructions. Routers that are located in lower, crowded areas may have trouble sending a strong signal throughout your entire living space.

Update Your Router

If you seem to be experiencing persistent problems with your router, it may be due to having an older device. In this situation, it’s best to look into new wireless network services that can do their job more efficiently. Many routers even come with special security features and improved compatibility to allow for a more convenient internet experience. No matter what kinds of issues you’re experiencing with your current router, purchasing a new one can help to solve many of them.

Add a Wireless Range Extender

If all other strategies fail, your home may be too large for your router to transmit a signal throughout the entire area. Luckily, you can solve this problem by incorporating a wireless range extender into your home. This device simply detects the signal from your router and retransmits it across your living space, which allows the signal to become stronger and faster.

Slow Wi-Fi is frustrating. However, these tips can help you boost the signal in your home easily and effectively.

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