Posts Tagged ‘Myths’

Derek Elliott ? Entrepreneurship Myths

The entrepreneurship process is shrouded with many unlogical myths. So the emerging new business persons should be more careful because falling for them can be more dangerous to any businesses health.

The growth and performance of their startups of the biggest myth entrepreneurs depends more on their entrepreneurial talent than on the businesses they choose. All the business owners want the people to have a realistic understanding of things. The Field chosen by the person for starting a business plays a key role and has a huge effect on the odds too. Some of the myths used are,

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Entrepreneurship is Not for Everyone…5 Myths and Realities of Entrepreneurship

With the economy in shambles, talk of self-employment is on the rise. Americans are beginning to realize that dedication and loyalty to someone else's business is no guarantee of security, and working for themselves is sounding better and better. However, many people harbor significant misperceptions about what entrepreneurship really means. The myths and realities of entrepreneurship should be well understood by anyone thinking about going out on their own.

Myth #1: Starting my own business means I will have more free time.

Reality: For most startups to succeed, the entrepreneur must put in extraordinary hours, especially during the early stages. Every detail of the business requires attention from you and your to-do list will grow faster than it does at a 9 to 5 job. Carving out time for yourself will be necessary, but difficult because you will forever be thinking of the thousand things that should already be done, but aren't. If you are looking to build a thriving company, don't count on spending lots of time on the golf course, at least not in the first year or two.

Myth #2: Owning my own business will solve all my financial problems.

Reality: While it is true that business ownership is the only way to dramatically increase personal wealth (besides winning the Lottery), it does not happen overnight. After months of work to get your venture to the break-even point, your next objective is ramen-profitability. That is, a successful startup will keep you and your family in ramen noodles until the next sales growth spurt. Plan to sink every dime you can into your startup for at least the first year. It might be tough, but the payoff is significant -- and one you aren't likely to find crawling up someone else's corporate ladder.

Myth #3: My idea is so good it will sell itself.

Reality: No, it won't. Building sales requires time, money, effort, and planning, no matter what you are selling. Even if you are starting with a great client ready to buy, you must always be looking for the next great client. Marketing is at the heart of all businesses -- no marketing, no sales.

Myth #4: Self-employment is easier than working for someone else.

Reality: Working for yourself is far more demanding than any job. The business begins and ends with you. Sick days, hour lunches, and leaving work at work are perks reserved for employees, not the boss. Until you have grown your venture to the point of having a trustworthy staff to cover all critical tasks, it is on you. However, successful entrepreneurs are driven by the control and autonomy that come with self-employment and enjoy the feeling of being responsible for every outcome -- good or bad. If entrepreneurship were easy, more people would be on board. As it is, only 7.2% of Americans are self-employed -- far fewer than most other industrialized nations.

Myth#5: Running my own company means I get to be my own boss.

Reality: It's true! You do get to be your own boss, as well as your own accountant, your own lawyer, your own marketing department, your own support staff -- the list goes on. While entrepreneurs do have more control over what they do and when and how they do it, they also have the added pressure of all the responsibility for the success and failure of the business. Entrepreneurs also trade in a single boss at a regular job and receive hundreds or thousands of bosses -- your customers. Your customers are the lifeblood of your business. It is your responsibility to provide a product that benefits them and offer customer service that keeps them satisfied and coming back for more.

As your business grows, your responsibilities expand to include keeping your employees happy as well. No longer stuck with a boss? Now you have thousands of them.

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3 Email Marketing Myths That Will Help You in Email Marketing Campaign

Email marketing is an old way to advertise your product but all Internet marketers who have tried it should admit how powerful email marketing in persuading people to whip off their credit card. Before start doing your homework in building email marketing list, there are some myths and misconception that should be cleared.Here are some of them.



1.Not a lot of people use email


The most important reason why email marketing is one of the best marketing tools is because almost everyone have email and check their email regularly. Email works like a nest for a bird. People who do not have email is like a bird without a nest, because there is no way to address them.



2.Email marketing campaign is impolite


People often judge email marketing as spamming and intruding someone’s privacy. From the recipient perspective I have to admit sometimes email marketing is really make lots of people upset, I think the sender just bulking up my email with bunch of junks. But I finally realized that email marketing is different from spamming. Email marketing is permission-based, the message is send to people who agree to received while spamming is have no permission.



3.Sending email to all the people is stupid thing


The best way to solve this problem is by analyzing your list before sending your email. There is a tools called customer segmentation that can help you to send your mails to certain group of people. You have to interact with your list, it should be two way communication, you have to get some feedback and adapt to it.



To conclude it, you should make this point really clear in your mind before start your email marketing campaign. Start building your list and prepare your goal and marketing strategy.


I wish YOU good luck,


Rudy Yonatan


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Four Common Tax Myths All Home Business Owners Should be Aware of

The home office deduction gets a bad wrap. There are so many rumors out about the home office deduction that you may want to avoid the whole subject. But if you have a home office and aren't deducting it, you could be missing out on some very valuable tax savings. Let's take a look at the truth behind the myths about the home office deduction.

Myth Number 1 - The home office deduction is a red flag for an audit.

Twenty years ago, this might have been true, simply because it was unusual. Now, the home business seems to be almost as popular as home ownership! Millions of individuals operate some kind of business activity out of their homes. Others telecommute, and deduct their home office expense as an itemized deduction. The home office deduction is no longer an automatic flag for an audit.

The key to avoiding an audit is reasonableness. The IRS uses computer analysis on all tax returns. Any deduction that is excessive on your income and the benchmarks for your industry may be questioned.

Bottom line: Deducting a portion of your home expenses as a cost to operate your home-based business is expected!

Myth Number 2 - If I take a home office deduction, I can deduct all the costs of my home.

You deduct a portion of your home expenses as a home office expense based on the square footage of your home office space. If you have a 2000 square foot home, and a 200 square foot office, you could deduct 10% of your home expenses.

Unless you operate a day care center, your home office space must be exclusively used for business. Your kitchen will not qualify as home office space simply because you use the table to complete paperwork. If you use the space for personal and business, it does not qualify.

The easiest way to keep track of this is to designate a room or rooms for home office purposes. If you don't have a complete room to use as office space, use furniture to separate the personal part from the business space.

Of course, there is an exception to this rule. If your business is wholesale or retail and you do not have any other fixed location, you can include any space you use for storage of inventory or product samples as part of your home office. This space does not need to be used exclusively, but must be used regularly, and be suitable for storage.

Bottom line: Calculate the square footage you use exclusively for business and the square footage of your storage space for inventory to determine your home office deduction.

Myth Number 3 - I can only take the home office deduction if I work at home exclusively.

Old rule! Congress expanded the home office deduction to allow business owners without any other fixed business location to take a home office deduction regardless of the number of hours they spend at home. If you provide services to customers or clients at their location, you can still qualify for the home office deduction. You simply must use your home office for administrative and management duties.

Bottom line: You can deduct your home office as long as you don't pay for other office space to run your business.

Myth Number 4 - The home office deduction will make me lose my tax exclusion on the sale of my home.

The rules have changed here, too. If you use 10% of your home for business purposes, you no longer have to recognize 10% of the gain on the sale that could have been excluded if you meet the requirements for the sale of your principal residence.

What you do need to do, however, is include any depreciation deduction you took in prior years as a taxable capital gain. You still benefit, because your capital gain rate is most likely lower than your ordinary income tax rate. You are able to take the original depreciation deduction at ordinary income tax rates, and bring it back into income when you sell your home at the lower capital gain rate. Your depreciation deduction can also reduce your self-employment taxes.

Bottom line: You can still save taxes overall by taking the home office depreciation deduction each year.

Operating your business from home is a very smart move financially for the new or small business owner. You can save yourself thousands of dollars in rent by operating at home rather than renting business space.

But the cost of housing your business is an expense, and should be treated that way. You would not hesitate to deduct rent expense for your business. Treat your home business expense the same way. The tax money you save can be used to grow your business, or even to fund your family vacation! Talk to your tax preparer if you have more questions, and get ready to take that home office deduction on your next tax return!

Todd Jensen, "The Profit Engineer", has helped hundreds of business owners make their business more successful and profitable. For tips and strategies on how to boost your business success as well as increase your profits, visit
http://www.theprofitengineer.com or
http://www.freebusinessstartupinfo.com

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