Home Businesses – What They Don’t Tell You

When is the best time to invest in a home business? December….yes RIGHT NOW!!

Investing in a small business in December gives you the opportunity to write off your inventory purchase against your taxes. If you’ve ever wanted to earn extra money working a few hours per week, now is the time to invest.

You can also write off the products you buy as samples throughout the year. Let’s say if you have some weight to lose and you want your family to live healthier we have a wonderful program just for you.

Imagine, you can write off your weight loss! Not only do we have a proven weight loss program, but also personal care products, digestive health products, energy and fitness products, immunity solutions, heart health products, etc.

Having a home base business won’t make you dread doing your taxes. You will be looking forward to writing off products that made you lose weight and look amazing.

How about products your family use everyday? Shampoo, soap, skin care, bath and body care, healthy aging products, body essentials, hair essentials, fragrances, children’s health products and so much more. You can write off all those products too. You get to buy your household products from your own business and the best of all is that you get to turn your family expenses into business expenses.

How can this not be good management. You have the chance to turn your personal expenses into business expenses.

Here are examples of turning your personal expenses into business expenses.:

Normal family expenses:

$20,000 per year =

  • $4845 in taxes non deductible
  • $1530 in CPP SS non deductible
  • $1100 in gas non deductible 10 miles per day
  • $6250 daycare non deductible $125 p/w
  • $1250 for meals at work non deductible $7.00 p/d
  • $1200 dry cleaning etc non deductible
  • TAKE HOME PAY – $1,113.00 per year!
  • $110.00 per month to put up with a BOSS

Tax benefits of a home based business:

Tax Benefits – You can use these tax savings

  • A portion of your rent or mortgage
  • A portion of your mortgage interest
  • A portion of your utilities and insurance
  • All of your internet connection bill
  • All of your cell phone bill
  • All of your computer, printers, modems & software
  • Your product use as samples
  • The cost of up to 3 cars through your home business
  • The cost of medical, dental, care for you, your spouse and your kids. (Self insured Med plan – your kids for expenses as their employer, employee fringe benefit)
  • Most of the cost of your family vacation by combining your vacation with business activities
  • The cost of university or college tuition for your kids By hiring them in your business, pay them same cost of their tuition

Are money signs showing up in your mind? They should be.

If you’ve always wanted to start a Home Based Business, now is the time to invest.

Don’t miss out on your dreams of becoming your own boss one day and enjoying the life, health and freedom you deserve.

How The Government Can Help Your Small Business

Did you realize the United States government can help you seek financial aid for your small business? Yes, the government does that, and it has been successfully accomplishing this since 1953.

Perhaps if you’re looking for a means to help your company grow, now would be a good time to discover how the federal government can help you with your small business needs.

In order to get a thorough comprehension of the process, let me first expose you to the government’s leading agency that is accountable for assisting the nation’s small enterprises, the United States Small Business Administration.

The United States Small Business Administration, otherwise known as SBA, is a United States government agency that was founded on the 30th day of July, 1953.

The SBA is largely responsible for rendering indirect financial aid to entrepreneurs and small business establishments. Typically, the primary role of the SBA is to provide several financial assistance programs to such businesses that have been engineered to meet essential financing needs.

In order to do this, the SBA has constituted many loan programs and financial assistance strategies which have been thoroughly developed to suit the needs of entrepreneurs and minority-owned business enterprises.

Among all of these programs, the three-most fundamental forms of assistance that is provided by the SBA are that of Guaranteed Loan Programs, Bonding Programs, and lastly, Venture Capital Programs.

How can these programs specifically help you, you ask?

For starters, the Guaranteed Loan Program will work in a manner that the SBA will assist you to seek financial assistance, instead of directly providing you with one.

Since the SBA has formed partnerships with third-party lenders, community development organizations, and microlending institutions, these third-party partners will then be able to directly provide you with loans and other forms of financial assistance. This setup is essentially similar to procuring a commercial loan, but it is easier and more efficient because the SBA will serve as your guarantor, meaning it will assure the third-party partner that you have the capacity of repaying the loan and that you will, without a doubt, repay it.

The Bonding Program, also called the SBA’s Surety Bond Guarantee (SBG) Program, can assist business contractors in obtaining surety bonds by way of standard commercial channels. To comprehend this better, a small business owner should first know what a surety bond is.

A surety bond is an agreement between a surety (someone who agrees to assume responsibility for the debt of the primary borrower in cases wherein the borrower fails to assume his or her responsibilities), a small disadvantaged business contractor and a project owner.

Through the SBG program, the SBA will enter into a contract with a surety stipulating that the SBA will take responsibility for a percentage of loss in the event that the primary borrower fails to adhere to the terms of the loan agreement.

The Venture Capital Program, however, was created to work through the SBA’s Small Business Investment Company (SBIC) Program wherein the SBA could indirectly provide venture capitals to micro businesses and micro entrepreneurs.

Small Business Investment Companies are privately owned and managed investment funds that are licensed and regulated by the SBA. These businesses could help small businesses by providing them with funds by means of debt or equity, just like venture capital, private equity and private debt funds. Nevertheless, they differ in a way that SBICs will only restrict their investments to eligible business concerns that are defined by the SBA.

If you wish to know more about the programs and operations of the SBA, you can visit their website at http://www.sba.gov/.

7 Major Bond Investing Risks In A Weak US Economy

1. Less Liquidity – In a weak US economy one of the best bond investing strategies will take into account any drop in liquidity. During a weak economy interest rates and inflation are typically very low, and this also lowers the demand for bonds of all types. This means less liquidity, and some bond investors may have a difficult time finding a buyer. Less liquidity may mean a longer time before a buyer can be found so that the investor can sell the bond.

2. Default - All bonds are held to the US Treasury Bond standard. While it is very doubtful that the US Government would ever default on bond payments, the same cannot be said of some companies and municipal entities. Usually the higher the risk of default a bond has, the better the return on the investment, but with a weak US economy even companies and municipal authorities that seem like a sound investment can default.

3. The Call Risk Involved – If the bond in question has a call provision then there is a risk of this provision being activated. For bond holders who have paid a premium this can mean a loss of investment return. When interest rates start to decline, a company or municipal entity may choose to call the bond and force a payoff, so that less interest is owed on the bond. Some bond investing strategies consider the call risk while others simply avoid bonds with this provision.

4. Bankruptcy – Bankruptcy is a very real possibility when the US economy is weak. Consumers do not buy as much and prefer to hold on to their money instead, and this can affect the bottom line of business and government both. Higher unemployment rates mean fewer taxes for government entities, and less profit for companies as well. Some cities and municipalities have declared bankruptcy in the last few years, and many businesses have also sought this protection as well.

5. Bond Credit Rating Downgrades – Few bond investing strategies consider the risk of a credit downgrade, but as recent events have shown even the US government and foreign governments are not immune from this action. If the bond issuer suffers a credit downgrade then the bond will not be as attractive to other investors, and may need to be sold at a lower return than previously believed.

6. Reinvestment Risks – When a bond matures and the investor wants to reinvest the capital in the bond market it is typically done at lower interest rates if the US economy is weak. This can mean a loss on the expected return when the capital is reinvested. If the interest rates are too low than many investors may choose not to risk the capital at all, and may simply hold onto it instead.

7. Changes in Legislation – One thing that few bond investing strategies can predict is changes in legislation. This can come in the form of changes in the tax code, changes in the regulations or requirements for the bond market, and many other changes as well. A weak US economy increases the risk that there will be new laws or regulations that affect bond holders and others in the investment sector.