How to create tremendous luck at all times
1. Expand your network.Plain and simple, the number of opportunities you will be exposed to will be determined by the size and quality of your network. The more influential people you know, the more opportunities will come your way.Now I’m not saying you should look at every person you meet with dollar signs in your eyes. That’s the fastest way to make a bad impression. Instead, work on being more outgoing, friendly, and helpful. Meet as many people as you can, and find ways to add value to the lives of those you find interesting. In addition, develop strategies to keep in touch and keep adding value to their lives. What will happen, and this never fails, is that they will bring you opportunities that will transform your life.
2. Expect to succeed.It is an absolute fact that there never is a lack of opportunity. Even in the most difficult of times, you had more potential opportunities than you could have ever acted on. The problem was that you were not noticing them.Your expectations are critical. Lucky people expect great things to happen to them, and unlucky people expect to be unlucky. Both fulfill their expectations. In a study done in the UK, lucky people almost always found money placed in their paths, while unlucky people walked right past the money without even noticing it. The opportunity was the same for both, but the expectations of the lucky people trained their brains to spot it.
3. Trust your intuition.People who are lucky in business, investing, and even in love have something in common: They listen to their gut instincts.Your intuition is your subconscious mind trying to communicate with you. It does so by creating a feeling in your stomach or heart. This feeling is meant to guide you in the right direction - and lucky people heed it. Unlucky people, on the other hand, often ignore their gut instincts and act based on fear, greed, or some other negative emotion. Those are actions they almost always regret.Have you ever noticed that your gut instincts are usually right? The former CEO of GE, Jack Welch, even wrote a book titled Straight From the Gut in which he said leaders should make decisions based on intuition.
4. Turn bad luck into good luck.There are two sides to every situation, a good side and a bad side. The side you see depends upon the way you look at it. Lucky people have a knack for seeing the good, even in the worst circumstances. This creates opportunities out of the ashes of disappointment.Okay. I’ve given you four things to focus on that I guarantee will generate more luck for you.
The question is, will you apply them? If you do, and do it consistently, you will get to live the life most people only dream about.I’m not saying this is going to happen overnight (though it might). But if you give it time, it will happen!
Wednesday, August 19, 2009
Thursday, August 13, 2009
slash your tax bill with your new home business
Before you register as a sole proprietor, you must consider two facts about the legal relationship with your client. You see, your client is not required by the Income Tax Act to withhold employees’ tax (PAYE) from money they owe you if you are an independent contractor. The only exceptions are when:
* your services must be performed mainly at the client’s premises, and
* you are subject to the supervision and control of your client as to the manner in which your duties are performed or as to your hours of work.
If you employ three or more employees on a full time basis (excluding relatives) throughout the year, your client may not under any circumstances deduct PAYE from the money they owe you. Why operating as a sole proprietor will help you avoid the 80% rule If 80% or more of your income is from one client you should definitely be operating as a sole proprietor.
If you operate as a close corporation, company or business trust, your client has to withhold PAYE when more than 80% of your income comes directly or indirectly from any one client. But the 80% rule doesn’t apply to you if you operate as a sole proprietor. Claim these business expenses and bank more money each month If you work from home through a close corporation, company or trust, the taxman sees the entity as a personal service company or trust. So you won’t be allowed to claim your home office expenses as the premises and business assets are not used wholly and exclusively for business purposes.
But as a sole proprietor you can claim a tax deduction for all expenditure incurred in the production of your income. If you work from home, you can claim a deduction on your direct and indirect business expenses. A direct expense would be something like the purchase of a fax machine, while an indirect expense would be travel costs for business purposes. Earn interest while you wait to pay tax… If you draw a salary from a close corporation, company or trust, you must pay PAYE on that salary by no later than the 7th day of the following month.
As a sole proprietor, you are only required to pay provisional tax every six months on the taxable income generated over the period i.e. after the deduction of your business related expenses. This gives you a huge cash flow advantage to protect you against the harsh realities of fluctuating earnings. Plus, you’ll be able to earn interest on your earnings while you pay to SARS. Compliance is easier and cheaper As a sole proprietor, working from home, with no employees, you don’t have to submit monthly PAYE, SDL and UIF returns to SARS. If your turnover is more than R300,000 per annum, you only have to submit VAT returns bimonthly.
You are also not required to engage the services of an accounting officer as is the case with a close corporation and an auditor in the case of a company.Remember, making your new business a success is hard enough. Operating as a sole proprietor will help reduce your operational costs while you enjoy the tax benefit of deducting your home office expenditure.
* your services must be performed mainly at the client’s premises, and
* you are subject to the supervision and control of your client as to the manner in which your duties are performed or as to your hours of work.
If you employ three or more employees on a full time basis (excluding relatives) throughout the year, your client may not under any circumstances deduct PAYE from the money they owe you. Why operating as a sole proprietor will help you avoid the 80% rule If 80% or more of your income is from one client you should definitely be operating as a sole proprietor.
If you operate as a close corporation, company or business trust, your client has to withhold PAYE when more than 80% of your income comes directly or indirectly from any one client. But the 80% rule doesn’t apply to you if you operate as a sole proprietor. Claim these business expenses and bank more money each month If you work from home through a close corporation, company or trust, the taxman sees the entity as a personal service company or trust. So you won’t be allowed to claim your home office expenses as the premises and business assets are not used wholly and exclusively for business purposes.
But as a sole proprietor you can claim a tax deduction for all expenditure incurred in the production of your income. If you work from home, you can claim a deduction on your direct and indirect business expenses. A direct expense would be something like the purchase of a fax machine, while an indirect expense would be travel costs for business purposes. Earn interest while you wait to pay tax… If you draw a salary from a close corporation, company or trust, you must pay PAYE on that salary by no later than the 7th day of the following month.
As a sole proprietor, you are only required to pay provisional tax every six months on the taxable income generated over the period i.e. after the deduction of your business related expenses. This gives you a huge cash flow advantage to protect you against the harsh realities of fluctuating earnings. Plus, you’ll be able to earn interest on your earnings while you pay to SARS. Compliance is easier and cheaper As a sole proprietor, working from home, with no employees, you don’t have to submit monthly PAYE, SDL and UIF returns to SARS. If your turnover is more than R300,000 per annum, you only have to submit VAT returns bimonthly.
You are also not required to engage the services of an accounting officer as is the case with a close corporation and an auditor in the case of a company.Remember, making your new business a success is hard enough. Operating as a sole proprietor will help reduce your operational costs while you enjoy the tax benefit of deducting your home office expenditure.
Wednesday, July 29, 2009
7 Steps to get any bank begging to finance you Technique
#1: Use clever, hidden psychology
Be clear about what your business is offering. For example, if you want to run a bar you might think you’re selling beer – but that’s not really what makes a bar or club a success. After all, ALL clubs sell beer, so you’re not going to excite anyone with that idea. Instead, think deeper. What’s your venture really about? In this example, it’s about entertainment... People go to bars to satisfy a social need, not simply to booze. They could do that at home for a third of the cost. So sell the idea of what will make people go to your bar rather than the one up the road.
#2: Expenses are more important than profits!
Don’t be afraid to show expenses. In fact, flag them up loud and clear. Show one-off set-up costs, show a marketing budget (you’ll DEFINITELY need to advertise), show the direct costs of your product... If you show the costs, you’ll show you understand your market and what’s needed to break it. So don’t go in with wild claims that you can turn R10 of their backing into R1 million overnight. That’s as crap as a get-richquick scheme and you wouldn’t buy into one of them, would you?
#3: Wow them with your ROI
Try to tie your costs into return on investment (ROI). Banks like clear figures that show that if R10,000 is invested then it will lead to R100,000 of income, for example. The tighter the link between the investment from the bank and the return – the better this will read to your prospective investor – your bank. Include goals and milestones in your plan that demonstrate how you will be measuring your success along the way...This shows to your bank that you intend keeping “on the case”, and they know from dealing with many new businesses that monitoring progress is a key factor in business success.
#4: Use the power of innovation
Demonstrate how innovative you and your business can be... Banks like to see creativity and even if your business concept or product does not set the world on fire with excitement, the way that you run your business can. So, introduce new and interesting ways of promoting your business. For example, targeted ads for women-only car insurance now appear on the back of cubicle doors in the ladies loos of many highway service stations! An idea like that’s enough to make even a fairly dull business idea sound interesting!
#5: Get rich slow – not quick!
Impress your bank by showing them you’ve a well thought out strategy for future growth – and that you want them to work with you at every stage. Show your bank a short, medium and longterm plan such as your initial set-up, three years and five years. Your bank manager will see that you have thought your way through the issues and how your business is likely to grow long term. And, if you talk about this long-term plan with confidence, the bank manager will actually start to picture your business being around for five years, 10 years and longer.
#6: Use realistic optimism
At all stages show your bank you’re optimistic about your success, but realistic about the constraints along the way. All businesses have ups and downs and to suggest otherwise would show a level of over-optimism that would make your bank distinctly nervous. So, introduce a healthy dose of realism into your plan and show that you are ready to face the challenge!
#7: Show them ‘Plan B’
Managing risk can be the make or break in any venture – and yours will be no different... If you want to make the big bucks, you’re going to have to take some chances. And you need to show the bank what you’ll do when things go wrong. And they will. Of course, your “rights” should heavily outweigh your “wrongs”. But banks will want to see you have a Plan B in the event that one of your ideas flops. Identify the major risks to your business in your plan and then show how they’ll be overcome by creativity, monitoring and good management. In other words, you should answer the difficult questions before they ask them!
Be clear about what your business is offering. For example, if you want to run a bar you might think you’re selling beer – but that’s not really what makes a bar or club a success. After all, ALL clubs sell beer, so you’re not going to excite anyone with that idea. Instead, think deeper. What’s your venture really about? In this example, it’s about entertainment... People go to bars to satisfy a social need, not simply to booze. They could do that at home for a third of the cost. So sell the idea of what will make people go to your bar rather than the one up the road.
#2: Expenses are more important than profits!
Don’t be afraid to show expenses. In fact, flag them up loud and clear. Show one-off set-up costs, show a marketing budget (you’ll DEFINITELY need to advertise), show the direct costs of your product... If you show the costs, you’ll show you understand your market and what’s needed to break it. So don’t go in with wild claims that you can turn R10 of their backing into R1 million overnight. That’s as crap as a get-richquick scheme and you wouldn’t buy into one of them, would you?
#3: Wow them with your ROI
Try to tie your costs into return on investment (ROI). Banks like clear figures that show that if R10,000 is invested then it will lead to R100,000 of income, for example. The tighter the link between the investment from the bank and the return – the better this will read to your prospective investor – your bank. Include goals and milestones in your plan that demonstrate how you will be measuring your success along the way...This shows to your bank that you intend keeping “on the case”, and they know from dealing with many new businesses that monitoring progress is a key factor in business success.
#4: Use the power of innovation
Demonstrate how innovative you and your business can be... Banks like to see creativity and even if your business concept or product does not set the world on fire with excitement, the way that you run your business can. So, introduce new and interesting ways of promoting your business. For example, targeted ads for women-only car insurance now appear on the back of cubicle doors in the ladies loos of many highway service stations! An idea like that’s enough to make even a fairly dull business idea sound interesting!
#5: Get rich slow – not quick!
Impress your bank by showing them you’ve a well thought out strategy for future growth – and that you want them to work with you at every stage. Show your bank a short, medium and longterm plan such as your initial set-up, three years and five years. Your bank manager will see that you have thought your way through the issues and how your business is likely to grow long term. And, if you talk about this long-term plan with confidence, the bank manager will actually start to picture your business being around for five years, 10 years and longer.
#6: Use realistic optimism
At all stages show your bank you’re optimistic about your success, but realistic about the constraints along the way. All businesses have ups and downs and to suggest otherwise would show a level of over-optimism that would make your bank distinctly nervous. So, introduce a healthy dose of realism into your plan and show that you are ready to face the challenge!
#7: Show them ‘Plan B’
Managing risk can be the make or break in any venture – and yours will be no different... If you want to make the big bucks, you’re going to have to take some chances. And you need to show the bank what you’ll do when things go wrong. And they will. Of course, your “rights” should heavily outweigh your “wrongs”. But banks will want to see you have a Plan B in the event that one of your ideas flops. Identify the major risks to your business in your plan and then show how they’ll be overcome by creativity, monitoring and good management. In other words, you should answer the difficult questions before they ask them!
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