Don’t Let Your Home Business Leave You Bankrupt!

For a lot of people, running their own business from home can be the perfect career choice. After all, it puts you in far more control over when you work, it gives you the freedom to work from home, and it takes away a lot of the pressure of having a boss staring over your shoulder all day long. Of course, just because there are a lot of positive things about it, doesn’t mean that it doesn’t also involve some challenges as well! One of the most significant challenges that you’ll face when trying to run a business from home is, of course, financial. Sure, you don’t have anyone breathing down your neck all day, but that means that the buck stops with you, including any and all financial responsibilities. With that in mind, here are some ways that you can avoid letting your home business leave you bankrupt.

Getting into debt

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There’s a pretty good chance that, unless you have a pretty hefty amount of capital just sitting around, you’re going to need to take out some kind of loan in order to get your business off the ground. This isn’t a bad thing by any means and many business loans offer fantastic rates, but far too often small business owners turn to creditors to solve all of their financial problems. This can lead to a lot of accumulated debt from a lot of different direction. If you have a look at this debt consolidation loan payment calculator, you can see that, by consolidating your debts, you can make things much easier for yourself. Sure, you’re still going to need to pay back the loan, but having a single, smaller loan rather than multiple debts can be a lot easier to manage.

Undercharging

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When you first start your business, it’s tempting to do anything that you need to in order to make yourself tempting to potential customers. This leads many business owners to make one of the worst possible mistakes: undercharging for products and services. Sure, you might think that by doing this you’ll be able to undercut your competitors but in reality, you’re just putting yourself in a position where you’re not earning a fair profit on your products. Even if it does work, eventually you’ll want to grow your business, and that will require higher earnings, which could lead you to want to increase your prices. However, by raising your prices, you’re likely to end up upsetting many of your customers who were used to paying the smaller amount that you’d been charging previously. There are plenty of ways to compete with more established companies, but undercharging is certainly not one of them.

Of course, this isn’t going to be the only difficulty that you’ll face as a business owner. You’ve got to be aware of just how much responsibility such an endeavor requires. If you’re not ready to deal with all of that responsibility, then running a business might not be for you after all.

The risk of lending money.

There are times when the person you least expect to betray you happens to be the very person who will do it to you.

Get my drift?

Well, a friend of mine did that to me. It was almost a year ago when he talked to me, asking to borrow money. I normally don’t allow this but since he was a very close friend of mine, I lent him some. Well, I should have just told him to go and apply for a loan or cash advance rather than lend him the money myself. It will be a year by end-June and I haven’t heard from him since. I was hurt, to say the least. But well, I took the risk and I just have to suffer the consequence.

I suggest that instead of borrowing money from family or friends, there is a cash advance facility available for a person. Impersonal yet very helpful. Try that first before anything else.

How come?

How come when you have so many cash lying around, you don’t know what to buy. But when you don’t have any excess funds with you, you find so many stuff you want to hoard!

I recently found out that there are so many cute trinkets and other fancy schmancy stuff in a novelty shop I frequent. I also discovered last week a new shop that carries so many cute stuff I like. Last weekend, I felt like taking my sisters to this buffet/eat-all-you-can restaurant that my friend took me to on her birthday. I found a way to easily buy books abroad without the staggering shipping costs and delay in shipment but I don’t have enough to pay for it.

Sigh.

How come I see so many things I like but I don’t have enough to finance all of it!!!

Argh!

Do you love your job?

There are a number of things I’ve learned over the past few years that I keep in mind and remind my love ones of. One of those things is the following…

quote-on-job-confucius

Confucius said that if you enjoy what you are doing, it stops being a job, a chore, a responsibility. What you enjoy doing becomes a normal part of your daily routine, your life. I do believe that.

You know when I was still in high school, I wanted to become a journalist. I am not a great writer but I love writing with a passion! I knew then that if I could get the proper education, I would be fairly decent in my writing skills. My mom had other plans for my future. She told me that it would be better for me to take up Accountancy. She said that there would be more jobs waiting for me if I become an Accountant. She’s right! I got a lot of job offers even before I graduated. I was able to start as soon as I passed the board exams. I forgot that I wanted to become a journalist for a while because I learned to love my profession.

But you know what? My love for writing was not diminished. It is still here even though I am writing numbers more than words. I am still an accountant but I went back to my first love which is writing. I realized that there are just some things in life that can make you happy even though you are not getting as much financially as you want to. That’s writing for me. I love it so much that it doesn’t feel like work even when I am spending hours and hours laboring over a paper. I also felt this way in doing accounting work but maybe because it wasn’t really my first love, it diminished over time.

Do you love your job? This is a simple test that you can do to know for sure. Spend more than eight hours doing your job and if you are not smiling anymore by the end of the day, you better find something else to do. Or stop and look into yourself if what you’re doing is still worth it.

Financial Planning: Umbrella or Limited Status for your Company

Sasha Says

As a start-up, one of the first things you need to decide is whether you should trade as a limited company or use the services of an umbrella company. You aren’t an accountant, so you’ll be forgiven if you feel overwhelmed by such a decision.

In the following paragraphs we’ll breakdown the key benefits of both options to help paint a clearer picture as to whether you should be limited or umbrella company. It is important that you seek the advice of an accountant before making a final decision.

The key differences between umbrella and limited
Both options are extremely different from one another, so it is vital that you understand the key advantages and disadvantages of both options before you are able to make a decision.

Limited Company
In a nutshell, the limited company route will see you incorporate your own limited company and become the director. You’ll be in charge of invoicing and the day to day running of the business (with the help of your accountant) and it is the most tax efficient way of trading, seeing you typically take home around 75% to 80% of your gross earnings.
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Never give up!

never give up

One thing that I intend to do this last month of the year is to prepare for the coming 2015. I intend to be stronger, braver, and better overall this coming year. I intend to have MORE and that means working even harder than I ever did in my whole work life.

I need to beef up by being healthy. I intend to go back to being a corporate rat and that means fixed working hours. I need to condition myself to waking up early again, braving the rush hour and traffic jams, and working for a boss again.

I can do it! I won’t give up!

You should, too.

🙂

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