Only Fools Rush In

I asked my husband to share some of his wisdom about jumping into business with people. Here is what he emailed me. I hope you find it useful.

Partnerships are like marriages. They can be extremely rewarding--both financially and personally. They can also be an extrodinary source of misery--both financially and personally. Also like a marriage, it's generally much easier to jump in than to "jump" out. Time and money spent at the front end, discussing some important things with a legal advisor can make all the difference in making a good relationship better, and preventing train wrecks before they happen. Here are some things to do BEFORE going into business with someone:

1. Get a credit report and a financial statement and possibly even a background check--even if the potential partner is someone you know socially. The more you plan on investing in this joint venture (in time or money), the more important this becomes. Credit reports give a running history of a person's actions with money and monetary promises. Does your prospective partner have a trail of broken financial promises? This is extremely important to know before you're in business with someone. I've had 2 clients just in the past year that lost about a half of a million dollars each because they failed to do this very thing with people they knew socially.

2. Get a lawyer to help you structure the legal agreement between the partners. Just like a marriage counselor would strongly recommend that certain topics be discussed before saying "I do", an experienced lawyer will have lots of wisdom about the kinds of things that should be nailed down in writing before there's a lot more at stake. If you're already in business and haven't gotten the following things resolved in writing, get your partner(s) and yourself to an attorney to get them taken care of a.s.a.p.

3. Get certain aspects of the relationship in writing. Here are just a few things that are too important in a business relationship to leave undiscussed or unwritten, and with the help of attorney:

- What are each of us going to put into the business & when (money, time, certain tasks)?

- When and how is money going to come out of the business? Are there any salaries or is one or some or all of us waiting on profits, which could take days, months, or years?

- Who makes what decisions? Which ones are yours? Mine? Ours?

- How do I get out if I want out? (You can have an agreement that will create a predetermined and mutually fair way for one partner to be bought out.)

The bottom line is getting a prospective partner's financial history and, if that part is acceptable, getting everyone's expectations for money, time, control and exit strategies on the table and in writing. If you do that, you'll keep lots of avoidable problems from killing your business once its underway. Getting a good CPA involved from the beginning who will keep all the partners informed about the state of the business is also very helpful. Partnerships can be a great thing, but only fools rush in.

T. N. Freeman II - Law Offices
600 Northlake Boulevard
North Palm Beach, FL 33408
Tel: 561-845-0560
Fax: 561-658-0823

Tuesday's Efficiency Tip

Join us as we explore ways to make our lives and business more efficient. Every Tuesday we will share a new tip, so be sure to check back!!

Business Notebook

If you're anything like me, you write names, phone numbers, dates and other important information on little pieces of paper that can be found all over the house! It's great to jot things down, but if you can't find them, well...!

In my former career, real estate, I quickly learned that I had to have my notes, phone numbers and daily "to-do" list in one place. I purchased a medium size spiral notebook and recorded everything in that book. Whether it was jotting down a message (with phone number), making a "note to self" or listing my daily chores, I made sure it was all in one place. The great thing about doing this was that I always had records of names and phones numbers and would often flip through my pages to find a number that I really needed.

I have carried this tradition into my home based business and really benefit from it. I have a small notebook that sits at my desk where I record everything from phone numbers, ID and passwords to my daily "to-do" list. I have found that I no longer have tons of sticky notes or individual pieces of paper floating around. It has really simplified my life and made it more efficient!

I also have a mini notebook in my car. It is really helpful for jotting down phone numbers or even writing down business ideas when they pop into my head. Of course after reading Kim's post about Driving Mistakes, you might want to consider pulling over before writing!!

Make it a point to purchase a notebook and see how convenient and efficient it is to keep everything in one place! Until next time!

Learning From Others

One of the great things about our forum is that I am constantly learning from everyone. Just the other day I came across this great entry by a fellow member and I wanted to share. Enjoy!

There are several secrets that SUCCESSFUL WAHM's know... Would you like to know what they are????

1. Working at home actually takes WORK. That's the TRUTH. No matter WHAT business you choose, NOTHING will work unless YOU do. It never ceases to amaze me the amounts of women who actually turn down a good opportunity b/c they believe that there is a REAL business out there that is FREE to start, takes NO effort to build, earns HUGE income in no time at all, and you NEVER have to speak to a living soul (it's all done through the website!) YEAH RIGHT!!! If ya'll find that, let me know!

2. You must truly LOVE what you do. You can't just be in it for the money because the TRUTH is, that eventually someone else will come along that loves money MORE than you do and they will out run you. Can you answer this question honestly: If I make NO money with this opportunity, would I still PERSONALLY use/buy this product/service? If you can't answer YES, then no one else will.

3. Sometimes, you must accept a period of imbalance in order to reach long term goals. The TRUTH is that initially, you might have to give up something that you LIKE in order to obtain something significant for someone you LOVE. This applies in ALL areas of life. I didn't just show up at college and say, "Ok. I'm here. Give me my degree and I'll be on my way." (I wish!). It took years of hard work and sacrifice to get that education. Why would we expect a business to be any different? Even though my children were small when I started, I sat down when them and my husband to explain WHY mommy was going to be working from home and what I needed/expected from them. As my children have gotten older, I've used a rewards system to elicit their cooperation. (a trip to the dollar store, a family vacation, 30 minutes extra TV at bed time, etc.) After all, mine is a FAMILY business and it can't be done successfully without my entire family's support.

4. Success leaves clues. The TRUTH is, the BEST way to be SUCCESSFUL is to watch and learn from someone who is ALREADY doing what you want to do. Then, do what THEY do! If you're merely curious, keep on dreaming of success. If you're SERIOUS, let's TEAM UP and MAKE it happen! May you obtain ALL you work for...

Edie McRae--WAHM of 2
www.BringMomHomeNow.com
I'm just an ORDINARY mom with EXTRAORDINARY ambition!

More Thoughts...

Several days ago I blogged about what to look for in a network marketing business and while I covered some key areas, after blogging I got thinking of some other points to highlight!

1. Leverage
Suppose you saw a great movie, recommended it to some friends and family and then a couple of weeks later you received a "thank you" check from the movie theater...wouldn't that be nice! Well, that is literally what you are doing with your network marketing business. Every time you refer someone to your business and they buy the products, the company sends you a thank you check. And what if you brought some others on your team to help spread the word? Just imagine what your check would be like if you and three others were spreading the word each and every day and you were being paid for everyone's efforts. If you like this scenario, then you'll like network marketing. This industry allows you leverage your time and money while helping others at the same time. This is truly one of the best business concepts!

2. Global Office
Imagine how convenient it would be to work wherever you wanted. Perhaps it would be on your couch or sitting outside with your kids or even working while traveling. Thankfully with the modern convenience of the internet and cell phone, you can work your networking business virtually anywhere. The requirements of working from an office are long gone and this is very appealing to many people! So, who can you think of today that would like to leave their 9-5 behind and start working from home?

3. It's A Networking Business
Let's face it, if you want anything in life, you have to work for it. It's just the same way with any business venture that you enter into. Whether you find the perfect network marketing business or not, it will require a lot of time, effort and some money. You should realize up front that in order to be successful with this business you will have to step out of your comfort zone and work harder than you even thought possible. Of course the payoff can be very nice, but don't be surprised if you aren't getting those large checks right away. It could take months, even years, to get to the highest level in your chosen company. But don't be discouraged, if you decide that you want it, you can achieve it!

4. Keep Learning
Starting your own networking marketing business is like going back to school. In order to be successful, you have to be willing to learn and stretch yourself. You should be reading everything you can about the industry and about your company. And most importantly, you need to be working on yourself. Self motivation is crucial in this business. Therefore, read books to help you in this area. Become the best person you can be and others will naturally gravitate to you!

Hopefully these thoughts will help you on your path to finding the right business. Again, if you would like help in finding a good business fit for you, please visit the Smart Moms teach at our website: http://www.smartmoms~smartbusiness.com/. We are here to help and we also have a wealth of knowledge to help you become successful!

Seriously, check it out...

I am getting ready to go on vacation this Friday and, as always, there is more to do than time! I was looking over my long "to-do" list and calendar and noticed quite a few people that I've been meaning to contact or who's birthday is coming up in June that I'd like to remember. Now, I don't know about you, but I love getting good mail - not junk mail. It's wonderful when someone has been thoughtful enough to send correspondence that you can hold and put on the fridge. :) Don't get me wrong, email is great but sometimes a card says it best. Well, since I am a Smart Mom, I have a shortcut; a way to email actual cards that come to people's home mailbox. So...tonight I've been having a great time, with my computer, sending cards that will arrive in all my contacts and friends mailboxes while I'm on vacation! Rebekah posted about staying in touch with people a while back but I wanted to encourage everyone again to check it out for themselves and have a free card on us!

Whether you are an MLMer or in a traditional business – you have clients and friends that would love a card from you. If you send holiday cards every year, this will save you time and money, be attractive, personalized and unique. Not to mention FUN! Now I send cards to people “just because” and I don’t have to drive to the drugstore and post office to do it!

Seriously, check it out.

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Choosing the Right Company

If you are considering starting a home based business, it can be a very overwhelming process. Just taking a look at all of the various companies could send someone over the edge! In order to help you with this process, I have outlined several key areas that you should evaluate in a company before joining.

1. Cutting-Edge Consumable Products
This is one of the most important factors to considered...what does the company sell? Look for a company that offers consumable products ~ items that people will buy over and over again (i.e. skin care, cosmetics, vitamins, weight loss, internet downloads, etc.) . If the company is selling a high quality, in demand product, then your customers will consistently buy from you, thus creating a steady stream of income.
It is also important that you personally use and truly like the products. You will be a walking testimony and people will expect your honest opinion!

2. Timing and Trends
If a company was selling records in our current market, they would quickly go out of business. Consider this same concept when evaluating companies. It is estimated that the health, wellness and anti-aging industry will be a 1 Trillion dollar empire by 2010. If you would like just a small percentage of this growth, then find a company that offers health, wellness, and anti-aging product(s)! Another big trend is the Internet, more specifically, downloadable content. More and more people are downloading music, movies, video games, ring tones and list continues. Finding a company that embraces this trend is like hopping on the money train. You just can't go wrong!

3. Leadership and Commitment
When looking at a company be sure to evaluate their growth as well as their leadership. Growth will give a good indication if their products are selling and if they are embracing current trends and the leadership will show if the company can support such growth. Leadership can often be a key component that is overlooked, so be sure to do your homework. Often times you will hear that an older company is a solid, more reliable company. Although this is often true, be sure not to discount a newer company that offers a revolutionary concept. If a newer company offers a product that is embracing modern trends, then getting on when it's young might prove to be a wise investment!

4. Large, Expanding Target Market
Where are the products sold? Are they only in the United States or are they also available in foreign countries? If they are sold over-seas, how does the company help you in reaching those markets (internet access, marketing materials, etc.).

5. Internet, Support and Marketing
How are the products sold and distributed? Can the products be purchased on the internet? What is their return policy? What is their retention rate (meaning how many people continue to buy over and over again)? Does the company have an appealing, high tech website? What type of training do they offer (this is a crucial area where a lot of companies lack)? What types of marketing materials do they offer? Are you impressed with what you see? These questions just scratch the surface of important things to consider, but will give you a solid start when researching.

In conclusion, the company you choose must be a good fit. You have to be confident about the products, have faith in the company and know that you will be equipped with the right training and knowledge to actually make money!

If you would like additional information or would like to speak personally with an expert in the field of home based businesses, please contact us at info@smartmoms~smartbusiness.com. We are here to help and would happily assist you in your efforts!

Home Business Record Keeping

Spring is the time for cleaning out and cleaning up! This can really apply to your business, especially if you work from home. Record keeping is important to the integrity and foundation of your business so here are a few things to check off your list as you get organized this spring!

1 - Separate Checking Account - Establish a separate checking account and use the account for business transactions ONLY. This is the account you should deposit your business checks into each month and pay bills from, such as your business credit card bills. Transfer funds from your business checking to your personal accounts as needed.

2 - Small Business Credit Card - Establish a small business credit card and use it ONLY for business transactions. Find a card with bonus points or frequent flyer and reap the rewards for buying business supplies and items you would be purchasing anyway. If you reserve this card for business transactions only then accounting at the end of the year will be much simpler.

3 - Scheduling Calendar - This will be one of the most important documents you have. The calendar is the basis for daily scheduling, logs for documentation of business activity and tracking the business use of your automobile. Maintaining your calendar on a daily basis will enhance your ability to keep your business organized.

4 - Expense Documentation - The definition for allowable business expenses is that they be "necessary and ordinary in the course of running your business." The key to documentation is that you collect the documents as you go through the year. Then it won't be overwhelming come tax time. Make a file system and as you have expenses, save the paperwork and/or receipts to show as proof of the expense. Remember, the IRS cannot read your mind and they need to see why the expense was "necessary and ordinary." To cover your bases, don't just rely on the credit card statements as proof. Note the event, lunch, meeting, trip, mileage in your calendar and save any documentation (schedule of events from a conference etc.)

5 - Establish a home office - Having a place to work is necessary to running a successful business and it is an allowable deduction for tax purposes, however, the IRS has specific requirements. It must be an area of your home that is used exclusively for business purposes. It cannot be your kitchen table with a laptop. The tax benefit can be as much as $1500 to $3000 a year in deduction from your business income. That translates into $450 to $900 in actual tax savings. So set up a specific space with definite boundaries and no other use, and use it for your business!
Then, calculate the ratio of the square footage of your home to “office” and apply it to overall expenses required to maintain your home.

6 – Estimated Tax Payments – It’s not all yours! You need to realize from the beginning that as a business owner of a home based business, the income from your business does not all belong to you. It is your responsibility to either set aside money in a savings account to pay your taxes or make quarterly payments to the IRS. Talk to your CPA or Tax Attorney for more specific information relating to your situation. If you are in the state of Florida (like me) my husband is a tax attorney practicing in the areas of trusts, estates and business planning. His email is freemanlaw@bellsouth.net.

7 – Employing Family Members – If you have children under the age of 21 you can hire them to work for you. You can pay then up to $4750 a year and they will not pay taxes on that income. The requirement is that they service they provide is necessary to your business (filing, shipping, deliveries, organizing etc). The key is to set up a checking account for them and issue them a check from your business. Of course, they must be old enough to actually provide a service to your business!

Work At Home Opportunities

The four of us are on a few different forums for work at home moms (but the best one is our Smart Moms forum!)and there have been many questions about people looking to work from home but don't know what to do or how much money they will have to spend. Some have even asked for free things to start. With our vast amount of learning we have encountered over the past few months, we have compiled a free report to give to anyone looking to start a home based business. We have ideas for working in direct sales, increasing your business in direct sales, internet based businesses (not direct sales) with you own website, and internet businesses with someone else's website you utilize. This report is almost in the final stage (as of today- if you are reading this in later days, I hope it is done!) and we want to share it with anyone looking to start or do better in a home based business. Subscribe for our newsletter (on the sidebar of this post) and we will send this free report to you as soon as it is finalized, within the next few days. You will not want to lose out on this MONEY MAKING report- plus it is free!

Articles

Through our studies we have learned the importance of articles. Not only do they add content to your website, but they can also be a great source for additional traffic. By using different article submissions sites, you can expose your articles to literally thousands of people. Just imagine if only a handful of those people read your article and clicked onto your site? Your traffic would increase overnight...with just a little bit of effort!

To support all of the hard working moms, we have added a Article section on our forum. Feel free to stop by and submit your articles. You never know who will take your article and post it on their website or ezine!! http://smartmoms.freeforums.org/viewforum.php?f=23

Looking forward to reading all of your great content!!

Build Your Business With Traffic

Being fairly new to the internet commerce business plan, I am always learning more about how to increase traffic to our wonderful work at home mom site that we have created and the wonderful ones that are in the works. Without traffic, your site/blog/store is worthless. If it looks great, but no one is looking, what would be the point in working so hard at it?

First, we have found THE GREATEST web page designing program called Site Build It. We looked at this at the beginning of our internet venture and did not consider it because we did not want to spend the money so soon. Our mistake. Site Build It completely teaches us all of the things we needed to know earlier! We could have saved so much time and possibly earned so much more. The action plan is laid out for you with brainstorming features and even a way to choose a great domain. Click here for some work at home mom testimonials. Don't be like us and choose the cheap route- do what works first!

Second, we have joined forums with other work at home moms that are so helpful in offering information to help others. In her blog, Andrea has written a great post on getting traffic to your site. Check out her ideas.

We have a source for information for you! First you can go to the sidebar and subscribe to our ezine. We will send you tips and information to improve your traffic and your business. We also have a great new forum for Smart Moms. Come on over and join us!