Objective – Starting just about anything with an objective is of tantamount importance if you want to increase your chances of success. Understanding not only what you’re doing but why you’re doing it can make all the difference between failure and success.
All too often I’ve seen people start businesses for the wrong reason or even for no real reason at all. Check your motives and state your objectives clearly. It doesn’t matter what your reason is inasmuch as the fact that yours is clearly defined. It could be to earn some side money to supplement your full-time job or to pursue your life-long dream of independence. If you don’t define it you can’t measure it. Defining it may not be as easy as it sounds but it doesn’t cost you anything in cash. That’s the important thing. Invest your time in planning and research before you spend any money.
Reasons For Starting a Business – Emotional vs. Logical
Here are some of the most common reasons people start companies:
- Independence – you can write your own ticket, be your own boss.
- Opportunity – entrepreneurs can get rich.
- Tax Benefits – start taking deductions that are connected to starting, building and managing your business. This course is a good example of a business deduction and so is any other publication or subscriptions connected to your business. Sorry but you can’t write off your golf membership dues.
- Tax Planning – from retirement plans to increase your take home pay.
- Asset Protection – Protect your personal assets by incorporating. Keep corporate assets away from personal creditors.
- Wealth Creation-business-if built correctly a small business can have great value and be used in estate planning.
Let’s take a look at the most logical reasons for starting a business, almost immediate tax benefits and tax planning. Many new businesses generate little, if any revenue right away yet the potential tax deductions start from day one. For example, by converting personal use property into business use you can depreciate your car, office furniture and equipment.
What’s your reason for starting a business? Entrepreneurs tend to be driven by emotion which is needed but sometimes we chase ideas that defy logic. For instance, Thomas Edison created the light bulb on his 10,000th try. I think most people would have quit after a few thousand. Luckily he was successful but not many have his drive. Understanding the emotional and logical reasons behind going into business will help you make more informed decisions, increasing your chances of success.
The best tool I’ve ever come across in tackling this issue is Napoleon Hill’s Definite Chief Aim. His 1st version of the concept appeared in “Law of Success” and he laid out even more specific instructions in “Think and Grow Rich” I have included worksheets to cover two different formats I have used. It does not matter which form you use but it does matter that you incorporate the repetitive aspect of the exercise. This is how your statement will be implanted into your subconscious and put you in the best position to succeed. Monetary investment-Zero!