How to Find a “Soulmate” er… Good Business Partner

If you have read our older blogs, we made a post about how working with your spouse as a business partner can be very effective if you treaded carefully. Now, in case you do not have a spouse, we will talk about how to find a business partner with the right qualities.

If you believe that you as a business person can work better alone, we have an example that may change your mind. Written from lesseverything.com, they had an example of a man named Allan who had been running his own consultant business just fine alone. He had a father who was a successful entrepreneur for decades that told him not get a business partner. Eventually, Allan met Steve during the Summer 2006. Steve could take Allan’s ideas and instantly be able to tell him why it was bad and how to make it better. Allan quickly realized that having Steve around would make him better at what he does. Additionally, he also realized that Steve could also plan and execute business better than Allan could. Allan was ideally the idea factory while Steve improved upon those ideas. Now today, they together have made an even more successful business.

Keep in mind that a business partnership is like a marriage without the sexual part. Every business decision that Allan makes will affect Steve, and every business decision that Steve makes will affect Allan. If Steve needs to spend more for the business, this will put a strain on Allan, which will affect the business entirely. In a way, it is like having your spouse spend tons of money on products that are unnecessary; you would have to keep track of their spending in order to use that budget for other important things.

How do you make a business partnership work out? Well, it’s basically the same thing as a marriage:

Have mutual respect for each other: You must always have respect for the things that both parties do, and they must collaborate and work together without any criticizing or fighting. It is a partnership and marriage, not a war between two partners.

When you have a partnership, you treat each other as if you are equals. There is no such thing as the dominator in the relationship or the captain. When you make decisions, make it together with a compromise if one party does not agree with certain factors. This would be another way to show respect for one another.

Another thing that is considered to be rare, but if you have it, do not lose it. This would be having a partner who has skills that are complementary to your skills. In lesseverything.com’s case, Allan is a designer and Steve is a developer. When you have a person who designs and another who develops those designs while improving them through the process, you can say that it works like “peas and carrots.”

There are times when you and your business partner are best friends, and sometimes you both are not, but one thing for sure us that they are always aware of how the other party is doing, and they are usually willing to help that person out. In many cases, they are trying to understand each other’s stresses and the workload.

Here are two qualities that your partner should have:

–          A real friend, spouse, or partners are willing to point out your flaws and tell you some of things that you are lacking. They are saying this because they want you to grow, they are not looking disrespect you or criticize you. And you are willing to take that in because you value their opinion.

–          They do not judge you. When you need help with a broken car, moving, or if some kind of emergency happens, who would you call? If it is 2:00am and you are unable to drive back home, who is going to drive 50 miles to help you out? If that person is willing to do that for you, consider that person a true friend. This is how your business partner should be.

Inspiring quote: “Allan says…

“I’ve always had plenty of friends, but there’s only a small circle of those that I would call ‘close friends.’ My Grandfather would tell me that before the Great Depression, he had money, a bunch of friends and a Model-T car. When the hard times struck, his family lost everything–including the friends. They only wanted to be around him when he had possessions.”

 

***ARTICLE BASED ON LESSEVERYTHING.COM***

 

Happy Holidays! Year-End Tax Saving Tips to Spend or Save for the Holidays

It looks like the end of the year is coming, and we are pretty sure many of you are still frantically shopping for gifts for your family and friends. Do you ever wish you had more money to spend for your friends and family, but just could not figure out how you can save more money?

Well have no fear! We are an Orange County CPA firm who will be here to provide tips on how you can cut tax spending to save or have more money to spend for you your loved ones.

Capital Gains and Dividends. The tax rate on qualified capital gains (net-long term gains) and dividends range from 0 – 20%, depending on the individuals income tax bracket.

STRATEGY:  Spikes in income, whether capital gain or other income, may push gains into either the 39.6 percent bracket for short-term gain or the 20% capital gains bracket. Spending the recognition of certain income between 2016 and 2017 may help minimize the total tax paid for the 2016 and 2017 tax years.

State and local sales tax deduction. The PATH Act made permanent the itemized deduction for state and local general sales taxes. That deduction may be taken in lieu of state and local income taxes when itemizing deductions.

STRATEGY: Generally IRS tables based upon federal income levels and a taxpayer’s number of departments are used for this optimal deduction. Taxpayers who wish to claim more than the table amounts must provide adequate substantiation.

Tuition and fees deduction. The PATH Act extended the above-the-line deduction for qualified tuition and related expenses for two years, for expenses paid before January 1, 2017. The maximum amount of the tuition and fees deduction is $4,000 for an individual whose AGI (Adjusted Gross Income) for the tax year does not exceed $65,000 ($130,000 in the case of a joint return), or $2000 for other individuals who’s AGI does not exceed $80,000 ($160,000 in the case of a joint return)

STRATEGY: Payments by year-end 2016 may be particularly critical to taking this deduction. There is some – but not unlimited – flexibility regarding the deductibility of tuition paid before a semester begins. As with the AOTC, the deduction is allowed for expenses paid during a tax year, in connection with an academic term beginning during the year or the first three months of the next year.

Nonbusiness energy property credit. The PATH Act extended the nonrefundable non business energy property credit allowed to individuals, making it available or qualified energy improvements and property placed in service before January 1, 2017.

STRATEGY: Several overall limitations apply. A credit amount for qualified energy efficiency improvements equals 10 percent of the amount paid or incurred during the tax year and 100% of the amount paid or incurred for qualified energy property during the tax year. The maximum credit amount for qualified energy property varies depending on the type of property, further all nonbusiness energy property carries a $500 maximum lifetime credit cap.

Individual Shared Responsibility Payments. For 2016, the individual shared responsibility payment is the greater of 2.5% of house-hold income that is above the tax return filing threshold for the individual’s filing status or the individual’s flat dollar amount, which is $695 per adult and 347.50 per child, limited to a family maximum of $2,085, but capped at the cost of the national average premium for a bronze level health plan available through the Marketplace in 2016.

STRATEGY: Open enrollment for coverage through the Health Insurance Marketplace for 2016 has closed. However, some qualifying life events may make an individual eligible for non-filing season special enrollment.

Medical expense deduction. Taxpayers who itemized deductions (for regular tax purposes) may claim a deduction for qualified reimbursed medical expenses to the extent those expenses exceed 10% of adjusted gross income (AGI), unless the tax payer falls within an age-based exception. Taxpayers (or their spouses) who are aged 65 or older before the close of the tax year, may apply the old 7.5% threshold for tax years but only through 2016.

STRATEGY: Tax payers who are age 65 or older may consider accelerating medical costs into 2016 if they want to itemize deductions since the AGI floor for deductible expense rise from 7.5% to 10% in 2017. For deductions by cash-basis taxpayers in general, including for purposes of the medical expense deduction, a deduction is permitted only in the year in which payment for services rendered is actually made.

 

This Skill is What Determines the Success of Your Business

Just recently, there was an article written by Matt Fore who talked about an important skill that would subsequently determine the success of your business. In his article, he provided an example from his experience about one of his business friends and talked about this important skill that he was lacking, and how it failed to bring him to the path of financial success.

 

The story unfolds to talk about a man named Earl who was a business man and a magician who performed amazingly for audiences such as adults and families. In fact, his talent was so good, that he was comparable to Houdin Thurstonfield, however, given his talents, he could not generate enough viewers to come to his magic show. Although his talents were astonishing and jaw-dropping, he lacked this important skill needed to get a business of his magic show going.

 

Do you know what skill he is lacking?

 

If you guessed Communications, you are certainly correct!

 

The most important skill that determines the life of a business is communication. Many Orange County CPA Firms and Entrepreneurs including Matt Fore will tell you that “An effective marketing campaign should stir a response; it should stir a conversation. It should give a compelling reason for the client to reach out and receive a benefit.” (Fore)  

 

Communication is very important in business because it plays a fundamental role in all the factors of business. The internal part of your business, which is yourself and the partner/employees are crucial because communicating effectively within your business organization will efficiently complete short term goals and possibly long term goals. Additionally, you want to make sure that your external communication is also well trained, for example your consumers. How are they receiving the messages that you send out to them? Compare what you see and what they see in your advertisements, are you both in the same page?

 

Another thing to note too is that communication builds and maintains relationships, communication is very important because you want all your business partners to understand your situation, your goals, and any other factor that your partners may want to know. A CPA firm typically asks for effective communication. In fact, it is practically required that you have effective communication skills, otherwise, your CPA will not be able to get the job done correctly if you don’t!

 

So there you have it, communication. Remember to always have a good mindset and make sure to always answer any questions if needed from your fellow business partners or consumers.

 

***ARTICLE BASED OFF OF MATT FORE OF ENTREPRENEUR.COM***

Small Business Success Story – Chad Mureta (App Empire)

Chad Mureta ran a real estate business when the impossible happened: A devastating car accident has caused to be delivered to the hospital, nearly taking out his arm. His business could not continue without him being physically present, but Mureta’s mounting medical bills meant he had to find an alternative source of income.

After reading a magazine article about mobile apps during his hospitalization, Mureta decided to try his hand at producing mobile applications. At the time, the industry was relatively new, but he felt the growth potential was worth the risk he would say.

“Lying in my hospital bed, I decided to take a Hail Mary shot and get into this industry.” Mureta said. “I needed a new business and decided to jump in with both feet.” Immediately, he started sketching out ideas for his own apps on pieces of paper. Soon after, he found a development company and outsourced all his work to create his first app.

Mureta took out a loan for $1800 to produce his first app. Fingerprint security – Pro. It soon became one of the 50 most popular apps in the App Store, earning him $140,000 in the process. From there, Mureta founded and sold three app companies – Empire Apps, Best Apps, and T3 Apps and now is currently running a blog called App Empire. He has produced 46 apps to date, and authored “App Empire: Make Money, have a Life and Let Technology Work for You”

Mureta advised other entrepreneurs to not be intimidated by their lack of experience in an industry if they see an opportunity. With a thirst for knowledge and the willingness to find and connect with the right people, anyone can begin to carve out an entrepreneurial path for him or herself, he said.

“I’m still not a tech guy,” Mureta said, “I couldn’t tell you how to program an app, but I can tell you how to make it a success. I researched the market and the consumers, and saw opportunities for people like myself. I kept researching and kept expanding my knowledge to grow my business and income.”

 

***ARTICLE BASED ON BUSINESSNEWDAILY.COM, WRITTEN BY NICOLE FALLON TAYLOR***

7 Businesses That You Can Start With Less Than $100

There are always many obstacles to starting your own business, but money is not always one of them.

Many people have dreamed of owning a business, however, the biggest problem that many people face is that the amount of capital it takes to start it up and to also keeping it running in order for the business to keep going for as long as it can. Over the years, people have done many odd jobs to work. It does not matter if you’re a handyman or an Orange County CPA, you can make extra money on the side.

You may think that is crazy, but you will be surprised after reviewing the 7 business ideas that can actually be launched with less than $100.

Start a Tutoring Business

1. There are a lot of students who need assistance in every subject – whether if it is in elementary school or college. If you have this knowledge, then starting your own tutoring business can become an appealing business idea that requires almost no capital. After all, the students already have the learning materials with them.

 

Start a Homemade Gourmet Foods

1. Whether if it is soup mixes, jellies, or chocolates, people love gourmet food products. And, since you already have a kitchen, you just need cooking supplies, packaging, and basic marketing materials to get started.

 

Affiliate Marketing

1. If you have a blog with a fair amount of followers, then you can become an affiliate. Basically, this just means that you plug other people’s products or services. As an affiliate, you get a special link. Whenever a visitor clicks on that link and makes a purchase, you’ll get a commission.

 

Tax Preparation

1. Preparing taxes is another necessity. But, most of us don’t have the time or knowledge to take of this task. If you’re up to date on the latest tax regulations and enjoy crunching numbers, it can be a nice business during tax season.

 

Start a Personal Trainer Business

1. Even though healthy is a priority for most of it, it can be a challenge to not only stay on track, but also make sure that exercising is done correctly so that you don’t injure yourself. You can become a personal trainer and motivate and monitor people when they exercise.

 

Start a business in Importing products

1. You can purchase products from overseas in bulk and start selling them at markup. This is a very effective way to start. Increase your spending as you increase your revenues.

 

Airnb Host

1. If you have an extra room or home, then rent it out on Airnb instead of just sitting there vacant. One example, was that one of the clients who use Airnb, was able to make $3,000 per month last year just renting out a room downstairs. 

 

***ARTICLE BASED ON JOHN RAMPTON’S ENTREPRENEUR.COM*** 

How to Start a Business as a Couple, Aww! <3

We all know that the benefits of starting a business with a loved one seem obvious: You’re working with someone that you trust, and whom you already you enjoy spending time with. There are plenty of high profile success stories- Cisco, Slideshare, and Popsugar were all started by couples-to serve as inspiration for marrying business and love. But even the best partnerships can be strained by the stresses of running a business. Finding dedicated time for a relationship when there are shared work responsibilities to be delegated, staff to be managed, and conflicts to be resolved is no joke. And that’s why when things go wrong, perhaps nobody has it worse than partner who are both in love and in business. The stakes can be so much higher.

Let’s take an example, Heather and Allan Staker used to have date nights. Then the married couple launched a startup together. “Friday date night would turn into eating Indian food in front of our laptops” Heather says. “I was starting to feel overwhelmed – we were always together, but we were always working. I went to see a life coach, who told me, “you’ve got to stay in love with each other, apart from your business.” So they came up with a rule; No computers on date nights. It wasn’t easy, but they stuck to it. And with technology banished, their special dinners became a time to connect and talk as spouses rather than as cofounders.

So how can you start a business as a couple successfully?

–          Start with A Plan

• For many couples, starting a business together feels natural: The idea most likely came out of the relationship. One example is that a couple can start to figure all of the work together and sort them out into tasks for each individual in the relationship. What do we mean by that? Have the husband work a series of tasks while the wife works on another series of tasks. Plan out these tasks together, and then assign them whoever does the tasks.

 

–          Keep It Professional

• Once a couple both go full time together for their business, there would be constant closeness between the two. Although the privacy for the both of them to be intimate with each other is going to be less than before, it is still necessary to stay professional for the sake of the employees and the business. Keeping it professional instead of calling each other “babe” or other silly words would make the work environment more product, you never know, one of your employees may be feeling lonely with their love lives.

 

–          Set Expectations Early

• Before pouring all your coupled energy into a budding business, it’s important to set parameters of where work ends and where life begins. For the Staker’s (Indian Food example), the no laptop rule was a romance life saver and it inspired additional at-home rules. For some others, the marriage becomes all about the work- and that can be ok too. An added benefit of married business partners is not being nagged on the weekend or on vacation to unplug, as spouses often do. A cofounder gets how impossible that is – and they’re right there next to you, clicking through emails. Make plans to do things together other than work to keep the relationships alive while keeping the business running well.

 ***ARTICLE BASED ON ENTREPRENEUR APRIL 2016***