I love tax day. No, I’m not crazy. Every April 15th, I’m reminded of the benefits of being an entrepreneur. If you’ve been dreaming of being your own boss but you’re nervous about letting go of that regular paycheck, I’d like to offer you a challenge today. Sit down with a pencil and paper and add up how much
you spend on travel, cell phone bills, internet, computer, i-pad, business books and hobby publications. Now imagine that interest or hobby becomes your business and that your spare bedroom or seldom-used guest room is your office. A portion of the utilities and rent or mortgage for that space are business expenses.
That’s adds up to a lot of money over a period of a year, doesn’t it? I’m not an accountant and tax laws do vary in different countries but most of those expenses are tax deductible. What does that mean for you as someone who’s on the fence about leaving your job to do your own thing?
It means you have to earn that much more than your present salary as an employee to pay all those expenses that your business covers. As an entrepreneur, you get to deduct many expenses that you would incur anyway but if you are an employee, your boss takes the deduction.
What does it cost you in gas, wear on your vehicle and parking or public transportation to get to your job each day? If your business took you to a meeting you’d deduct those costs.
What about the time you put in? You boss doesn’t pay you for commute time does she? If you were self employed, that hour or two you spend getting to and from work would be spent earning.
Do the math. Take all these factors into consideration when figuring out what you really need to earn in your own business to replace your job. You may be surprised.Lets Connect