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Posts Tagged Business Owner

Tax the Wealthy

Sep 17

Posted by Wayne Woodworth in Network Marketing | 2 Comments

I received an automated survey phone call to my cellphone a few days ago from a local Congressman seeking opinions on the issues they are attempting to address in Washington DC. The two main topics asked about were health care and taxation. I don’t think the government knows the first thing about real health care and I cover that issue on my wellness blog. Here I want to talk about the taxation thing. Specifically, the question was if they should increase taxes on the wealthy.

Poor and middle class people are usually in favor of increasing taxes on the wealthy because it suggests that their taxes won’t be increased. It is a given that the Federal government will have to get more revenue from somewhere if they are going to reduce the huge deficit they are creating.

You realize that the deficit isn’t the entire debt, it is just the amount of debt that they are adding this year.

I want to look at this from the point of view of a wealthy business owner, because I intend to be one soon. I think the government’s definition of wealthy is income greater than $200,000 or so. The bottom line is that wealthy people aren’t overly concerned with their taxes increasing. Taxing the wealthy is really just PR to get buy-in from the masses.

If you are a wealthy business owner most of your expenses are covered by your business. Your car and most of it’s expenses are covered by the business. Most of your travel expenses are covered because you find some way to make it business related. If you eat out, you invite a customer or partner and make it a business meeting. The only personal expenses that you should have are your mortgage, groceries, some clothing, and not much more. Businesses pay for expenses before they pay for taxes, so expenses are effectively tax deductible.

Since you have very few personal expenses, there isn’t much use is paying yourself a large income. If your personal taxes go up, you adjust your income so that you can maintain your level of available cash.

The business deals with it’s taxes differently too. Taxes are dealt with like any other expense. They are forecasted. If taxes are going to go up, then the business figures out how to minimize the expense and then make sure that there is enough income to cover it.

That’s a whole lot better than being on a W2, isn’t it? If you have a job and your taxes increase, you can’t easily go make more money to cover it.

How would you like to own a business of your own so that you can take advantage of the tax laws and legally make some of your expenses tax deductible?  You could start a business today in network marketing if you wanted to. Take a look at my website to see some of the benefits of starting a business in network marketing with Nikken. You can go straight to my Nikken site to see the specifics of Nikken and start your business. Also feel free to leave a comment or contact me.

Wayne Woodworth
Soon to be wealthy network marketer

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Is Network Marketing a Viable Business?

Aug 27

Posted by Wayne Woodworth in Network Marketing | No Comments

Is network marketing a viable business to build and live off of?  Of course it is and many people do.

I have made it very clear to my friends and family that I will quit my full-time corporate job at the end of October to go full-time with my network marketing business with Nikken. It turns out that they didn’t believe me and now that it gets closer they are starting to question me on it.

My father attacked my plans pretty aggressively calling network marketing a pyramid. I was surprised by this coming from him since I have been talking about my plans for a few months already. So, I had to answer the pyramid question again. First of all, Nikken doesn’t qualify legally as a pyramid because I don’t make a penny to recruit people. I only make money when product is sold. As far as the actual structure is concerned, a corporation like he works for and I currently work for is more of a pyramid than network marketing.  In the corporate world I cannot advance up the ladder unless there is an opening available.  In network marketing my rank advances solely on my efforts and doesn’t depend on openings above me. In another perspective, I am a business owner and therefore already at the very top of my company and Nikken is just my supplier.

A friend also called my plans into question. Again, I have been talking about this for a few months and for some reason he responded like this was brand new news. This friend started talking about the security of having a job and having good benefits.  As everyone knows, a job no longer equals security. Companies have been cutting benefits regularly over the past few years to deal with rising health care costs and recently cutting people to deal with the economy. This has been a boon for network marketing recruiters because some of these people who have lost their job are now joining network marketing companies in the hopes of never having to go through unemployment again. There is much more security in having your own business and taking control of your own financial future. He did get one thing right though. A job is very low risk and with low risk you can expect low returns.

I have learned that if you have plans to outgrow your current position then you either need to keep them to yourself or only share them with people who you know will support and encourage you. Another good idea is to increase the amount of time you spend with people who are already where you want to go. With that in mind, I bought plane tickets and made hotel reservations to spend another three days with Loral Langemeier and her team in Chicago for the next Cash Machine Workshop. If you have aspirations to take control of your own future then I would love to see you there. I will be one of the guys wearing a black “staff” shirt. I paid for the first Cash Machine Workshop I went to and it was worth every penny.

Wayne Woodworth
Don’t let other people’s expectations for you hold you back.

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Why People Fail in Network Marketing

Aug 24

Posted by Wayne Woodworth in Network Marketing | 1 Comment

Many people have tried to build a network marketing business and failed. When they do, they write off network marketing and say that it doesn’t work.

If that’s the case, then why do some people become very successful and wealthy?

I think that the biggest reason is that people treat it more like a hobby than as a business.  In a lot of cases people will get all caught up in the hype of a hotel meeting and join without really understanding what it is that they got themselves into.

So, how can you be successful in network marketing? Treat it like a real business. Create a corporate structure around the business and give your new company a name. This will give you the tax breaks that businesses get and give you more credibility when you talk to people about your product.

The next thing that you need to is create a simple business plan and revenue model. This may seem like a lot of work but it really isn’t, and it is essential to keep you on track. How much money do you need to make?  How much product do you need to sell to reach that goal?  Your business plan and revenue model help you figure that out. If you don’t know how to do this, then get Loral Langemeier‘s book, The Millionaire Maker’s Guide to Creating a Cash Machine for Life or her audio program, Building, Leading, and Protecting Your Business.  They will help you get started.

Now you are in a position to go out and learn to properly market your product and business opportunity. You also have a new language that you can use when you approach new people that you want to join you in your business. Instead of depending on hype, people will join you because you have a sound plan for growing you business.  Your new partners will be more likely to stay with you instead of dropping out because the hype wore off or running to the newest thing to come along.

Wayne Woodworth
Network Marketing Business Owner

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