Skip to main content

Things That Will Make You Money - Number 4 - Be Prepared

Successful people do things others will not do. One of the things others don't do is preparing to succeed.  You have probably heard the expression "failing to prepare is preparing to fail".  Yes, it takes work, planning and preparation followed by action to succeed. You may be brilliant and you may have a brilliant idea and capital but if you do not properly prepare you are bound to fail.  

When Starting a business to be prepared you need enough capital, resources, and experience.  It is OK to start a business in an industry in which you personally have no experience but it is best to hire someone that does and thoroughly discuss the plan with them.  They should help you modify the plan based on their knowledge of how things really work. 

An alternative to hiring someone with experience in that industry is to get the experience yourself. To do that requires time and effort on your part. This is where the line between success and failure is drawn.  It is like the two airline pilots that bought a bar but their own experience with bars was limited to drinking in one. They were bound to fail before they even began. Why did the previous owners of the bar fail?  What will make your plan succeed?  I know you want to save a buck and do things the easy way but that is not a recipe for success.

Wouldn't it be a good idea to know about the cost structure of a business, to have a marketing plan in place, and to know about the details of the day to day operations in addition to having sufficient capital and enthusiasm for the idea?  Although your personality, excitement and cash will help you succeed, preparation is also an important key. 

Do this, ask yourself if you were being asked to invest it this business, and you took the emotion out of the equation, would you be interested?  What reasons do you have for believing it will succeed?  Having experience or someone with experience who can clearly explain how things work and how the plan will work is a huge factor for achieving success.

The CPA Superhero wants you to succeed. If you want the CPA Superhero to help you feel free to contact me using my information below. New potential clients can have a free half hour initial consultation.  Tax planning for your retirement involves a consultation fee.

Jeff Haywood, CPA
The CPA Superhero

Follow the CPA Superhero on Twitter too at:

These posts contain general information that does not fit every situation, they are not all inclusive, and as always for your tax situation everything "depends on facts and circumstances."  In addition, the world and IRS requirements are always subject to change.  So call me to talk about your specific facts and circumstances and what you want to accomplish.

Popular posts from this blog

The Dreaded IRS Audit...The Reality

Updated May 31, 2018

There is a fear of an IRS audit.  People have heard all kinds of stories and have many ideas about what will cause an audit and how to avoid it.  For example some fear that taking a deduction that they are entitled to will make them the target of an IRS audit.  I have also heard clients say both that filing on time will prevent an audit and also that filing an extension will avoid an audit.  So what is the reality of IRS audits.  

Who gets audited and why
The IRS audits aroud 1% of tax returns they receive.  That sounds like random selection but there are things that increase your chances of selection.  Ordinary taxpayers with ordinary income and deductions if audited are usually just a random and very unlikely selection.  In fact none of my cleints that can be described this way have ever been randomly selected for an audit.  Most audits are triggered by the unusual or areas of suspect by the IRS.  The IRS itself indicates there are randomly selected audits but m…

Who Is Watching Your Business? Someone Is. Hopefully It Is You.

Who Is Watching Your Business A few employees from the office went out together for dinner and a movie. It was interesting when the charges at a local restaurant and movie theater showed up on the next business credit card bill. It was reported to me as suspicious and I took it to the owner. Upon investigation it looked like the employees from the office had charged their night out on a company credit card. But how did they do that? Had the owner given them permission? No, he had not. It was discovered that one of the accountants had, without authorization, requested an additional credit card which she used for personal expenses.

Later, at tax time, a local tax-preparer called to ask about an employee's W-2. I could not give information about an employees salary but the preparer found two things interesting. One, some one from the firm I worked for would come to him to have their taxes done rather than have them done in house. Second, the salary and of course the taxes withheld s…

Year End Tax Moves to Reduce Business Profits

Here are some tax planning strategies to help you reduce profits for the year and thus reduce the taxes you will pay you. (Keep in mind if you want to accelerate profit into this year do the opposite of the strategies listed below)

Delay Revenue If your business is an accrual basis tax reporting business delay sending out invoices until next year. For a cash basis tax reporting business delay receipt of income. You may need to call people you have already invoiced to request that they make sure you don't receive their payment before the year end. In reality they can send you a payment before year end and you could receive it after year end so this could benefit both you and your clients/customers.

Accelerate Expenses On the Expense side for an accrual basis tax reporting business make sure you enter all the bills you receive before year-end and make sure they are dated this year. For a cash basis tax reporting business pay as many bills by year-end as possible. If cash is tight m…