Planning for Tomorrow

When you’re a corporate employee – if you’re lucky – you have a company-matched 401K and maybe even a fully funded pension plan. When you’re self-employed, saving for retirement is all on you. And unless you want to still be working when you’re old and gray, it’s a good idea to start saving sooner rather than later.  Granted, if you have the right type of business, then working past traditional retirement age may be something you choose to do.  But a good retirement plan can mean the difference between working by choice or working from necessity.

The good news is, the government makes it easy – and tax free – to build up your own personal retirement account.

401K or IRA

A 401K is a special type of retirement fund set up and administered through an employer. Some companies offer to match a percentage of every dollar you contribute, making this a nice, pre-tax benefit.

IRAs, or Individual Retirement Accounts, are set up with the help of a bank or financial planner, and are also non-taxable. That means that if you’re paying 30% of your net income to the IRS (not uncommon for self-employed folks) you can save 30 cents on every dollar you contribute to an IRA.

There’s a limit to how much you can invest in a retirement account. For individual 401Ks (available only to self-employed persons with no employees), the maximum you can stash away pre-tax is $17,000. For IRAs, it’s $5,000.

Before you start stashing money away, though, remember that this tax savings does come with a price: You can’t touch the money you invest until you’re 65, or you end up paying not only the income tax, but penalties as well. In addition, you will have to pay income tax on that money when you retire. There’s no escaping the tax man entirely, unfortunately.

A Sound Investment?

There’s another benefit of a retirement savings account: the potential to earn substantial interest rates. Because you have the flexibility to divide your IRA funds up among various investments, you can potentially see returns as high as 10 or 12%. That’s a far cry from the 1% your savings account is offering.

Of course, there’s no guarantee that any investment will earn money. Just talk to anyone who was close to retirement age when the economy took a downturn in the early 2000s. Many people saw their 401ks and IRAs dwindle away to nearly nothing, while they stood helplessly by and watched.

But for saving on your income tax as a small business owner, an IRA or individual 401K is ideal. They’re easy to set up and have few costs involved, plus they give you the freedom to invest your money in high-earning stocks or to choose safer bonds.

We have been building our retirement savings for years.  It is comforting to know that if we should ever want or need to stop working altogether, we will still be able to live quite comfortably.  If you are unsure how to get started planning for your tomorrow, contact a trusted financial advisor for help. 

Choosing Your Business Structure

Chances are, when you started out working online, you didn't put much thought into your actual business setup. You probably just set up a PayPal account, added some “buy” buttons to your website, or maybe created an invoice or two for clients. Before you knew it, though, you were thinking about quitting your job, and suddenly, filing taxes was a huge concern. 

The truth is, many new entrepreneurs are well on their way to having a full-blown business long before they put any thought at all into legal business structures, and that can really mess with your tax bill. In most states (and we’re speaking of the US, here) you have three choices when it comes to business entities:

Sole proprietor. This is where you started when you sent your very first Pay Pal invoice. When your business is structured this way, you are your business, and your business is you. There is no separation of funds, either for tax paying purposes or in the event of a law suit. You file your taxes just as you always have, but you’ll also need to add a Schedule C to record your business profits and losses.

Limited Liability Company. A small step up from a sole proprietor, the limited liability company (or LLC) affords you some degree of protection from debts incurred by your business. However, you still file your income tax return as if you and your business are the same – because as far as the IRS is concerned, you are. LLCs are regulated by the state, and not recognized by the federal government.  This is the structure I chose for my company, Boomer Businesses LLC. 

When you operate as either a sole proprietor or an LLC, you are responsible for paying the entire amount of your taxes. That means that the percentage of Social Security tax your employer used to pay is now your responsibility.
 
Corporation. When you incorporate your business, you are saying that your business is completely separate from you as an individual. So separate, in fact, that you’re actually an employee.

The good news is, corporations don’t file income tax returns, and you won’t receive 1099 forms from your customers. The bad news is, you will be required to pay yourself a salary. That means that every month, you (the corporation) will be required to send withholding tax to the IRS
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This can mean savings for the entrepreneur, because now the corporation has to foot the bill for half your social security tax. But the added burden of dealing with payroll and even more government paperwork means it might not be worth it to you. 
 
The best advice? When your business turns from a hobby – meaning you’re earning more than pocket money – into a real business, it’s time to talk to an attorney or qualified accountant. They’re the ones who can best advise you about the business entity that makes the most sense for you, your financial situation, and your business goals.

Get Caught Reading Books to Grow Your Business

Every May, I celebrate Get Caught Reading Month by sharing some of the best new business books that I have read recently.  And this May is no exception.  There were several books written this year that need to be part of every booming-preneurs reference library.  If they aren't yet part of yours, I have only one question for you.  Why not?

Let's start the list with yet another winner by the ever-amazing Felicia Slattery. #1 on this year's list is "Kill The Elevator Speech."  I know what you're thinking.  You've spent countless hours perfecting your elevator speech.  Isn't that what all the business experts tell you to do?  And now someone is telling you to throw it all away?  Yes!  And when you read Felicia's book, you'll understand why the elevator speed needs to go the way of the dinosaurs.  Because it just isn't made for today's business environment.  Follow Felicia's advice instead and start really connecting with your prospects.

If you follow me on any of the social media sites, then you will often see me exchanging banter with a wild-haired fellow who is often in the company of rather large poodles.  Well don't let the silliness deceive you.  Beneath all that lurks the mind of a business genius.  And he has written book #2 on my list - "Trust Funnel:  Leverage Today's Online Currency to Grab Attention, Drive and Convert Traffic, and Live a Fabulous Wealthy Life" by Brian G. Johnson (aka The Poodle Wrangler).  Every business person has heard that people do business with those they know, like, and trust.  Getting to know someone is relatively simple.  It isn't even hard most of the time to get them to like you.  The tricky part is getting them to trust you.  Brian will show you how to do that and how to create your own "trust funnel". 

Two years ago, I had the opportunity to meet Debra Jason and I was instantly impressed with her knowledge, spirit, and eagerness to share.  So when she published her book, "Millionaire Marketing on a Shoestring Budget: How to Attract a Steady Stream of Happy Clients, Make More Money and Live Your Dream," I knew it would be a winner.  And I was right!  I wish I had this book when I was starting out because it tells you exactly what you need to do to successfully market your business.  The exercises at the end of each chapter will help you put your business on the right track.  All you have to do is follow them.  Does that mean experienced marketers don't need it?  Absolutely not!  Debra can teach you a few things too.

Product launches.  Everybody does them.  But not everybody does them well.  If you are getting ready to launch your new business, or a product or book, then you want it to be successful.  Read Jeff Walker's book, "Launch: An Internet Millionaire's Secret Formula To Sell Almost Anything Online, Build A Business You Love, And Live The Life Of Your Dreams" to learn how to make it more than just successful.  Follow his advice and you'll be off-the-charts, out-of-this-world successful!

What recommended reading list would be complete without a book by Joel Comm?  This year's recommendation is the newly updated "Twitter Power 3.0."  Using Twitter for business is a skill.  And Joel teaches it like only he can.  If your tweets consist mostly of links to your blog posts with the occasional retweet thrown in, you're doing it wrong.  Let Joel show you the right way.  Whether you are a Twitter novice or an old-timer with a large following, there is something in this book for you.

Now - get caught reading!

Not Everyone Will Be Your Fan

According to the Direct Selling Association, 15.1 million people in the U.S. are involved in direct selling. That’s a lot of people in this industry, and new people are joining every day. More consultants means more competition for you. In fact, competitors are everywhere – on different teams, working with different companies, or even on YOUR team. 

Don't sweat it though. Friendly competition can be healthy. Of course, not all competitors are friendly; some will view you as the enemy simply because you’re not in their downline or with the same company.  You may even have some of your own team members or customers who don’t think you’re all that wonderful. So what?

Just accept that you can please some of the people some of the time; but you’ll never please all of the people all of the time. And when it comes right down to it, the only people you really have to please are your customers. If you are running a business of integrity, you just keep doing what you’re doing.  Don’t change who you are or what you are doing simply because someone doesn’t like it. Change if you need to for continuous improvement; otherwise be true to yourself.

Unfortunately, not everyone operates with the same principles. Some people will try to sabotage your business. Some people will call you a liar. Some will try to get into an argument with you on a public forum. Some people may even do something that you could never imagine. So what? Keep on building your business and do not let others determine the fate of your future. Don’t spend too much time worrying what others think or say about you - and never stoop to their level. Remember, those who talk badly about you only make themselves look ugly. By taking the high road, you can keep your integrity intact.

All that said, lest you think network marketing is all cat fights and mud slinging, you will find that most people in this industry are inherently good. Like you, they're simply too busy running their own business to pay much attention to your business. Most are very helpful and supportive, and will freely give advice when asked. When you do run across those naysayers, just walk away. 

You should be aware, though, that the more involved you are in your business, the bigger the target on your back. The best way to deal with competition and those who have made it clear they are not a fan, is to politely ignore them and focus your time and attention on growing your business and delivering exceptional customer service.

As in everything you do - church, school, work, and even family gatherings - you will meet some people who like you and some who don't. Concentrate on building relationships with people with whom you have a connection, and ignore the ones who are just looking for trouble, and you'll have much more success - and a lot less stress - in every area of your life and business.

Should You Sign Up With a Company Because You Absolutely Love the Products?

Whether you’re considering starting a business as a network marketer or if you already have a business but are entertaining switching to a different or additional company, read on.

There are so many options available if you want to be part of the direct selling industry. There is no shortage of product lines and of companies whose primary product line is similar to other companies. You certainly have your choice of which company to represent. In your decision process you should consider the company’s compensation plan, policies and procedures and whether or not the products are consumables – making it likely customers will reorder.

What about particular products?  Should you sign up with a company just because you love the products? While liking the product line can help you be a more enthusiastic sales person, there's a few other things you should consider.

Clearly you should at least like the products. If you don’t have any interest in what you are selling it will show; and could present some real challenges in your business. If you don’t wear jewelry and it’s not something that interests you, how well do you think you could represent a jewelry company? Yet the question remains: do you need to be full-on, passionate about the products? Some will say emphatically, Yes!  Others will disagree that being passionate about the company’s products is a necessity for success.

Let's take a look at an example to help you understand why passion might not be the best indicator of potential business success. 

Company A has a product line that you absolutely love. You want one of everything in the catalog, and have already started amassing quite a collection. After you reviewed their compensation plan you see that earning more than 25% is virtually impossible. It’s a ground floor opportunity, and while customers won’t need any refill on a regular basis, they certainly could come back to give the products as a gift. But the products are to die for - and you just love them!

Company B has some cute, unique products. You’re hardly passionate about the items, but you can think of some target markets that would benefit from the product line. This company pays their consultants almost 50% commission, in addition to extra percentages available. The primary product line is something customers would replace frequently. They’ve been in business for about six years, have a proven track record of growth in both sales and recruits. You read about them in the Direct Selling news and know they’ve won a number of awards. You showed the catalog to a couple of your friends and they like what they see. You just don’t happen to see yourself needing to fill your home with one of everything from the catalog.

Obviously, if you're in business to make money (and aren't we all?) then Company B has a whole lot more going for it than Company A. If all you're looking for is a fun way to earn a little spending money, though, by all means stick with the company whose products you're passionate about. 

Help for Shy Network Marketers

Do you think you're too shy or introverted to be successful in network marketing? Does the thought of approaching strangers to talk up your product line or business opportunity give you a sick feeling in your stomach? Will you avoid asking for referrals simply because it feels too uncomfortable for you? Don't automatically dismiss a profitable network marketing career just because you get a little nervous about making phone calls to strangers - most everyone experiences this kind of fear at one time or another, and just about everyone can overcome it.

First, it’s important to look at the fear of public speaking. It is absolutely the number one most common fear.  Public speaking could mean speaking in front of an audience of 500 people or it could mean speaking one on one to a stranger. Three out of every four individuals suffer from speech anxiety. That's seventy five percent of the population! Given this alarming statistic, shy network marketers are the norm, not the exception - and if they can overcome it, so can you. I should know - I used to be so shy, I would skip school on days I had to give a presentation.

The reality is, most people on your team, including upline and downline have or have had a fear of speaking in front of people. Sure, some make it look so easy and natural.  They are either faking it quite well, have become more comfortable over time, or are in the minority twenty five percent of the population who enjoy public speaking.  Knowing this, there is no reason to feel inferior or intimidated if you fall in the 75%.  Aren’t you feeling better already?

For some consultants, the hardest part of running an MLM business is opening their mouth to talk with strangers. They are comfortable talking with family, friends and those they have had an opportunity to get to know. But potential customers, recruits or new team members scare the pants off them. The more opportunity you have to speak with people you don’t know, the easier it becomes. That said - a good many people simply will never be comfortable with public speaking, no matter how much practice they get.

Honestly, if you are so paralyzed with fear that you can never force yourself to utter some words about your business to strangers, then perhaps MLM is not for you.  You don’t have to be overly chatty, but you do need to introduce your products if you want to sell them.  If you are willing to give it a shot, and you really do want this to work and are willing to step out of your comfort zone, here’s a tip to get you started.

The next time you come in contact with a cashier, receptionist or waitress, take a deep breath, then say to this person, “If you know anyone who likes [candles, jewelry, cooking, etc.], could you please pass this along?” Then hand that person a business card, sample, or catalog.

That’s it.  It’s that simple.  You’ll realize it wasn’t so bad and that you didn’t throw up or pass out. Now try it again, and again, and again. It’ll either get easier and at some point you’ll find yourself engaging in conversations with strangers.  Or, this might be as good as it gets, but you’re still sharing your business with others.
 
Give it a try. You just may find yourself with new customers and recruits as a result.

Never Show Your Desperation

There is a fine line between being assertive and being aggressive, between being proactive and being obnoxious. Okay maybe not such a fine line with being obnoxious – most of us can recognize that behavior.

What some network marketers have a hard time discerning is when their behavior makes them look desperate. Yet the rest of their audience can clearly see the desperation in their words or actions.  Perhaps you may recognize some of these examples:

1. PMing you!  This is most often found on public forums. Some unsuspecting potential recruit will post a question. Instead of merely answering the question, some hot footed desperate consultants promptly respond with “PMing you!”  This stands for I am sending you a private message. Or another way to put it is “I called it first! Don’t anyone else try to recruit this person because I am the first person to announce that I’m PMing her. Mine. Mine. Mine.”

2. Facebook status:  I need a job! Please order some [Your Company] from me.  True story. That is an actual status update that I have seen from more than one network marketing representative.  Ok, if you’re a rep, don’t you already have a job? And if you’re putting out a mercy plea for orders, is that the message you really want to send about the products and company you represent?

3. Can I ask a favor? I only need xyz (sales or recruits) to qualify for a trip I’m trying to earn. Announcing that you are desperate is a sure way to determine why this plea makes one look desperate.

4. Pounce! (1) While attending a craft show, you’re attacked by one of the vendors. There is one cosmetic company that tends to have a reputation of being (ah-hem) as they call it, “assertive”. What this really means is one of the sales ladies will stealthily jump out from behind the table and slap some lotion or potion on your face promptly announcing that this will help with your wrinkles. You don’t even have an opportunity to refuse the assault because it all happens so quickly.

5. Pounce! (2) Not quite as aggressive as the physical product assault, but equally as desperate. While minding your business, perusing the vendor booths, you’re greeted with, “Hi, sign up for our drawing. Do you want to book a party? We’re hiring. Have you considered starting your own business?” This was all spewed within a 10 second time frame, without so much a breath between sentences. Not desperate, are you?

These examples seem almost too bizarre to be true, but you might be surprised. These are bona fide actual examples that have been used more than once by more than one networker. If they seem so obviously desperate, why are some still using these tactics? Do yourself and your business a favor and work on your confidence - you'll get a lot further than by showing off your desperation.