What You Don’t Know May Hurt You
When I ask that question in my seminars, all the hands go up in the room. If the answer to my next question is a “no”, they have to put their hands down.
“Do you have a business plan?” – I lose 97% consistently. The other 3% are faking it.
What does this mean? Well, if you are in front of the IRS, it means game over. You are not in business. This is just one of many hurdles you must jump over to be able to say you are IN business, and therefore, able to deduct business expenses.
Now, this is not the world according to me, but actual audit evidence from the IRS.
The importance of a written business plan is two fold:
1.) So you are compliant with the IRS
2.) So you can have a great business (it is found that over 90% of the businesses that fail had no plan)
Your business plan should answer the 5 W’s & 1 H : Who, What, When, Where, Why, and How.
It will also include financial projections & marketing plans.
It need not be elaborate, just complete. Don’t just write it and shelve it. Keep it updated periodically. At least 4 times a year.
You will be surprised how your business will grow!
All information & templates for a business plan designed for home based businesses, mlm, & direct sales are included in my Tax Reduction Package. CLICK HERE