Are You In Business – Part 2 of Many
Sufficient Business Activity
The second test that the IRS (and you should too) will put you through is , do you have sufficient business activity to make a profit?
I Get worried when I am coaching someone and they say they are going to sponsor 20 people next month, when the fact is that they haven’t sponsored anybody in the last 6 months.
This indicates that they are not working their business on a consistent and persistent manner. You see, most people in direct sales and mlm charge hard for a day or two, then take a week or two off. Life gets in the way. Kids get sick. Boss wants you to work overtime.
People focus on the result rather than the behaviour to get the result. It’s like standing at a fire pit saying make fire without going to gather wood.
The IRS is concerned with consistent activity like a “conventional” business has. Showing up everyday. Because most networkers do it part time, this means planning is necessary to chunk things down into small daily activities.
The evidence you require for the IRS is your date book. (Or diary for my Australian counterparts). Activities should be logged daily as to what you have planned and what you have done. Of course, these activities should also be a part of your business plan.
Daily activities can include, but are not limited to:
calling one person a day
making 2 new contacts every day
sending 2 email invites to your next workshop
and so on!
You will, once again, be very surprised how your business will grow if you work it on a daily basis PLUS , you will be compliant with the IRS!
If you would like to have all of these great tips PLUS the keys to saving thousands of dollars on your taxes every year CLICK HERE