Most health business owners do not give enough consideration to their business model. For many it can send them to an early grave… or at least the death of their hopes and dreams for their business.
1/ Not Sustainable – If your basic business model is flawed then you will not be able to sustain your business for long. You will find yourself working harder and harder while you burn yourself out. A flawed business model has a limited time span.
The funny reality as have been proven time and again is that only those few entrepreneurs with a long term view of Business finally end up accumulating the wealth short term thinkers often focus on more. The very ones who go into business to cash out quickly [fast] end up being the ones disappointed. Why? Because Jed Fernandez Business is just like farming – you reap only what you sow!
The very general rule is that you will be able to recognize a portion of your home expenses as office rent in your business. The first step is to calculate the total costs associated with your home. This should include the mortgage interest, rent, the condo fees, the home insurance, the utilities, property tax and maintenance costs. Once you have these numbers, you calculate the total amount of space used in the house for the business. This amount in then divided by the total space available in the house. The ending result is the percentage of home expenses that can be claimed as office rent. For most of the businesses we deal with, the percentage amount is usually 10 to 15%.
It’s not easy. But it’s the only way. “He said, she said, they think.” All that is nonsense. Don’t waste your time and get the true market value of the business. This will save a lot of time and nerves, and would make it easier to buy or sell.
The next step in the calculation is to identify those expenses that are business expenses and those expenses that are personal expenses. This is similar to our Africa metaphor in that you need to figure out how much of the overall costs for the auto are for business only. This is done be determining the total kilometres driven for business and the total kilometres driven for pleasure. These numbers are then used to determine what percentage of the total automobile costs can be claimed for business.
Being in business and profiting from it is fantastic, and you must be physically healthy to enjoy the fruits of your labor. Evaluating your physical health condition is an absolutely critical issue when you are considering buying a business. Or if you are not healthy enough, is there someone that you like, trust, and capable enough to help you out. Again, you must be sure you have got this base covered just in case. Small business can be extremely fragile object to handle, and you need to do the job the right way.
If you believe in all these positive thoughts, your belief will turn into action and behavior. Your investors will feel your confidence and will feel assured in your ability to lead the business well. They will be convinced of the potential of the business.