The True Cost of Self-employment

Written by Kenny Herbold

By Kenny Herbold

Do you think you are ready to make that leap to full self-employment? The profit from your part-time (up till now :-) business is matching or exceeding your regular paycheck, so you think it’s time to fire your boss and make do without that paycheck. Before you take that final step to personal freedom, make sure you truly understand what you are giving up. Your employer paid benefits may cost you more than you realize. For many people it will take more than $40,000 of profit per year to replace a $40,000 annual salary.

When I talk about your employer paid benefits I’m not referring torepparttar “free” office supplies, subsidized soft drinks, or evenrepparttar 116827 occasional free meal atrepparttar 116828 holiday party. The items that you need to consider arerepparttar 116829 benefits that are going to cost yourepparttar 116830 most money. Although if you really like soda I guess you might want to include this too! According to a survey published byrepparttar 116831 US Chamber of Commerce in January 2004, employer paid benefits averaged 42% of an employees salary in 2002. That means you need an additional 35 – 45% more than your current salary to make up for these lost benefits.

If this number shocks you, then let’s take a look at some ofrepparttar 116832 typical benefits employers provide. Again, based onrepparttar 116833 US Chamber of Commerce's survey medical insurance cost approximately 15% of an employee's salary. However, employers also coverrepparttar 116834 cost of many other forms of insurance. They include

# Disability, # Dental, # Vision, # Life, # Unemployment, # Long Term Care Insurance, and # Workers Compensation

You might be thinking that you pay premiums for these products already. Even if you do, your employer is most likely payingrepparttar 116835 lion’s share ofrepparttar 116836 cost. Not to mention that many timesrepparttar 116837 premiums you are paying are using pre-tax dollars. This means you end up paying less in taxes becauserepparttar 116838 amount of your premium is deducted prior to calculating your taxable income.

When you own a home-based not only are are you going to be responsible forrepparttar 116839 full cost of all forms of insurance using after-tax dollars, you are going to be responsible for self-employment taxes. Self-employment taxes includerepparttar 116840 employer paid portion of Social Security and Medicare taxes. This means your bill for these taxes are going to double. Instead of paying 7.65% of your income for these, you will now pay 15.30%. And don’t forget about having to pay estimated taxes. You will have to file and pay taxes 4 times a year now, instead of just once. Not only do your taxes increase so dorepparttar 116841 headaches andrepparttar 116842 cost of filing!

Are You a Small Business Casualty?

Written by Val Burnet

When a person knows and knows not that he knows. Teach him.

When a person knows and knows that he knows. Follow him.

I have read a lot about Network Marketing and MLM and I have learnt a few things which you might like to know. Andrepparttar one thing that I know for sure is that network marketing sells.

If you have been in business and your business has turned you into a small tipper, we all know why. The cash flows only in one direction...OUT.

For those for whomrepparttar 116826 cash flows IN,repparttar 116827 secret is that they never stop trying, learning and marketing.

“The majority of men meet with failure because of their lack of persistence in creating new plans to takerepparttar 116828 place of those which fail." Napoleon Hill

Internet marketing is a very vast arena. You could sell any concept usingrepparttar 116829 most effective method, Network marketing.

What is Network marketing?

Celine lives in an apartment complex and Tim is looking for a house on lease. Celine recommends her complex to her friend and earns a referral bonus. Tim has a girlfriend, who is also looking for a place. He makes $400 too. The apartment complex is being marketed simply through word-of-mouth. This is network marketing.

Now you know that selling is possible. Butrepparttar 116830 hamleton question is to sell or not to sell? And if you sell, then what do you sell? I could give you some good tips on selling.

· Sell something which nobody else sells. · Sell something in a way which nobody else has thought of. · Sell something which you are convinced will sell. · Sell something.

Let us now come torepparttar 116831 riddle ofrepparttar 116832 day! How to make a sale? Here again I have some knowledge to share with you. To make a successful sale, learnrepparttar 116833 six C’s – Crystallization, Confidence, Commitment, Consistency, Clarity, and last but notrepparttar 116834 least, Customer.

Crystallization – Set a small goal. Make a plan to achieve it. Work real hard and implement your plan. That is crystallization. A customer will never walk through your door….unless you are a Burger King or Dunkin Donuts.

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