What to Consider Prior to Settling on a Business Opportunity

The internet is filled with a plethora of business opportunities to choose from as an entrepreneur. While it is nice to have options, it can become stressful deciding on the right business opportunity for you. Because of this, there are a few things you will want to consider prior to making any rash decisions.

The first thing you want to think about is what you have a passion for. What interests you and really gets you excited? The great thing about the internet is you can start a business doing just about anything. Therefore, start a business that you have an interest in. It will be much easier to have success with something you do not consider as work but more of a hobby.

While it is not completely necessary, it is beneficial to go after a business that you have some knowledge in. You are never going to know everything that there is to know within your niche, but you want to be as close to an expert as possible. If you get into a field you already have some knowledge in, this will cut back on the amount of research you must do.

The next thing to consider is what type of business and product you want to promote. It is extremely risky starting a business by promoting a new product. However, the internet is all about taking risks and stepping out of your comfort zone. The better option is to take a product that has already been invented and altering it slightly. This way you have an original product that you can promote.

As mentioned above, there is an interest in just about anything you can think of on the internet. However, you do not want to start a business and find out that no one cares about what you have to offer. While it is important you get into something you have an interest in, it is even more important that your business has public appeal. Take the time to research and make sure people will be interested in what you have to offer.

The last thing to consider prior to starting a business opportunity is whether you want to work part-time or full-time. If you are going to work full-time, you have to be dedicated and actually work full-time. It can be tough with an endless amount of freedom to work with, but you have to be willing to invest at least eight hours a day towards your business.

There is a lot to take into consideration prior to settling on a business opportunity. If you take the time to write down your goals and do the necessary research, you will find the perfect opportunity for yourself.

IRS Tax Issues – The Lowdown on IRS Small Business Employment ID Numbers

We meet again. Small Business and the IRS always clash. You have small, middle class Americans in the right corner, and the biggest collection agency there is in the left corner. Who do you think has the clear size advantage? The only way to get ahead is to arm yourself with knowledge and make sure you don’t make a small mistake.

Employment ID Numbers: The IRS uses Employment ID numbers to identify a small business. With few exceptions, all businesses need one.

The Checklist: Here’s a quick checklist the IRS provides to help you determine if your business needs an Employment ID number.

  1. Do You Have Employees?
  2. Do you operate the business as either a partnership or a corporation?
  3. Do you file Excise, Employment, Alcohol, Tobacco, or Firearm taxes?
  4. Do you withhold taxes on income, other than wages, paid to a non-resident alien?
  5. Are you involved with any of the following types of organizations:

·          Estates

·          Real estate mortgage investment conduits

·          Non-profit organizations

·          Farmers’ cooperatives

·          Plan administrators

If anything above applies to you, apply for an Employment ID Number.

A New EIN: If the ownership or structure of your business has changed, you have to apply for a new Employment Identification Number. This doesn’t apply to small changes like changing your company’s location or name. It also doesn’t apply if you open another business in addition to the one you have. But if you incorporate, inherit the business, or take on a partner, you need to get a new EIN.

Getting it Done: Applying for an EIN requires you to fill out form SS-4 “Application for Employer Identification Number.” The IRS also offers services for applying for an EIN on their official website. Applying for an EIN will prevent you from getting into IRS trouble in the long run, so make sure you get to it! 

Now You Have The Smoking Gun…Use it!

Macroeconomics – Understand the GDP, Business Cycle and Equilibrium

Since we have discussed the consumer price index, inflation and unemployment in the last article, in this article we will discuss the economic growth, the business cycle and macroeconomics equilibrium in one nation economy.

1. GDP

This measures all income and output through a series of national accounts. At the end of their fiscal year, all cash flow in and out is added up to determine the GDP. Real GDP is the adjustment for the distortion caused by inflation by measuring the fiscal output of goods and services in a given year against the prices of a base year while nominal GDP measures output using current year prices.

2.The business cycle

A country economy moves in a familiar pattern of four cycles
a) contraction:slow down in growth or recession.
b) trough: bottom end of the cycle
c) expansion: growth increases or recovery of the economy.
d) peak: top end of the cycle.

The normal business cycle experiences continuous fluctuations with one cycle leading – no matter how prolonged – to the next and the recession is defined as 2 consecutive quarters of declining growth in real GDP.

When the economy expands: unemployment decreases,inflation begins to increase and the real GDP rises.

On the other hand, when the economy contracts: unemployment increases, inflation decreases and the real GDP falls.

3. Macroeconomics Equilibrium

Instead of targeting any one price or supply as in microeconomics the economist apply the measurements against the price level and output for the entire economy. This is accomplished by adding up all the totals for the entire period.

a) Aggregate demand curve (AD)

The AD measures the relationship between the total amount of all output that consumers are willing to purchase and the price level of that output. AD is the sum of what consumers, governments, business and foreigners, through exports and imports spent in the nation economy.

b) Aggregate supply curve (AC)

AC correlates the relationship between the total amount of final goods and services all producers plan to supply at a given price level.

The two curves are used to predict changes in the real GDP and price levels and the curves reflect what occurs in macroeconomics measurement curves.Where this two curves cross over shows macroeconomics equilibrium.

I hope this information will help you to understand more about macroeconomics, if you need more information of the above subject, please visit my home page at: