New 2021 Entrepreneurship Tips And Tricks
Introduction Of New 2021 Entrepreneurship Tips And Tricks
New 2021 Entrepreneurship Tips And Tricks. Overall entrepreneurship is amazing and my goal is to convince you to eventually quit your 9-5 job and be your boss thank you to Canada for sponsoring this video let’s get started so I just want to give you guys a little background about myself I’m a 29-year-old solo entrepreneur with a small group of contractors that work for me I do youtube online education real estate and e-commerce among other things these pros and cons don’t always apply to all entrepreneurs but for most people that work for themselves or have a small team, this should apply.
The first pro of entrepreneurship is that you get to set your schedule you get to wake up
So the first pro of entrepreneurship is that you get to set your schedule you get to wake up whenever you want you to get to hit the gym whenever you want you to get to start work whenever you want and of course, you get to stop working whenever you want in my opinion being the CEO of your time is the absolute best part about entrepreneurship and we’ll talk about this later on but if you delegate if you know how to create a team of people then that can free up your schedule and give you the freedom to do all the things that you want to do in life.
So at some point, you’re able to get people to do work for you which means that the money you’re bringing and is sort of passive I’ve had my schedule since graduating college in 2014, and let me tell you guys just being able to do that has been such a big blessing once you get to have your schedule it’s impossible to go back now one really big con of having your schedule is a lot of the times you think to yourself do I need to work today there could be a big lack of accountability since you don’t have a boss that’s always looking over your shoulder and as a result, you need to be focused and committed to making yourself work now.
I get it it’s very hard to make yourself work because the self-discipline that’s required is extremely hard to get I’ve struggled a lot with this being my boss for so many years and sometimes I’ll get into a slump not work productively for quite some time and then just really kick myself for being so unproductive like guys sometimes I’ll watch youtube videos for an entire afternoon see that’s something you need to consider when starting your journey of entrepreneurship are you going to have the accountability to get things done because if not this could be a big struggle but don’t worry I do think it’s something.
That everyone can learn how to do build that strong work habit builds that accountability in yourself
That everyone can learn how to do build that strong work habit builds that accountability in yourself and as you do that entrepreneurship is going to get easier and easier now we’ll say some days you might not work that much but some other days you might be putting in 15 plus hours or more in a single day just know that since you don’t have a set schedule that schedule can be light or it could be extremely heavy the next really big pro about entrepreneurship is all the tax advantages.
When you’re in business for yourself this allows you to take business write-offs so anything you’re doing to spend money on your business you can write this off of your taxable income and it’s something that a lot of employees w-2 workers are not going to have the option of doing so we’re talking cars we’re talking office space supplies business meals travel and a lot of other things and the cool thing is you don’t need to have a gigantic business to take right off literally any side hustle income you make on 1099 is going to make you eligible to start taking these types of deductions so yes taxes can be quite high for a lot of us.
But the government the IRS they allow us to reduce our taxable income through all these deductions that we can take and literally all these options are not available to employees so that’s why it’s so beneficial to be your boss to create your own business and start making 1099 income they always say the tax code is extremely complicated and it’s extremely unfair to employees but if you have your own business that’s when you can really take advantage of the tax code and reduce your taxable income which I’m sure a lot of you guys would love to do now there are definitely a lot of tax advantages to being your boss but there are some parts of having your own business.
When they look at their tax bill after switching from a w-2 employee to self-employed income
That is not good for taxes a lot of newly self-employed people are somewhat surprised when they look at their tax bill after switching from a w-2 employee to self-employed income and the reason why is because you’re carrying the full burden of paying your social security and medicare taxes if you’re an employee of a business your employer is paying half of that for you so yeah it’s no longer being split by you and your employer and that’s why it seems like you’re going to be paying a higher tax bill now for self-employed people you will be paying 12.4 for social security and for the year 2021 this applies to the first 142 thousand eight hundred dollars.
You’re making the tax for medicare is 2.9 percent and this amount applies to all the earnings you make not just the first 140 2 and 800 and there is an extra 0.9 percent on top of that when you makeover 200 000 a year as a single filer or 250 000 jointly so yeah you can see why paying that 15.3 by yourself is going to be pretty rough at first but there are a lot of strategies to mitigate that cost and I’m not going to get into them too much in this video but you can create an s corporation which will allow you to pay yourself a w-2 salary and then take the rest of the profits as a distribution and those distributions are not subject to this 15.3 tax.
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I bought them for 33 cents each and sold them for 50 cents which mean I had about a 17 cent per sale profit margin
When I was in middle school my dad and I would go to Costco to buy candy bars and I’d take those candy bars put them in my locker at school and start selling them to friends I bought them for 33 cents each and sold them for 50 cents which mean I had about a 17 cent per sale profit margin if I would have been smart with my time I would have scaled by hiring other friends to sell candy for me I only had a limited amount of time to sell candy myself and if I had other people selling candy for me all the time then I’d be making money even if I was just sitting in my chair doing nothing so when you take advantage of things like this.
You are not restrained to making x dollars per hour the more you scale the more money you’re able to make now if you’re an entrepreneur there is a con with your income and that is being unstable so when you’re an entrepreneur you are not necessarily always making money you could be losing the money you could be making money but it depends and for a lot of people they do not like this instability most new entrepreneurs I know are probably going to be thinking when is my next paycheck and how much is it going to be when you’re not making money based on the number of hours you work then it’s a different mind shift and it forces you to hustle for your money.
Until just last year I did not have a stable income I never knew when or where my next paycheck was coming and yeah I get that is extremely tough some months would be great and some months would be extremely bad and I will say that for most new entrepreneurs you might make less money than your friends who are employees for the first few years that was my case I was not earning that much money once I graduated college but at some point, your income is likely to surpass theirs and it’s just gonna keep going up exponentially so yeah don’t be too worried about how much money you make when you first start as an entrepreneur rather.
The whole entrepreneurship game and at some point you’re gonna hit a home run with one of your businesses
Start building those high-value skills learn the whole entrepreneurship game and at some point you’re gonna hit a home run with one of your businesses okay so another pro of entrepreneurship is that you get to build something that you are extremely passionate about in what I always tell people is that you should turn your passions and hobbies and interests into your business when you do that working becomes not hard it becomes more fun and you have this intrinsic drive to succeed you can think of.
It is working on your dream and not your boss’s dream two great examples of entrepreneurs that followed their dreams and succeeded is the Strad man on youtube and tony shea who’s the founder of Zappos the strat man was so passionate about cars he lived in his car for months while building his youtube channel here in Los Angeles tony shea had a huge passion for customer service not necessarily shoes but he was able to take that concept and turn it into one of the biggest shoe retailers in the world.