Most of our lives we have been convinced that the way to financial security is the common path of education
and subsequent employment. Get a solid career, a steady job with a good company, and it will all pan out. You'll get the
money you need to stay out of debt, support a family, buy a house, and get that retirement you deserve. Right? Not anymore. That model of financial success
no longer applies in the information age.
It may be time for you to rethink the way you are pursuing financial
stability and freedom. In order to really change your mindset and visualize a new future path, a complete shift in perspective
is in order. This shift is perspective is known as a "paradigm shift."
A paradigm shift is defined as
a point in time when a well-known structure and condition of knowledge is suddenly altered at the deepest level; so deep that
our beliefs and actions are changed inalterably from that point forward. Once you consider the possibility of becoming a business owner, and what that could mean for your future, there is no avoiding a paradigm shift in your life.
As an employee,
there is always a ceiling over your head and someone else standing there above you. It is the never-ending parable of the
rat race, or even worse, the hamster in its wheel. Ever feel like you're going nowhere fast? You can run all day and night
for the prize, but the carrot will still be dangling there when you run out of steam.
Nearly half of all employees
in this country report feelings of stress and burnout at their jobs. Every day they question the value of what they do. Worse
still, they begin to feel hollow and tired, and really loathe the idea of walking in the door every morning. Many have developed
stress-related illnesses or sustained work-related injuries. If you are feeling the burnout yourself, take some time to think about changing your mindset, and making a positive move
for your personal health and financial well-being.
The first step to changing your mindset to become a business
owner is to allow yourself to see this change as a real possibility, and dispel the notion that you are not capable. You don't
have to open a storefront on Main Street these days to have a business of your own. Opportunities to make money on the world wide web through an online business or internet marketing are boundless as we move towards a more internet-based
economy.
Take some time to consider what you have been trained to believe by the systems set forth in society.
See how firmly certain assumptions are lodged in your mind without a second thought? To really prepare yourself and visualize
moving from the monotonous sphere of employment to the vibrant world of business owner, the false notions must be dislodged.
Move your mind from "just the way it is" to "just imagine." How can you do this? There are many outstanding
leaders, entrepreneurs, and teachers out there who will give you the 411. Look around, do your due diligence, then begin to
study and learn what they have to offer.
As long as we believe that slaving away in unrewarding jobs is the way
to finally become financially stable and free, we prevent the liberation of this paradigm shift to take place. To start a
business and become a successful entrepreneur, begin by moving your mindset away from the drone mentality of the rat-race
world. Begin thinking like a successful business owner! It requires taking a risk, but the risks of a bleak future are more
certain if you do nothing. You will be surprised at your personal growth and change as you step out into the unknown (to you)
world of entrepreneurship.
Choosing the right legal structure for your company is one of the most important decisions you will have
to make when starting a business. Why is this decision so critical? The business structure that you choose will affect how much you pay in taxes, the amount
of paperwork your business is required to file, the personal liability you could face and your company’s ability to
get funding. To help you make the right choice, we’ve put together a primer on the available options.
Types
of Business Structures: Here's a quick look at the differences between the most common types of business entities:
o Sole proprietorship – This is the most popular form of business organization and as the name suggests, it
is a one-person ownership. It is only natural that of all the types, this is the simplest to set up and maintain. However,
you will still have to comply with local registration rules, apply for a business license or permit, and follow certain laws
to make your business legitimate. In this type of structure, you are personally responsible for paying income taxes and you
are also liable for all business debts.
o Partnership – This is a business entity involving two or more people, called partners, who agree to share
the responsibilities of running the business. Partners not only share profits but also any liabilities that are accumulated,
regardless of who was originally responsible for generating the debt.
o Corporation – This business structure
is recognized as a separate legal entity. A corporation has its own rights, privileges and liabilities separate from those
of the individuals who own or manage it. The key benefit of corporate status is that promoters are not faced with personal
liability. The corporation itself is responsible for paying its taxes and can be held legally liable for its actions. The
main disadvantage is that it costs quite a lot to form a corporation, and entails extensive record-keeping and double taxation. Within the corporation structure, there are two options –
the traditional C corporation and the S corporation. The former is subject to double taxation but has greater tax planning
flexibility and can shield stockholders from direct tax liability. The S corporation has only one level of taxation but is
subject to certain limitations, such as the number and type of stockholders it can have.
o Limited Liability Company (LLC) – This is a type of business ownership that combines several features of corporation and partnership structures.
The advantages of this business format are that profits and losses can be passed through to owners without taxation of the
business itself and owners are also shielded from personal liability.
Choosing a business structure can seem very
complicated but is no so in reality. You just need to understand all the implications before making your choice. Also remember
that your business does not have to stay with a particular structure forever – you can always change it as the company
evolves.
