August 9, 2017
Hands on Investing

Is it Time to Sell? Business Readiness

Selling your business is a major step many business owners take when they are ready to retire. When the question, “Are you ready to sell your business?” comes up though it can send a business owner into panic mode. The truth is no one really knows if they are ready in that sense. What am I getting at? Well most of the time, people assume being ready is making the decision to sell your business. In reality, being ready to sell isn’t the readiness of whether you want to sell it; readiness is a state of fact. In other words, do the facts and figures indicate you are ready to sell your business? It is not a state of mind. It’s important to drive this point home so that you truly understand how to answer the question when you hear it. When dealing with readiness, there are two ways to look at it. The first one deals with the owner. Are they personally ready? (Remember we are not talking about a mentality. We are dealing with a physical state.) The second way to assess readiness is to know whether the business is fiscally ready. Let’s dive in and explore each […]
May 9, 2017
taxes

Tax Tips for Cash Intensive Small Businesses

Small business owners that offer goods and services through an online platform may be part of the sharing economy. Some participate part time while others operate full time. Activities such as ride sharing, freelancing, renting a spare bedroom and crowd funding are usually taxable. The IRS has a Sharing Economy Tax Center to help these taxpayers find the information and help they need to meet their tax obligations. Tax Tips for Cash-Intensive Small Businesses Taxes. Sharing economy activity is generally taxable. Payments received in the form of money, goods, property or services may require filing a tax return to report that income to the IRS.Tips. People often conduct sharing-economy activities electronically but tips in cash are still a common occurrence. Tips are generally subject to withholding. Small businesses or self-employed persons should report tips they receive as income on Schedule C or C-EZ. See Publication 334, Tax Guide for Small Business, for more details. Large Cash Amounts. Any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, within 15 days after receiving […]
May 5, 2017
tips for entrepreneurial doctors

Mistakes Entrepreneurial Doctors Often Make

One niche of small businesses that we often work with at Heritage Investors is an entrepreneurial doctor. Those are the doctors that work outside of a hospital and aren’t W2 employees. They can be dentists, veterinarians, optometrist, etc. They own their practice. When working with this group, I often see a variety of mistakes entrepreneurial doctors often make when it comes to the business side of their vocation. Remember, these guys are brilliant doctors with varying designations. However, most don’t earn MBA’s on top of that. Business is often not an easy modle for these educated folks to understand. Here are nine mistakes I often see in their business models. 1. Negotiate for themselves We have a tendency to think if we do it ourselves we will save a substantial amount of money and be better off. That’s just not really the case. A book I recently read, The Millionaire Mind by Thomas J. Stanley discusses this very topic. One of the top differences in those who obtain the title of millionaire, are they hire professionals to do the job. They’re not DIY guys. They want professionals to help them get the best results. The millionaires themselves focus all their […]