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					Smart Home Business Owners

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473

Summary:
Home business owners wear many hates. Salesman. Accountant. Ad executive.
CEO. With so many hats, often home business owners end up with nothing
more than just a big, hairy headache. But with some basic tips and
organization, the small home business owner can avoid headaches and find
financial success with his big idea that led him home to begin with.
Success home business entrepreneurs do three major things to successfully
manage their businesses.

First and foremost, the...


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Article Body:
Home business owners wear many hates. Salesman. Accountant. Ad executive.
CEO. With so many hats, often home business owners end up with nothing
more than just a big, hairy headache. But with some basic tips and
organization, the small home business owner can avoid headaches and find
financial success with his big idea that led him home to begin with.
Success home business entrepreneurs do three major things to successfully
manage their businesses.

First and foremost, they pay attention. They do not let money just slip
through their fingers to pay off what seems like a necessity. Instead,
they make prudent, specific decisions on a daily basis. These type of
business owners will examine invoices carefully. They're the kind of
people that stand at the department store check out and count their
change before they walk away. They're the penny pinchers, the economists
in our world. Every successful home business owner must find a way to do
just that and to pay attention.

Secondly, the successful home business owner will keep his business
account separate from his home account. Many new home business owners
simply pour their business income into their home account. Not only is
this a bad way to manage money, but it will cost money when quarterly
income taxes are due. Instead, the successful home business owner will
keep a separate checking account for his business. All of the business
income will go into this account, and all business expenses come out of
that account. When the home business owner needs money for his home
account, he will pay himself a salary out of his business account and set
aside 25 percent for taxes. Those who fail to set aside money for taxes,
will find themselves in great angst when April rolls around.

Finally, the successful home business owner simply tells his money where
to go instead of allowing it to walk away from his hands and into someone
else's. He creates a budget and lives by it at home, and he creates a
budget at lives by it at work. Successful home businessmen are successful
money managers both at home and at business. They create a budget where
they spend every dollar of income on paper before writing a check. Then
once they have their budget written, they can tell their money where to
go and thus do not lose any money through the financial cracks.

Many new home business owners will take incredible risks to own their own
business. They do scary things like take out home equity loans for start
up money instead of starting slow and managing their money. You do not
have to lose your home when you have a home business. Manage money
smartly, and you'll find yourself looking for a new home not because
you're losing yours, but because you need a bigger one.

				
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