3 Financial Tips to Start Your Own Business
Q & A with Robert A. Arthurs of “Robert Arthurs International”
Owning a business will give every entrepreneur the chance to financial freedom and be the master of their own dream. But in reality, every startup requires certain amount of capital to accelerate its growth and gain its projected return of investment. The questions cited below tackled the advantages of owning a business and the use of home equity financing as the source of capital to run a startup.
Capital Direct Lending, in their Tele-Seminar with Robert Arthurs, a leading Certified Business Coach and entrepreneur, presented three important questions that will shed light on the advantages of owning a business and using home equity financing as the source of capital to run a business.
Financial Tips on Owning a Business
CD: Okay, Id like to look at the opportunities Rob again from the financial perspective and I think I’d like to ask you truly financially speaking. What are some of the biggest advantages of owning your own business?
Rob: Thanks Jacob, first let me say these are my thoughts and beliefs, please do your own research with your tax department I am not a tax guy) I think the biggest advantage is that anything you do that’s related to making money in your business becomes a write-off. If you have a home-based business and your own offices in your home- you write off a portion of your home; you write off a car, portion of that home where your office is located; you write a portion of your telephone bill, your utilities those sort of things but it has to be business we’re there is activity.
There’s no mystery or there’s no pulling the wool over someone’s eyes. It’s all about whatever is related to making money for your business becomes a write-off or a portion of a write-off. I think that’s a huge advantage for a homeowner who may have space in their home to open up a home-based office. So even if self-employed, you’re still can’t write off to and from work. But if you’re driving around two different clients, then it becomes a different story. So portions of your gasoline and maintenance on your car could be considered a write-off. If you’re using your vehicle for business you can get a commercial plate that allows you to pull in front of the commercial parking zone and go up and do business for a certain amount of time. So it definitely has its advantages.
Leveraging Your Home Equity to Start a Business
CD: As a business coach and just from your perspective what you want, what do you see the advantages in home equity financing?
Rob: I think the home equity and much like it alluded to in the very beginning Jacob is about a chance to get take some equity out of your home and being able to put it into words may be creating your dreams, your aspirations, your up starting your own business at a lower interest rate. And I think leveraging your home as-is, it’s the best-kept secret of the most wealthy people in North America. I mean the most wealthy people and I mean wealthy and not just paper wealthy, but wealthy individuals in a start-up business cause they know how to leverage and leveraging your home with your equity is a great way to start a business. I think with the low-interest rates right now is a fabulous time to start to look at that. But within reason, I mean entrepreneurship or business ownership is all about risk. But you got to take the calculated risk because you’re talking about your shelter; You’re talking about the thing over top of your head.
So you make sure you’re taking a calculated risk, you know/ Make sure you got a business plan because now you’re talking about your family and security. It’s a great way to start a business. But you have to be within reason and make sure that you’ve got some good planning because failing to plan is planning to fail.
Do Business the Right Way to Maximize Your Investment
CD: Robert starts with an email question from Mary in Truro Nova Scotia. My husband and I are considering renovating our home so we can run a bed and breakfast in our retirement. What are some things to watch for?
Rob: Great question! It’s way, especially for people that are retiring and looking to maximize their home and income. Those renovations in their home could also now become part of a write-off (check with your local tax department). So a bed & breakfast, are a fabulous way to continue working…especially if you’ve got a home that you like and you really want to put some money into and then take care of the home. But one thing you’ve got to watch out for is a lot of people do this sort of underground. They do illegal renovations. They can’t get the proper licensing or permitting from the cities. They can’t advertise in certain bed and breakfast associations and others across the country that you want to get that will help promote and market your business, but it has to be legitimate.
So if Mary is looking into starting a business in Nova Scotia. God bless her. I hope all the best of luck. But Mary, make sure you keep it above the board. Do all and get all the profit permitting you the need to look at your local regulations from municipalities because if you truly try to do it underground and not legal so to speak what you’re going to find is not to be able to market the way it could be marketed properly to make sure that you are here making money by keeping those rooms filled 365 days a year if that’s what you wish.
But if you do it the legal way and a proper way the proper permitting way you’ll have some great success. I find a lot of people wanting to be in the bed and breakfast business, it’s like trying to put in an illegal suite in your basement and not letting the city know about it. It’s really tough to put a sign on your front lawn saying bed and breakfast in a beautiful character home. So an above-ground business legitimate business is the best way to capitalize on your home.
In a Nut Shell!
Here are the top 3 takeaways:
1. A write-off to consider should be business-related. Anything you do related to generating money from business becomes a tax write-off.
2. Leveraging your home equity to start a business, make an investment or purchase a property is one of the best secrets to building wealth.
3. Always keep your business above the board and run it legitimately. That way you will be able to market it properly and gain more profit from doing so.
“Robert Arthurs” means “Arthurs Ventures Inc (AVI) ” DBA “Robert Arthurs International” This document is for general information purposes only, and is intended as a helpful resource, but is by no means exhaustive. While the information presented has been researched and thought to be reasonable and accurate at the time of writing, we do not warrant the accuracy or completeness of any information therein. Robert Arthurs of (AVI) does not make any representations as to its completeness or as to its accuracy.
The material herein is not a substitute for financial and/or legal advice from a registered financial planner, accountant or law firm. Always consult a professional before making any financial adjustments or decisions. By reviewing the information contained in this document, the reader acknowledges and agrees that Robert Arthurs of (AVI) and/or its agents are not professional financial planners or advisors. Readers should conduct their own investigations, analysis, and due diligence, draw their own conclusions, and make their own decisions. The reader further acknowledges and agrees that Robert Arthurs of (AVI). and/or its agents do not assume and hereby disclaim any liability to any party for any loss or damage caused by the use of the information contained herein or errors or omissions in the information contained in this document in making any financial decision, whether such errors or omissions result from negligence, accident or any other cause. This material herein is licensed by Robert Arthurs of (AVI). No copies or portions thereof may be reproduced or used without the written consent of Robert Arthurs of (AVI)
Errors and omissions exclude