Jack Koetting.com

This year when the ball descends in Times Square, it will signal the end of some very special tax advantages for those who currently have, or will start a home based business.  And this is true, whether it is to supplement the income they receive from their regular J-O-B, or be their only source of income.

I was checking out the blog posts of one of my business mentors, Steven Shook, recently, when I came across this information.  Even those of us who have had a home based business for awhile now, may not be aware of the special ruling the IRS made for the 2011 tax year, in which start up costs for a home based business (up to a maximum of $5,000) may be deducted all in one year, instead of the usual practice of spreading the costs over 15 yrs.

According to the IRS website, the sections of the tax code which address this are IRC Sec 195(c)(1)(A) and IRC Sec 195(b).  It covers not only the actual costs of starting a business at home, but the costs of evaluating a business to decide which is right for your situation.  However, as I said, time is short.

It also goes without saying that the start up costs are much less than for a traditional business.  Plus when you have a home business, you have the time freedom to choose when you work, and when you can spend quality time in other activities – something that you probably don’t have with your current job. If you don’t currently have a home based business, I highly suggest that you start one before Dec 31.  It’s like getting free money.  Remember, it doesn’t take any special skill to start a home business.  Do you have an interest in travel?  Or would you like to improve people’s health?  Find something you are or can become passionate about, then find a company and products to represent.

If you already have one, I suggest to you that this particular tax advantage could be a great recruiting tool for your business. if you can show your prospects how they can recoup some or all of their initial investment.

Oh, and by the way, in case the subject of pyramid scheme is raised by your prospect, the links above also include a paragraph from the IRS to explain the difference between a legitimate multi level marketing business and a pyramid scheme.  That’s good to know, right?

For more reasons why having a home based business makes dollars and sense, watch the following 2 videos by well-known home business CPA, Sandy Botkin.

http://www.youtube.com/watch?v=cOR2ZwvhbOY

In this economy, it makes more sense than ever to have a home based business.  Are you ready to get yours started?

What separates a successful business presentation from an unsuccessful one? I feel it’s the way certain parts are handled. I call them the 3 important parts to your business presentation. This information should be especially helpful to beginning networkers. However, even those that have been in the industry for a while, sometimes will lose a good prospect for their business because they don’t keep this in mind. They could do everything else right in recruiting, and still “drop the ball at the goal line”. In fact, if your recruiting success is not what you want it to be, you might want to pay attention here.

So what are these 3 important parts to include in your presentation, and improve your chance of success? They are
1. features
2. advantages
3. benefits

Now at first glance you may think, well they’re pretty much all the same thing. But beware – that’s where the pitfall is.  In fact, the most common mistake is “mistaking features for benefits”.

We’ll talk about each one so that you understand them better, and are aware of how they should be used in the conversation.  So we need to assume that your prospect has a problem, that can possibly be addressed by the solution you’re offering.  Solving problems is what sales is all about.

Features are merely facts, bits of information, or perhaps data pertaining to your business or company.  Sometimes it’s a characteristic of what you do.  The skill is in picking the right feature or features that specifically address your prospect’s situation.  Things like longevity of the company, what the products are, even the idea of “time freedom”, or “be your own boss”  by themselves,  mean nothing, unless they’re relevant, and  customized for the person you’re speaking with.

Advantages answer the question of “how” a particular feature can be used to solve your prospect’s problem.  Once you’ve identified the right feature, if you can point out to them how it takes care of their need, you’ll surely capture their attention.  For example, with time freedom, if your prospect has to miss all of his son’s ball games because he’s at work, you could explain how by having a home business, he could make the time to be there by designing his own schedule.

Benefits put it all together.  In other words, a benefit combines the right feature and it’s advantage, to satisfy an emotional need.  People may listen to logic, but they make decisions based on emotions.  If advantages are the “how” then benefits are the “why”.  Continuing the conversation above, you could say, “That way, you wouldn’t feel bad about not being there to support him”.  This is the real emotional reason underlying his interest in time freedom.  How would you know that? Through the dialogue you had by asking good probing questions, and most importantly, being a good listener to their answers.

So the next time you determine exactly what your prospect needs or wants, and you’re ready to present your business opportunity, make sure you speak in terms of specific features, advantages and most of all, benefits.  Remember, benefits make people “feel” better, and therefore drive positive decisions.

Comedy giants - Abbott & Costello

Maybe you’ve seen this, but got this from a friend today, put a smile on my face, and decided to share it.

Abbott & Costello – Computer Shopping

Costello calls to buy a computer from Abbott.  Here’s how it goes:

ABBOTT: Super Duper computer store. Can I help you?

COSTELLO: Thanks I’m setting up an office in my den and I’m thinking about buying a computer.

ABBOTT: Mac?

COSTELLO: No, the name’s Lou.

ABBOTT: Your computer?

COSTELLO: I don’t own a computer. I want to buy one.

ABBOTT: Mac?

COSTELLO: I told you, my name’s Lou.

ABBOTT: What about Windows?

COSTELLO: Why? Will it get stuffy in here?

ABBOTT: Do you want a computer with Windows?

COSTELLO: I don’t know. What will I see when I look at the windows?

ABBOTT: Wallpaper.

COSTELLO: Never mind the windows. I need a computer and software.

ABBOTT: Software for Windows?

COSTELLO: No. On the computer! I need something I can use to write proposals, track expenses and run my business. What do you have?

ABBOTT: Office.

COSTELLO: Yeah, for my office. Can you recommend anything?

ABBOTT: I just did.

COSTELLO: You just did what?

ABBOTT: Recommend something.

COSTELLO: You recommended something?

ABBOTT: Yes.

COSTELLO: For my office?

ABBOTT: Yes.

COSTELLO: OK, what did you recommend for my office?

ABBOTT: Office.

COSTELLO: Yes, for my office!

ABBOTT: I recommend Office with Windows.

COSTELLO: I already have an office with windows! OK, let’s just say I’m sitting at my computer and I want to type a proposal. What do I need?

ABBOTT: Word.

COSTELLO: What word?

ABBOTT: Word in Office.

COSTELLO: The only word in office is office.

ABBOTT: The Word in Office for Windows.

COSTELLO: Which word in office for windows?

ABBOTT: The Word you get when you click the blue ‘W’.

COSTELLO: I’m going to click your blue ‘w’ if you don’t start with some straight answers. What about financial bookkeeping? You have anything I can track my money with?

ABBOTT: Money.

COSTELLO: That’s right. What do you have?

ABBOTT: Money.

COSTELLO: I need money to track my money?

ABBOTT: It comes bundled with your computer.

COSTELLO: What’s bundled with my computer?

ABBOTT: Money.

COSTELLO: Money comes with my computer?

ABBOTT: Yes. No extra charge.

COSTELLO: I get a bundle of money with my computer? How much?

ABBOTT: One copy.

COSTELLO: Isn’t it illegal to copy money?

ABBOTT: Microsoft gave us a license to copy Money.

COSTELLO: They can give you a license to copy money?

ABBOTT: Why not? THEY OWN IT!

(A few days later)

ABBOTT: Super Duper computer store. Can I help you?

COSTELLO: How do I turn my computer off?

ABBOTT: Click on ‘START’….. ………