A PSA About Your Tax Minimization Strategy

This week I have a quick PSA for you to make sure you’re not shooting yourself in the foot with your tax strategy. This is going to be a super quick post, but I hope that you’ll take it to heart.

As you all know, I’ve served literally thousands of entrepreneurs – and I don’t mean because I have thousands of followers here on YouTube. Between Venture Catalyst Consulting, the volunteer work I’ve done, and the non-profits I’ve managed – I’ve seen a broad spectrum of business owners from a number of different industries and backgrounds. One thing that is incredibly common, seems like the smart thing to do, and then often comes back to bite you in the butt is the vast majority of entrepreneurs’ desire to get their tax bill down to almost nothing.

Now, don’t get me wrong, I hate paying taxes just as much as the next person, but if you’re a business owner you need to take a step back, think about your long-term goals, and then work with your accountant to determine the best tax optimization strategy for you; not the best tax minimization strategy.

A tax minimization strategy is just as it sounds – you will manage your business and your finances in such a way that you’ll pay the smallest dollar amount in taxes as is legally possible each year, focusing just on that year.

The problem is, when you do this as a business owner you’re potentially making your business look less successful than it is. If you plan to work in your business forever, shut it down when you retire, and self-fund the entire time, that may not be a big deal. If you ever want to get a loan, however, or sell your company, you’re making life harder on yourself. Lenders and buyers want to see that you make money, not that you eek by.

What your tax strategy should be each year depends on your business and your goals and you must work with a qualified professional to determine what that should be. However, make sure that you’re not opting for a tax minimization strategy by default when it could end up costing you big a few years from now. I’ve had enough clients get stuck in their businesses for 3, 5, even 10 years beyond when they intended to sell because they’d been utilizing a tax minimization strategy the entire time and found out that that made them unattractive acquisition targets. Don’t let that be you.

Guest Post: How to Effectively Communicate With Your Potential Patients Online

It’s guest post week again and today is all about those medical professionals out there that want to attract new patients online. We’ll hear from the folks over at My Digital Dentistry about how to effectively communicate with your potential patients online, so that you can fill all of your appointment slots and have a great relationship with your patients. Here they are: Continue Reading

A New Perspective on Networking That Will Be Especially Exciting for Introverts

Today we’re going to talk about networking but, I promise you, this discussion is going to look different than most of the networking discussions you’ve had before and it will be especially helpful for those of you out there who DESPISE networking…especially you introverts. Continue Reading

How to Interview an Entrepreneurship Center…and Why You Should

As I’ve laid out a number of times (click here and here for the basics), there are major problems with non-profit entrepreneurship support. Given that fact, it’s important for entrepreneurs to be choosy about which entrepreneurship support organizations (ESOs) they decide to work with, so here are some tips for interviewing entrepreneurship centers. Continue Reading

Sponsored Post: Use These Tips to Organize Your Home Office on a Budget

Keeping your home office organized is an important contribution to your productivity and peace of mind. It can be quite frustrating and time-consuming when you are always having to stop to search for what you need. Getting your office organized does not need to cost an arm and a leg.  A few simple tips can help you without depleting your bank account. Continue Reading