Professional Equities - March 2020

Insider Passive Residual Income THEULTIMATEPASSIVERESIDUAL INCOME TM March2020 The

- FROM THE DESK OF

Bill Moist

FASTEST WAY TO INCREASE OUR PROFITS

Introduction – Dan Kennedy has been teaching business owners for years that the fastest way to increase profits is to increase prices. This is often met with resistance by owners and managers. We’ve been taught in business school that our price should be some markup from cost. And that we should be competitively priced. However, increasing prices has two great benefits – one for the customer and one for the business. For the customer, the higher sales prices allow businesses to provide better service, better quality, and better value. For the business, raising the lifetime value of a customer allows it to spend more money to get and keep that customer.

DEDUCTING TO ZERO How to Thrive This Tax Season

If you’re a small-business owner, tax seasonmay feel daunting. The federal tax code and supporting documents are nearly 70,000 pages long, and you just want tomake sure you’re saving as muchmoney as possible. But how likely is it that you’ll do so? Over 93% of small-business owners overpaid their taxes in the past decade, according to Forbes. “The best taxes are the ones you don’t have to pay,”writes Garrett B. Gunderson, the financial advisor who reported the statistic. Most small-business owners are unaware of the many deductibles and strategies they can use to make the most of their money this year. KEEP EVERY RECEIPT During the year, receipts can create clutter and disorganization, which discourages most people from keeping track of them. However, you can earn plenty of deductibles by keeping each and every receipt, whether personal or business. Without spending any extra money, you canmake sure the savings you’ve already earned don’t vanish. The app 1tap receipts makes it incredibly easy. Just take photos of your receipts (even if they’re double-sided!), and it’ll automatically import the information to the app. It can sync with most bookkeeping and tax-filing software and makes your life incredibly easy during tax season. DEDUCT, DEDUCT, DEDUCT Are you aware of all your available tax deductions? All of the following are 100% tax-deductible: salaries and benefits, telephone and internet expenses, education, depreciation, home office, interest, legal and professional feeds, moving expenses, rent expenses, business meals, business insurance, business interest and bank fees, business use of your car, and advertising and promotion. Finally, any personal expenses you can link to your business can also be deducted.

My friend, Mike Crow, is a business coach to home inspectors and has successfully started and sold

several. Mike is one of the higher priced home inspection companies in Dallas/

Fort Worth, but he offers services and value to the customer that far exceed the price differential. His competitors are unable to meet the value of his service.

Conclusion – Studies have shown only 20% of our purchase decisions are based only on price. Yet, it seems that 80% of marketing is based primarily on price. Businesses are wise to consider increasing prices to increase profits.

–Bill Moist

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