What is in YOUR cup of tea?

[Sheryllyn]

When you think of working from home, what are you looking for?

Do you want to distribute products? This requires either storing them in your home (or rental unit), and delivering them to others (or having them pick them up). The drawbacks are storage space, your funds tied up in stock, and time and gas to hook up with someone for a delivery. Drawbacks may also include bounced checks, a busy schedule (yours and theirs), and an interruption of your schedule to meet theirs. Or having peole drop by to get products when you don't expect them (or your house isn't "company ready")! The more children (or activities) you have, the more difficult this can be.

An alternative to this scenario can be an online company (not your personal website, LOL) that your customers call into/log onto and order their products. The products are dropped shipped to them, taking out a lot of the drawacks, above. However, there are drawbacks, too. This actually effects both scenarios, as these companies usually require a minimum purchase per month to assure you receive your commissions. Yes, these companies are typically Multi-Level-Marketing (MLMs).

Let me state up-front that I am not bashing MLMs. They can be wonderful organizations and foster terrific relationships.

Do you envision having your own business? This could be online or offline (a store-front) or a combination there of? Drawbacks can include finding a storefront (and all the government taxes included therein); establishing your vendors, working with their distributors/sales staff (depending on the vendor), choosing your products, cost of inventory, employees, payroll taxes, theft, etc. Yet where would we be without our favorite stores? As a SAHM you could own the store, and not run it!

Any time you deal with inventory, you have to have a distribution/demand for the product that is faster than the aging of the product. You also want to have cash coming back in so your hard-earned funds are not tied up in stock!

Do you want to distribute information? The easiest way to do this is to write electronic books on what you know, and make them available on a web site for a fee. If you print them, then you have the storage and inventory cost situation again.

After you know where you are headed, then you have to consider what you want to distribute!

S.

[Sheryllyn]

What do you want to distribute?

What subjects can you address with passion?

What subjects do you know really, really well?

What subjects do others seek you out for advice?

THIS is where you should begin, where you should explore.

After you have a subject area, what problem can you address? What need can you fill? What problem can you fill?

It's altruistic to say "I want to share the knowledge of X with the world."

Altruism hasn't been known to bring in $$$!

That may sound "cold," yet is making money why you wanted to work from home? It is "work" from home after all, not "charity" from home.

S.

[Sheryllyn]

{Taking a long sip of tea....}

You're mulling over the idea. Considering HOW to fit the burden of products or information, cash flow, state resale licenses, city business taxes, neighborhood association codes, and distribution into something you can do from home.

Yes, if you check with your government entity, most of them require business taxes to be paid for running an MLM from your home. Unless you are not profitable, which should cause you to question why you are in it!

My favorite income sources are PASSIVE income. That means income I receive whether I do anything, or not.

This can take a variety of forms:
1) an MLM that pays you monthly for each person you have sponsored.

Some MLMs pay you a lot upon signing and a little each month. I know someone that made $11 MILLION in an MLM. It was mostly signing bonuses. He had very little monthly residual income. The product was phone services, and there was nothing to deliver.

Other MLMs pay you an indecent amount per month for each member you have enrolled. When the phone MLM died, he joined another, and now receives $20 per member/customer on his first level; $2 per member on levels 2-6; and $5 per member on level 7. If you had 3 and everyone below you had 3, by level 7 your monthly income would be $13,000+ per month!

THAT is the power of multi-level-marketing!

2) An investment with a monthly return. Think about how a savings account works. Now conside this on a MUCH larger scale - not 3% a year, but 8-20% per month.

This can take MANY forms, from real solid programs to scams. I've seen a lot. You have to be careful.

This is, however, my hands-down favorite form of income. I have found a man who trades the US stock market very, very well. I have done a lot of trading myself, and understand what he does. It is very, very safe. And very, very, very profitable.

I set up a brokerage account in my name, and assign him as the advisor/trader. He notifies the brokerage firm of a trade, and they assign his directions to the funds in my account. The account is mine, he has not access to it. I can access the money at any time, even if I have to close a trade.

Because I've seen traders brag about their returns and then lose my money, I watched him for a long time. He did so well, I couldn't believe it. I felt bad for not having funded my account earlier! Here's why -

...over the past 10 months, his return on our investment (ROI) has been 90%! Can you believe it? We can conceivably have our investments double with this next trade. And our May 2005 trade made over 10% in 16 days! I SO enjoyed withdrawing the cash to my bank account. $1000 that I didn't do any work for, yet reaped the blessing of the trader's knowledge and expertise!

Here's why I like it best: I make money while at home teaching my children. No potions, lotions or storage. No deliveries. I fill my day with my life (which is blessedly full already), and the trader makes money for us.

The drawbacks including finding a good trader (from your experience or references of others); and meeting the minumum to fund your account. For instance, our trader works with units of $5,000.00 USD. The more you can put in, the lower your trading costs are. $60 of $5000 is twice the percentage of $60 of $10,000.

We have two accounts he trades - a "liquid" account (where I can withdrawal the profits) and my IRA. The IRA is our children's college fund. And, according to the IRS can be traded with certain types of investments. His qualifies. I'm especially excited about the IRA, for now it will see some real growth! (And maybe catch up to the cost of college, LOL).

S.

[Sheryllyn]

Now that you've got a run-down of how and what you can do (in overall terms) from home,

WHY would you want to do it?

There are several:
1) additional income
2) residual income
3) you want the interaction with other adults (clears throat!), and best of all,
4) tax deductions!

As of our last tax filing (2004 tax year), the IRS had 138 DIFFERENT deductions available to home-based business owners.

That's a lot of money on the table. It can go to you, or it can go to the IRS.

YOU chose!

Do YOU need to learn the tax code? No. You can, if you are that type. That's where a CPA comes in handy, especially one that knows the IRS code inside and out.

Here again, referrals and your own experience are the guides.

For instance, my older brother has a local CPA that is considered a small-business specialist (bro sells and installs glass-enclosed porches in the midwest). Our CPA reviewed bro's past 3 year filings, and found $9000.00! That's a lot of over-paid taxes!

A simple refiling, and the cash comes back, with interest. Thank you IRS!

Quick! Where's that trader? I've got money to fund my account!

Personally, I've seen our CPA save the average person $2000 - $4000 a year. A medical doctor saved over $200,000 in one year.

Who said knowledge was power? and Time is money?

Actually, knowledge gives you the capacity for power. You still have to connect the dots and put together a package that works for you.

S.

[Sheryllyn]

I certainly hope these posts have helped you identify your goals in relationship to your dreams.

As you might have guessed, I am involved the study of systems. Computers, money, business, etc. I find systems facinating. (Who said I was geek?!?)

And forums allow me to be altruistic and share information!

I've studied businesses for a long time. I love to watch them grow. Some business are legal, and some try to run beneath the radar (but they always get caught). As it says in Numbers, their sin is found out. Unfortunately, they get away with a lot of money from others.

If I can help you, I'll try. If you'd like to know more about our trader, or CPA, I'll be happy to introduce you.

As SAHMs, we are sisters, a family.

And families have to stick together.

Your Sister in Christ,

Sheryllyn