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[Rawhide]

OKAY!!! Here we go into full swing.

I'm going to dig out some of my material that I started up my school with and let ya'll pick at it.

1. Evaluate you reasons for going into the business in the first place most businesses fail in the first 5 years.  You MUST feel passionate about 2 major things (In my opinion):
 A. Teaching - it is highly involved and mentally draining
 B. Working for yourself & your clients

2. What are your skills?
   A. Can you teach at all, or are you just wanting to be in charge? Be evaluated bypeople who respect & care about you enough to tell you the truth and why.

   B. Do you have any business skills?  Do you keep good personal finances? This one aspect can tell you it is a good idea or not!

   C. Do you have good people skills?  If you run a school you're gonna need these!

   D. Are you willing to work a second job to realize this dream (I worked a second jobs for 2 years waking up at 4 AM and worked until 9 PM at the school until I finally got a break)?  Because it may take a while before you can take a salary.  Our first check to ourselves $200!  Thats after 8-12 months! 

   E.  I strongly advise against partnerships with a friend or investor.  I prefer family run businesses.  It isn't the hard work, its when the good times come and the money starts to flow.

  F.  How much money can you put into the business?

  G. WHERE is your business going to be located?  Know the income and demographics of the area (the local city hall will have this as well as the internet)

  H.  What are you going to teach?  Have an attainable progression plan

  I.  Are you going to teach kids or adults or both?  Each division needs its own special skills.

  J. Are you going to teach all the classes or will you hire someone to help you?

  K. What hours will you be keeping (make sure you know the local school times and when most adults get out of work in your area)

  L. I recommend if you teach both children and adults that you have SEPERATE class times.  I know people who do combine these classes but personally I find it difficult if not impossible.  Its no the old one room class room any more.

  M. Start small get big.  Make sure the place you start in is managable.  We started in a little 2100 sq foot place and moved to a whopping 4700 sq ft location.  We had to.  It was either grow or die.  Too much space too soon may kill you

  N. If you can't afford a space try the local rec center, college or YMCA.  These are good places to start.  Even your garage is great! Or park (in decent weather)

  O. Do you have patience - One of my old instructors wisely told me - "The patient man wins."  I have found it to be true.  Its also the hardest thing!

More later....

[mleone]

Do not forget tax write offs
that anything for the business (within reason) is a tax write off

If you make 50,000 a year
and you spend 10,000 for the business
you are getting taxed only on 40,000.
Pens paper, fax machine computer, software are all tax write offs. (The key is anything for the business)


I just closed my web business not too long ago. Tired of doing websites 
Im going to give another stab with a martial arts business.
I love Martial arts and have since I was 12

Jeff you need to put out a dvd on how to run a school!

[mleone]

A good write off point

Imagine Hock Donating $5.00 off every order for Tsunami Victims
In essence he would carve alot of tax season not to mention donating help.

Write offs are even donations like the above example.   

[Hock]

Imagine Hock Donating $5.00 off every order for Tsunami Victims
In essence he would carve alot of tax season not to mention donating help.


Life is such a vicious cycle. I could donate $5 per order.
Then the Red Cross could feed me October through December because I gave away all those fivers earlier in the year...Then people could donate to the Red Cross! Life is such a vicious cycle...

Someone famous once said,
           "you have to have write-ons before you can have write-offs..."   

Hock

[mleone]

Hock,
I dont expect any one to donate to any one organization.

But yes your correct Write ons before write offs.
I can appreciate your point of view. Its just good for taxes to write off basic stuff for the business including rent and Martial arts insurance.

Thanks
Mario

Ps Thanks for the past inspiration to coming into your system. Im enjoying it.

[pmh1nic]

Good points Rawhide.

[bcorey]

Can seminar costs and travel costs be written off ?  Its an investment in your business, so I would think so.  If so, I could probably declare a loss for this year with all the seminars and camps I've gone to.  Anyone.....?

I'm glad this thread was started.  I'm practically paying my students to come (at least it feels like it right now). 

[Rawhide]

Yes you can write off seminars and training.  Its professional development and education.  Obviusly within limits but most of the people (including myself) don't spend a fortune on seminars as the money is just not there.  Talk to a CPA - more importantly get a CPA so he/she can show the ropes and let you know what can and can't be written off.

I THINK travel can be written off but I'll check on that... Thats my wife's department.  I'll get back to you.

[Professor]

Yes you can write off seminars and training.  Its professional development and education.  Obviusly within limits but most of the people (including myself) don't spend a fortune on seminars as the money is just not there.  Talk to a CPA - more importantly get a CPA so he/she can show the ropes and let you know what can and can't be written off.

I THINK travel can be written off but I'll check on that... Thats my wife's department.  I'll get back to you.

Start with a DBA:   Jeff Allen (Doing Business As, DBA) Sage Performance.....This will get you your tax number and start you out.....


Yes, travel can and should be taken...It's one of the biggest...

[Rawhide]

Thanks Jeff!