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Why Start An Internet Online Business?

An Internet online business could be the ideal solution for anyone who’s ever dreamed of running their own business. Lots of people would love the freedom to be their own boss, but they often don’t know how to get started.

Some believe they need to have huge amounts of money to invest into starting a new business. Others worry about not having a steady paycheck each week. These things might be true if you’re thinking about traditional business models, but Internet online business models are considerably different.

You see, when you begin your business online you have a huge advantage. You don’t have to worry about the high costs involved in opening a store, paying rent on business premises, making enough money to pay staff or to pay your suppliers to deliver more products.

Instead, you simply need to spend a few bucks to create and design a website that becomes your storefront and you’re in business. Your site displays your products and gives customers all the information they need. Essentially, it becomes your best salesperson without you having to pay it a salary to get the job done.

Your website is available day and night to any customers who want to browse. It doesn’t take days off and it won’t disappear on vacation for weeks. It just keeps working for you.

If you set up your website the right way, your customers should be able to buy products from you while they’re browsing. They can add the items they want to your shopping cart software and when they’re done shopping they can check out and pay for their purchases instantly.

You get the benefit of being paid for your products whether you’re at work or not. Your website does all the hard work for you. That’s the beauty of owning an Internet online business.

Depending on the types of products you’ve chosen, your customers may be able to download their purchases instantly while they’re still on your site. If you have physical products available, your website systems will generate an email notification for you, detailing your customer’s shipping details. All you need to do is package up the order and ship it out.

Of course, you do still need to put in the work and effort to get your business up to this level. Your job is to find ways to attract targeted customers to visit your website in the first place. Targeted customers are those people who are already interested in what you’re selling, so you’re not just getting random visitors. There are so many easy ways to do this, and the good news is that many traffic generation methods are completely free.

If you’ve ever dreamed of being your own boss and owning your own business, you really should consider the benefits of starting an Internet online business. You can get started on a shoestring budget, but you have the potential to turn it into a very profitable enterprise.

Starting Your Own Online Business – Create A Road Map And Define Your Goals To Grow Your Business

Are you starting your own online business? Feeling overwhelmed and confused is a common complaint from people who have seized the opportunity that the internet presents to make money working online. When I first began working on the internet, I was excited about the prospect of being able to work from home using my computer, and not having to join the dash of traffic to and from work each day. However, I soon realised that I was going to have to become really organized at work in order to get things done that would build my web business Starting your own online business involves many moving parts and without a structured system in place you’ll find that not much gets done to build your business.

So how can you organize your online business in a way that enables you to get things done?

Create Your Business Plan And The Road Map To Get There

When we went on holiday as children my parents would always take out their map to plan the journey. My mother would make a booking for us to stay in a cottage at the coast. My Dad would then plan the journey by looking at the map and deciding where we would have to stay overnight. He would then be able to decide when we needed to leave the farm in order to arrive at our overnight accommodation before dark. He looked at our end destination and worked backwards to plan the journey.

When you’re starting your own online business, you need to do the same thing. Look at where and what you want your online business to be. For example, make a list of what goals you need to achieve through your online business. Divide those goals into yearly tasks and then break those down into quarterly targets. Next, formulate your weekly activities that will allow you to achieve those quarterly targets. Once you have a list of weekly work you need to do, you can then divide that up into daily tasks. You will then be able to create a daily plan of activities to get done that will build your online business.

What this process does is to define the work you need to be doing and to set a deadline against it. When you have a plan and a deadline you are far more likely to get it done. This concept actually follows on from a law called the Parkinson’s Law. What this law states is that ‘work expands to fill the time available for its completion.’

So, if you want to overcome those feelings of overwhelm when you’re building your web business, and increase productivity you need to remember this law and set deadlines for the various tasks that need doing in your online business.

Capital Gains Tax Part 2 ~ Business Asset Reliefs

This is the second article in a short series dealing with Capital Gains Tax (CGT) and provides an insight into the key conditions and details of the following business asset reliefs:

  1. Entrepreneurs’ Relief
  2. Business Asset Gift Hold-Over Relief
  3. Replacement of Business Asset Rollover Relief
  4. Incorporation Relief
  5. Enterprise Investment Scheme Reinvestment Relief

It should be noted that the disposal of any business asset needs to be carefully planned to ensure all of the tax implications and conditions are fully appreciated and considered. It is strongly recommended that professional advice is sought prior to the disposal of any business or business asset.

Entrepreneurs’ Relief

Entrepreneurs’ Relief applies whereby certain qualifying gains are taxed at a special reduced rate of CGT of 10% relating to the following business disposals:

  1. The whole or part of a trading business (note however that an isolated business asset disposal does not qualify)
  2. Shares in a trading company where the taxpayer is an officer or employee and holds 5% or more of the shares
  3. Assets formerly used in a business following cessation of trading

There is a generous lifetime limit of £10 million gains that are eligible but note that qualifying assets must have been owned by the person making the disposal for at least 12 months prior to sale.

The relief must be claimed within 12 months of the 31 January following the end of the tax year in which the disposal is made.

Unlike other taxable gains the 10% ER rate applies irrespective of the taxpayer’s total taxable income (although any gains qualifying for ER must be set against any unused basic rate band in priority to non-qualifying gains).

Business Asset Gift Hold-Over Relief

Generally a gift of a chargeable asset is liable to CGT using the market value of the gifted asset in calculating the capital gain.

Where a qualifying business asset is gifted (for example, to adult children when handing down part or all of a family business) the capital gain arising at the date of the gift may be ‘held-over’ so that any gain is effectively frozen until the recipient eventually disposes of the asset. Hold-over relief is also available on the gift of shares in an unquoted trading company subject to several conditions being met.

Where a qualifying asset is sold at undervalue then only the non-realised part of the gain can be held over. The realised gain (i.e. the difference between the actual sale proceeds and the original cost) is chargeable to CGT immediately.

Gift relief is not available on non-business assets, such as most quoted shares, unquoted shares in investment companies and investment property which is gifted to another individual.

Note that special rules apply where assets are gifted between a husband and wife or civil partners.

Further details can be found in HMRC Help Sheet 295

Replacement of Business Asset Rollover Relief

Where a business asset, such as land & buildings, goodwill or fixed plant & machinery is sold by an individual and replaced by another business asset, the gain can be ‘rolled-over’ against the cost of the replacement effectively freezing the gain.

The total gain arising can only be rolled-over where ALL of the proceeds are reinvested in the cost of the replacement asset. Where the proceeds are only partly reinvested then the shortfall will result in an immediate capital gain.

The relief is available where the ‘replacement’ asset is acquired within a period starting 12 months before and ending 36 months after the disposal of the asset being replaced.

Rollover relief is also available to limited companies on qualifying assets which excludes goodwill.

Incorporation Relief

Where a sole trader or partnership business is transferred to a limited company as a going concern in exchange for shares, any capital gains arising can be held-over until the disposal of the shares.

Where part of the consideration is in the form of cash or loan notes, then a pro-rata part of the capital gains arising will become chargeable immediately, with the balance available for incorporation hold-over.

Incorporation relief is automatic unless an election is made to disapply the relief so that the capital gains become chargeable on incorporation but normally at the special Entrepreneurs’ Relief rate of 10%.

EIS Reinvestment Relief

Where any capital gain is invested in shares qualifying for the Enterprise Investment Scheme (EIS) the gain can be deferred with any CGT only becoming payable when the EIS shares are disposed of.

The relief is not automatic and must be formally claimed. The EIS investment must take place within a four year time period which runs from 12 months before to 36 months after the date the capital gain arose.

Note that an investor may specify an exact amount of reinvestment relief to be claimed, thereby leaving part of the original gain chargeable to CGT. This gain can then effectively be converted into a tax free capital gain by utilising any capital losses and/or annual exemption which happen to be available.