You’ve come up with the best idea since sliced bread, figured out a business name and formed a corporation. There is, however, one small problem. You need money. Welcome to the world of investing.

Business Funds

Unless Bill Gates is your friend, money is going to be a problem for every new business. Even the might Google had to hunt for cash with one of the founders of Sun Microsystems finally kicking down a much needed $100,000. Whether you decide to pimp your business plan to anyone breathing or beg your step-mother for funds, here are some issues to consider.

Investors are looking for the best deal, to wit, the most stock possible in an entity. If you are asking them for cash, they have the leverage. Don’t be so desperate that you give away the farm. All to often, I speak with individuals who started a business on a whim and have become disillusioned because they have lost equity in the business.

Assume I start a corporation and need funds. My neighbor agrees to kick in $20,000 for 20% of the stock. Things go great, but four months later I need another $50,000 for inventory and cash flow. My aunt agrees to kick in $50,000 for another 20% of the stock. Yikes, I am not even through the first year and I have given up 40% of the equity!

What happens in year two when I need a $100,000? I give up more stock and suddenly own less than 50% of the business. Inevitably,

Why communication through body language and
appropriate language are crucial to
networking success?

I know most people take quick note of someone that has an attitude. By that we mean that they look belligerent, like know-it-alls, and their ego hangs out like a sore thumb. This is not the person you generally want to do business with. That goes for language as well: you do not want to hang with someone that is negative, always plays the victim and always is whining about one thing or another. The fact that body language can work for you if you take time to listen to others is really important. The act of listening changes your body language almost immediately.

So that you can understand what the other person is saying, you change from aggressive mode to passive mode. This type of body language makes others receptive to you, and they will want to tell their story to you. However, when others want to tell their story, it is important that you gently nudge them in the right direction. You want them to tell you about their business pain, or what is not right with their company. It is through analyzing what they are saying that you will gain bigger insights as to what needs to be remedied, how you can help them with that part of their business. After all, you are at the event to pick up solid leads that will give you both profit and relationships that will last for quite some time.

What

It’s a moment every person dreads. You pick up the mail and there is an envelope from the IRS. It’s not a refund check. What do you do?

Don’t Panic

Each year, the IRS sends out millions of “correspondence audits” to taxpayers to request payment of taxes, notify them of a change to their account or request additional information. These audits normally cover a very specific issue, often notifying you of additional small amounts of income for which you owe tax. Each letter and notice provides specific instructions explaining what you should do if action is necessary to satisfy the inquiry.

Most correspondence can be handled without calling or visiting the IRS. You simply follow the instructions in the letter and the matter is put to rest. Alternatively, you can contact the IRS to contest the matter. Simply call the telephone number indicated on the letter or write an explanation as to why you disagree. Make sure to include copies of any supporting documentation you want considered by the IRS. Typically, it will take the IRS between one and two months to respond. During the first quarter of the year, it can take two to three months.

Sometimes, the IRS sends a second letter or notice requesting additional information or providing additional information to you. Be sure to keep copies of any correspondence with your records. The IRS has been known to lose track of actions involving a taxpayer’s account.

Worse Case Scenario

Everybody has a few really bad days in his or her life. You