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Self employment: 7 Rookie mistakes

by Kevin Leland, Staff Writer

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1) You think you need an original and brilliant idea

Not the case. Innovations are a nice thing. Having “original art” that will allow you to patent an invention or process is key if you are an inventor, and that is your business. Otherwise it isn’t always necessary to build a better mouse trap. Sometimes all you have to do is build the same old mousetrap better or at least just as good as your fellow mouse trap builder.

2) You consider everyone in the same business as you to be your competition

Not the case. Many of these people know that there is enough work for everyone. They are actually routing for your success. If you hang wallpaper like a slob, then you end up giving all wallpaperers a bad name and cause many potential customers, yours or theirs, to call a painter. Contact these people for advice, you will be surprised at how you will be welcomed to their world.

3) You start out with the “I’ll do it cheaper” philosophy.

Watch how fast you piss off those fellow wallpaperers who would have gladly welcomed you and mentored you if you didn’t set out to be a cut-throat. When you make your debut, and talk to some people in the business, make that the first topic of conversation. Tell them that you don’t want to make the rookie mistake of under charging, so ask them to kindly give you an idea of what the going rates are. Stick by that pricing.

4) You trick your customers into thinking that you have more experience than you actually do

Honesty is always the best policy. Most customers will be turned on by the idea that they are helping you to get your “start.” They will correctly assume that you will give their project extra care and attention because you need the reference. As soon as they see your skill and professional attitude, they will be on the phone with their friends –“Hey, I just found a new guy who…”

5) You think the customer is always right

Not true-Just because this has been said a hundred billion times, it does not make it true. I was definitely guilty of this rookie mistake. After being mentored by a guy who thought that the customer was always wrong, I said to my self “If a customer tells me to hang a toilet on the ceiling, I’ll do it.” Then a customer asked me to hang a toilet on the ceiling. I did it. The first time the toilet seat hit her in the head she threw me off the job, refused to pay me, and threatened to sue. Sometimes as a professional you will have to save the customer from themselves.

6) You think the customer is always wrong

If they could do it better themselves, why would they be calling you? True, but also remember that the customer has probably put a lot of thought and research into their project. Some of my best ideas for design and color choices came from customers who did a lot of leg-work before I even showed up on their scene. Pay attention and don’t shoot down their every thought and idea to make your self out to be the authority.

7) You work under the table

Okay. You don’t have to be a complete boyscout. Even the IRS let’s you make or pay out up to about $500.00 before a 1099 is required. However, I’ve seen some people start off dealing in cash and then never stop. You might think that you are screwing the IRS, but you would be surprised to see how after you crunch the numbers, you are probably actually screwing yourself. Try to get a small business loan or a mortgage without any documented income. Your tax returns are your proof of income when you are self employed. I laugh at some small business hacks that do this and actually miss out on Earned Income Credit –Money the government would have given them in addition to what they earned if only they were honest and claimed it.

About Kevin Leland
I've had a job or a hobby for just about every letter of the alphabet. The many experiences along the way has given me tons of material To write about along the way. Some completely anecdotal, some informational. I like to mix both up with a dash of potty humor.
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Comments & Questions
Charlene Collins  Staff Writer - 90 Factoids | + 372 votes

I have a friend who has a house cleaning business..just big enough to keep her busy. She makes good, but it is all under the table. Her hubby works, so he has the income taxes stuff going on... but I agree.. if she were on her own she would have to have a paper trail to get loans.
posted 11 months ago
Kevin Leland  Staff Writer - 173 Factoids | + 812 votes

When 1000 odd-jobbers evade income tax on $1000.00 each, it's as bad for business and the American economy as when a millionaire hides $1,000,000.00. Tax fraud is mostly unfair to the business people who play by the rules. But never mind ethics...I bet I could show that couple how if she were to legitimize her business, the benefits received would outweigh the costs in income tax. Many times, if people only took a little time to understand taxes, a couple can pay LESS income tax when they claim business income...AND expenses
posted 11 months ago
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