SlideShare ist ein Scribd-Unternehmen logo
1 von 18
Downloaden Sie, um offline zu lesen
Freelance Nation
• The U.S. is increasingly becoming a nation of
permanent freelancers and temporary workers
• An increasing number of employers are addressing
their human capital needs by hiring independent
contractors
• This trend is expected to expand beyond “traditional”
freelance jobs and include accounting, law,
engineering, sales, academia, etc.
U.S. Labor Force Changes
• 40% of America’s workforce (>60 million people) will be
freelancers by 2020: http://qz.com/65279/40-of-americas-workforce-will-
be-freelancers-by-2020/
– About 30% of workforce in 2006
– 29% increase between 2009 and 2012 (BLS)
– Huge and growing sector of American workforce
• [Freelancers, permalancers, contractors, long-term temps,
contingent workers, independent contractors, etc.] number
currently about 42 million: http://news.rutgers.edu/medrel/q-and-a-hot-
topic/hot-topic-is-america-20120402
Reasons For This Change
• Employers avoid hiring and layoff hassles
• Employers avoid payroll taxes and fringe benefits
– Affordable Care Act (ACA) will accelerate this
• Employers learned how to do more with fewer people
• Rapid adoption of mobile technology & Internet access
• Number of people willing to work as independent
contractors is high
– Better than unemployment
– “Encore” careers
– “Moonlighting”
– Avoids commuting
– Can be your own boss
Definition of an
Independent Contractor
“The worker is subject to the direction or control
of another person merely as to the result to be
accomplished by the work and not as to the
means and methods by which the result is
accomplished.”
Journal of Financial Planning (2/13):
http://www.fpanet.org/journal/IndependentContractororEmployee/
Employees vs. Freelancers
Employees
• Business expenses are
miscellaneous itemized
deduction subject to 2% of
adjusted gross income
• FICA tax collected and
matched by employer
• Employer may provide
health insurance and a
retirement savings plan
• Employer provides income
tax withholding
• May receive “sick days”
Freelancers
• Self-employment expenses
are deductible directly
against business income
• Freelancers must pay full
FICA tax (15.3%) themselves
• Freelancers must secure their
own health insurance and
retirement savings plan
• Must do own tax withholding
through estimated quarterly
payments
• No work= no pay
The Influence of Technology
• Consulting Web sites help independent contractors
land “gigs” online with limited time and money
required for self-marketing
• Web sites include:
– odesk.com
– guru.com
– elance.com
– sologig.com
Take the
Entrepreneurship Assessment
• 1-9- Little inclination toward being an entrepreneur
• 10-19- Somewhat inclined toward being an entrepreneur
• 20-29- Inclined toward being an entrepreneur
• 30-40- Very Inclined toward being an entrepreneur
Is Entrepreneurship
For You?
• Are You a Self-Starter? Entrepreneurs must develop
projects, organize time, and follow through on details
• How Good are You at Making Decisions?
Entrepreneurs must make decisions constantly
• How Well so You Get Along With People?
Entrepreneurs must deal with vendors, clients, etc.
• Do You Have Physical and Emotional Stamina?
Entrepreneurship can be a lot of work (e.g., 10-hour days)
• Is Your Drive Strong Enough to Maintain Your
Motivation? Strong motivation can people weather
business slowdowns and burnout
Key Planning Topics
for Entrepreneurs
• Business planning
• Cash flow management on an irregular
income
• Income taxes
• Insurance
• Retirement savings
1. Business Planning
• Defines where a business is going and progress toward
business goals
• Helps “reality test” business goals and make logical
decisions
• Outlines strategies to follow to reach business goals
(e.g., a timeline of benchmarks for action)
• Provides potential lenders and suppliers with data
about the condition and direction of a business
Parts of a Business Plan
• Executive Summary: (appears first but write LAST)
• Business Objectives and Goals: (i.e., success metrics)
• Business Description: (mission, vision, locale, uniqueness)
• Market Analysis and Strategy: (need for business product
or service and planned marketing methods)
• Financial Information: (cash flow projections, balance
sheet, pricing methodology, break-even analysis, marketing
and supply costs, depository institution, contingency fund)
• Management and Organization: (business structure, title
and duties of principal personnel, insurance needs)
2. Irregular Income Cash Flow
• Can’t do a “typical” spending plan (budget)
• Estimate baseline monthly expenses
– Include 1/12 of annual cost of periodic expenses
• Project self-employment income
• Identify “peak” and “lean” months (if applicable)
– If so, save money from peak months for lean months
• Build a substantial emergency fund (6 to 12 months
expenses) to tide yourself over between gigs
– Also consider getting a bank line of credit
3. Income Taxes
• Schedule C (Profit or Loss From Business) or C-EZ
– Beware: “Hobby Loss Rules” (profit in 3 of last 5 years)
• Schedule SE (Self-Employment Tax); > $400 earned
• Home Office Deduction: New IRS rules based on
square footage ($5/sq. ft. up to $1,500); office must
be used “regularly and exclusively” for business
• Quarterly Estimated Tax Payments
– 4/15, 6/15, 9/15, and 1/15 of following year
– Set aside at least 30% of self-employment income for taxes
– Another option: over-withholding on “day job” taxes
– Safe harbor: Amount of tax paid the previous year
• Should get 1099 form for every job paying > $600
4. Health Insurance
• Pay attention to Affordable Care Act implementation
– http://www.healthcare.gov
• Consider a high-deductible policy with a HSA
• Join a professional association or business network
group plan
• Check state’s “group” definition (Dept. of Insurance)
– Some states allow sale of “group of one” policies
5. Retirement Savings Plans
• Simplified Employee Pension (SEP): Easiest
to set up; can contribute up to 20% of net self-
employment income by 4/15 of following year
• IRAs: Up to $5,500 ($6,500 catch-up) in 2013
– Roth and/or Traditional
Entrepreneurship Resource:
Shark Tank
• Product/service niche
• Business planning
• Marketing plans
• Company valuation
• Return on investment
• Intellectual property protection
Business SWOT Analysis
Comments? Questions?
Experiences?
Final Thoughts:
• Look Before You Leap: Is your business idea unique? If
not, what will you do better than others? Do you know the
industry? What are the risks and the reward potential?
• A concept/idea is NOT a business! Think and plan ahead.
Have a vision of what and where you want to be.
• Follow your strengths and weaknesses.
• Entrepreneurship is not a job, it’s a lifestyle.

Weitere ähnliche Inhalte

Ähnlich wie Personal Finance Class Entrepreneurship Lecture Slides 09-13

Entrepreneurship Personal Finances Slides
Entrepreneurship Personal Finances SlidesEntrepreneurship Personal Finances Slides
Entrepreneurship Personal Finances SlidesBarbara O'Neill
 
Entrepreneurship Essentials for Service Members & Military Spouses
Entrepreneurship Essentials for Service Members & Military SpousesEntrepreneurship Essentials for Service Members & Military Spouses
Entrepreneurship Essentials for Service Members & Military Spousesmilfamln
 
Entrepreneurship Essentials Webinar Slides
Entrepreneurship Essentials Webinar SlidesEntrepreneurship Essentials Webinar Slides
Entrepreneurship Essentials Webinar SlidesBarbara O'Neill
 
Healthcare law and your California Small Business - Mark Herbert
Healthcare law and your California Small Business - Mark HerbertHealthcare law and your California Small Business - Mark Herbert
Healthcare law and your California Small Business - Mark Herbertadityaullal1
 
Part 3 running your own business
Part 3 running your own businessPart 3 running your own business
Part 3 running your own businessJoachim Ravoth
 
The Healthcare Law and California Small Businesses
The Healthcare Law and California Small BusinessesThe Healthcare Law and California Small Businesses
The Healthcare Law and California Small BusinessesSmall Business Majority
 
Healthcare Reform: A Practical and Strategic Look at the Impact
Healthcare Reform: A Practical and Strategic Look at the ImpactHealthcare Reform: A Practical and Strategic Look at the Impact
Healthcare Reform: A Practical and Strategic Look at the ImpactSikich LLP
 
Are You Running Your Business Or Is Your
Are You Running Your Business Or Is YourAre You Running Your Business Or Is Your
Are You Running Your Business Or Is YourRtwilbert
 
Key Management Indicators
Key Management IndicatorsKey Management Indicators
Key Management IndicatorsRtwilbert
 
What Women in Agriculture Need to Know About Personal Finance 05-17-purdue
What Women in Agriculture Need to Know About Personal Finance 05-17-purdueWhat Women in Agriculture Need to Know About Personal Finance 05-17-purdue
What Women in Agriculture Need to Know About Personal Finance 05-17-purdueBarbara O'Neill
 
Financial Fitness-Twenty Ways to Get in Shape
Financial Fitness-Twenty Ways to Get in ShapeFinancial Fitness-Twenty Ways to Get in Shape
Financial Fitness-Twenty Ways to Get in ShapeBarbara O'Neill
 
Professional Employer Organization.ppt
Professional Employer Organization.pptProfessional Employer Organization.ppt
Professional Employer Organization.pptssuser5e5e6c
 
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...Irma Miller
 
Strategies for Implementing the New Health Care Reform Law
Strategies for Implementing the New Health Care Reform LawStrategies for Implementing the New Health Care Reform Law
Strategies for Implementing the New Health Care Reform LawOhio Restaurant Association
 
EM 2 (1).pptx at engine of india hhsec o
EM 2 (1).pptx at engine of india hhsec oEM 2 (1).pptx at engine of india hhsec o
EM 2 (1).pptx at engine of india hhsec oakaswini143
 
FIA 1.pptx
FIA 1.pptxFIA 1.pptx
FIA 1.pptxDaveN31
 
Business plan presented by mdshadab sayed
Business plan presented by mdshadab sayedBusiness plan presented by mdshadab sayed
Business plan presented by mdshadab sayedMdshadab Sayed
 

Ähnlich wie Personal Finance Class Entrepreneurship Lecture Slides 09-13 (20)

Entrepreneurship Personal Finances Slides
Entrepreneurship Personal Finances SlidesEntrepreneurship Personal Finances Slides
Entrepreneurship Personal Finances Slides
 
Entrepreneurship Essentials for Service Members & Military Spouses
Entrepreneurship Essentials for Service Members & Military SpousesEntrepreneurship Essentials for Service Members & Military Spouses
Entrepreneurship Essentials for Service Members & Military Spouses
 
Entrepreneurship Essentials Webinar Slides
Entrepreneurship Essentials Webinar SlidesEntrepreneurship Essentials Webinar Slides
Entrepreneurship Essentials Webinar Slides
 
Healthcare law and your California Small Business - Mark Herbert
Healthcare law and your California Small Business - Mark HerbertHealthcare law and your California Small Business - Mark Herbert
Healthcare law and your California Small Business - Mark Herbert
 
Part 3 running your own business
Part 3 running your own businessPart 3 running your own business
Part 3 running your own business
 
The Healthcare Law and California Small Businesses
The Healthcare Law and California Small BusinessesThe Healthcare Law and California Small Businesses
The Healthcare Law and California Small Businesses
 
Healthcare Reform: A Practical and Strategic Look at the Impact
Healthcare Reform: A Practical and Strategic Look at the ImpactHealthcare Reform: A Practical and Strategic Look at the Impact
Healthcare Reform: A Practical and Strategic Look at the Impact
 
Are You Running Your Business Or Is Your
Are You Running Your Business Or Is YourAre You Running Your Business Or Is Your
Are You Running Your Business Or Is Your
 
Key Management Indicators
Key Management IndicatorsKey Management Indicators
Key Management Indicators
 
What Women in Agriculture Need to Know About Personal Finance 05-17-purdue
What Women in Agriculture Need to Know About Personal Finance 05-17-purdueWhat Women in Agriculture Need to Know About Personal Finance 05-17-purdue
What Women in Agriculture Need to Know About Personal Finance 05-17-purdue
 
Financial Fitness-Twenty Ways to Get in Shape
Financial Fitness-Twenty Ways to Get in ShapeFinancial Fitness-Twenty Ways to Get in Shape
Financial Fitness-Twenty Ways to Get in Shape
 
Business plan
Business planBusiness plan
Business plan
 
Unit 4.pptx
Unit 4.pptxUnit 4.pptx
Unit 4.pptx
 
Professional Employer Organization.ppt
Professional Employer Organization.pptProfessional Employer Organization.ppt
Professional Employer Organization.ppt
 
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...
 
2016 ACA Update
2016 ACA Update2016 ACA Update
2016 ACA Update
 
Strategies for Implementing the New Health Care Reform Law
Strategies for Implementing the New Health Care Reform LawStrategies for Implementing the New Health Care Reform Law
Strategies for Implementing the New Health Care Reform Law
 
EM 2 (1).pptx at engine of india hhsec o
EM 2 (1).pptx at engine of india hhsec oEM 2 (1).pptx at engine of india hhsec o
EM 2 (1).pptx at engine of india hhsec o
 
FIA 1.pptx
FIA 1.pptxFIA 1.pptx
FIA 1.pptx
 
Business plan presented by mdshadab sayed
Business plan presented by mdshadab sayedBusiness plan presented by mdshadab sayed
Business plan presented by mdshadab sayed
 

Mehr von Barbara O'Neill

Final Rutgers Syllabus-Fall 2019
Final Rutgers Syllabus-Fall 2019Final Rutgers Syllabus-Fall 2019
Final Rutgers Syllabus-Fall 2019Barbara O'Neill
 
Inflation Causes, Impacts, Mitigation Strategies, and Benefits
 Inflation Causes, Impacts, Mitigation Strategies, and Benefits Inflation Causes, Impacts, Mitigation Strategies, and Benefits
Inflation Causes, Impacts, Mitigation Strategies, and BenefitsBarbara O'Neill
 
Income Tax Issues for Older Adults-02-23-UPDATED.pptx
Income Tax Issues for Older Adults-02-23-UPDATED.pptxIncome Tax Issues for Older Adults-02-23-UPDATED.pptx
Income Tax Issues for Older Adults-02-23-UPDATED.pptxBarbara O'Neill
 
Dr. Barbara O'Neill-Short CV
Dr. Barbara O'Neill-Short CVDr. Barbara O'Neill-Short CV
Dr. Barbara O'Neill-Short CVBarbara O'Neill
 
Inflation Fighting Strategies Class-01-23.pdf
Inflation Fighting Strategies Class-01-23.pdfInflation Fighting Strategies Class-01-23.pdf
Inflation Fighting Strategies Class-01-23.pdfBarbara O'Neill
 
Can Farmers Ever Afford to Retire-01-23.pdf
Can Farmers Ever Afford to Retire-01-23.pdfCan Farmers Ever Afford to Retire-01-23.pdf
Can Farmers Ever Afford to Retire-01-23.pdfBarbara O'Neill
 
Carney Clan Cookie Contest Entries
Carney Clan Cookie Contest Entries Carney Clan Cookie Contest Entries
Carney Clan Cookie Contest Entries Barbara O'Neill
 
RMD Planning Worksheet-12-22.pdf
RMD Planning Worksheet-12-22.pdfRMD Planning Worksheet-12-22.pdf
RMD Planning Worksheet-12-22.pdfBarbara O'Neill
 
2022 Personal Finance Trends-References
2022 Personal Finance Trends-References2022 Personal Finance Trends-References
2022 Personal Finance Trends-ReferencesBarbara O'Neill
 
Income Tax Issues for Older Adults-MTP-02-22.pdf
Income Tax Issues for Older Adults-MTP-02-22.pdfIncome Tax Issues for Older Adults-MTP-02-22.pdf
Income Tax Issues for Older Adults-MTP-02-22.pdfBarbara O'Neill
 
Beyond Legal Documents-12 Planning Strategies-Good Ending-08-22.pdf
Beyond Legal Documents-12 Planning Strategies-Good Ending-08-22.pdfBeyond Legal Documents-12 Planning Strategies-Good Ending-08-22.pdf
Beyond Legal Documents-12 Planning Strategies-Good Ending-08-22.pdfBarbara O'Neill
 
Give Yourself a Financial Check-Up-Older Adult Version
Give Yourself a Financial Check-Up-Older Adult VersionGive Yourself a Financial Check-Up-Older Adult Version
Give Yourself a Financial Check-Up-Older Adult VersionBarbara O'Neill
 
Five Tips to Flip Your Retirement Switch-06-22.pdf
Five Tips to Flip Your Retirement Switch-06-22.pdfFive Tips to Flip Your Retirement Switch-06-22.pdf
Five Tips to Flip Your Retirement Switch-06-22.pdfBarbara O'Neill
 
Leveraging LinkedIn Presentation
Leveraging LinkedIn PresentationLeveraging LinkedIn Presentation
Leveraging LinkedIn PresentationBarbara O'Neill
 
AAFCS 2022 Presentation on Opiods
AAFCS 2022 Presentation on OpiodsAAFCS 2022 Presentation on Opiods
AAFCS 2022 Presentation on OpiodsBarbara O'Neill
 
Digital Assets Inventory Presentation-BMO-04-22.pdf
Digital Assets Inventory Presentation-BMO-04-22.pdfDigital Assets Inventory Presentation-BMO-04-22.pdf
Digital Assets Inventory Presentation-BMO-04-22.pdfBarbara O'Neill
 
Creating Attractive Graphics Presentation-MTP-03-22.pdf
Creating Attractive Graphics Presentation-MTP-03-22.pdfCreating Attractive Graphics Presentation-MTP-03-22.pdf
Creating Attractive Graphics Presentation-MTP-03-22.pdfBarbara O'Neill
 
35 Useful Personal Finance Web Sites
35 Useful Personal Finance Web Sites35 Useful Personal Finance Web Sites
35 Useful Personal Finance Web SitesBarbara O'Neill
 
Social Media 101 Handouts
Social Media 101 HandoutsSocial Media 101 Handouts
Social Media 101 HandoutsBarbara O'Neill
 

Mehr von Barbara O'Neill (20)

Final Rutgers Syllabus-Fall 2019
Final Rutgers Syllabus-Fall 2019Final Rutgers Syllabus-Fall 2019
Final Rutgers Syllabus-Fall 2019
 
Inflation Causes, Impacts, Mitigation Strategies, and Benefits
 Inflation Causes, Impacts, Mitigation Strategies, and Benefits Inflation Causes, Impacts, Mitigation Strategies, and Benefits
Inflation Causes, Impacts, Mitigation Strategies, and Benefits
 
Income Tax Issues for Older Adults-02-23-UPDATED.pptx
Income Tax Issues for Older Adults-02-23-UPDATED.pptxIncome Tax Issues for Older Adults-02-23-UPDATED.pptx
Income Tax Issues for Older Adults-02-23-UPDATED.pptx
 
Dr. Barbara O'Neill-Short CV
Dr. Barbara O'Neill-Short CVDr. Barbara O'Neill-Short CV
Dr. Barbara O'Neill-Short CV
 
Inflation Fighting Strategies Class-01-23.pdf
Inflation Fighting Strategies Class-01-23.pdfInflation Fighting Strategies Class-01-23.pdf
Inflation Fighting Strategies Class-01-23.pdf
 
Can Farmers Ever Afford to Retire-01-23.pdf
Can Farmers Ever Afford to Retire-01-23.pdfCan Farmers Ever Afford to Retire-01-23.pdf
Can Farmers Ever Afford to Retire-01-23.pdf
 
Carney Clan Cookie Contest Entries
Carney Clan Cookie Contest Entries Carney Clan Cookie Contest Entries
Carney Clan Cookie Contest Entries
 
RMD Planning Worksheet-12-22.pdf
RMD Planning Worksheet-12-22.pdfRMD Planning Worksheet-12-22.pdf
RMD Planning Worksheet-12-22.pdf
 
2022 Reference List
2022 Reference List2022 Reference List
2022 Reference List
 
2022 Personal Finance Trends-References
2022 Personal Finance Trends-References2022 Personal Finance Trends-References
2022 Personal Finance Trends-References
 
Income Tax Issues for Older Adults-MTP-02-22.pdf
Income Tax Issues for Older Adults-MTP-02-22.pdfIncome Tax Issues for Older Adults-MTP-02-22.pdf
Income Tax Issues for Older Adults-MTP-02-22.pdf
 
Beyond Legal Documents-12 Planning Strategies-Good Ending-08-22.pdf
Beyond Legal Documents-12 Planning Strategies-Good Ending-08-22.pdfBeyond Legal Documents-12 Planning Strategies-Good Ending-08-22.pdf
Beyond Legal Documents-12 Planning Strategies-Good Ending-08-22.pdf
 
Give Yourself a Financial Check-Up-Older Adult Version
Give Yourself a Financial Check-Up-Older Adult VersionGive Yourself a Financial Check-Up-Older Adult Version
Give Yourself a Financial Check-Up-Older Adult Version
 
Five Tips to Flip Your Retirement Switch-06-22.pdf
Five Tips to Flip Your Retirement Switch-06-22.pdfFive Tips to Flip Your Retirement Switch-06-22.pdf
Five Tips to Flip Your Retirement Switch-06-22.pdf
 
Leveraging LinkedIn Presentation
Leveraging LinkedIn PresentationLeveraging LinkedIn Presentation
Leveraging LinkedIn Presentation
 
AAFCS 2022 Presentation on Opiods
AAFCS 2022 Presentation on OpiodsAAFCS 2022 Presentation on Opiods
AAFCS 2022 Presentation on Opiods
 
Digital Assets Inventory Presentation-BMO-04-22.pdf
Digital Assets Inventory Presentation-BMO-04-22.pdfDigital Assets Inventory Presentation-BMO-04-22.pdf
Digital Assets Inventory Presentation-BMO-04-22.pdf
 
Creating Attractive Graphics Presentation-MTP-03-22.pdf
Creating Attractive Graphics Presentation-MTP-03-22.pdfCreating Attractive Graphics Presentation-MTP-03-22.pdf
Creating Attractive Graphics Presentation-MTP-03-22.pdf
 
35 Useful Personal Finance Web Sites
35 Useful Personal Finance Web Sites35 Useful Personal Finance Web Sites
35 Useful Personal Finance Web Sites
 
Social Media 101 Handouts
Social Media 101 HandoutsSocial Media 101 Handouts
Social Media 101 Handouts
 

Kürzlich hochgeladen

20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdfAdnet Communications
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?Stephen Perrenod
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoCoinGecko
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources PresentationAdnet Communications
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxPrecize Formely Leadoff
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfMichael Silva
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707harshan90
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Guillaume Ⓥ Sarlat
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Commonwealth
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...Antonis Zairis
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Matthews Bantsijang
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingHenry Tapper
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.KumarJayaraman3
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESKumarJayaraman3
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent PreferencesGRAPE
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklosbeduinpower135
 
20240315 _E-Invoicing Digiteal. .pptx
20240315 _E-Invoicing Digiteal.    .pptx20240315 _E-Invoicing Digiteal.    .pptx
20240315 _E-Invoicing Digiteal. .pptxFinTech Belgium
 

Kürzlich hochgeladen (20)

20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation
 
Effects & Policies Of Bank Consolidation
Effects & Policies Of Bank ConsolidationEffects & Policies Of Bank Consolidation
Effects & Policies Of Bank Consolidation
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptx
 
Stock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdfStock Market Brief Deck for March 19 2024.pdf
Stock Market Brief Deck for March 19 2024.pdf
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024
 
Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]Monthly Market Risk Update: March 2024 [SlideShare]
Monthly Market Risk Update: March 2024 [SlideShare]
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB funding
 
Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent Preferences
 
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklos
 
20240315 _E-Invoicing Digiteal. .pptx
20240315 _E-Invoicing Digiteal.    .pptx20240315 _E-Invoicing Digiteal.    .pptx
20240315 _E-Invoicing Digiteal. .pptx
 

Personal Finance Class Entrepreneurship Lecture Slides 09-13

  • 1. Freelance Nation • The U.S. is increasingly becoming a nation of permanent freelancers and temporary workers • An increasing number of employers are addressing their human capital needs by hiring independent contractors • This trend is expected to expand beyond “traditional” freelance jobs and include accounting, law, engineering, sales, academia, etc.
  • 2. U.S. Labor Force Changes • 40% of America’s workforce (>60 million people) will be freelancers by 2020: http://qz.com/65279/40-of-americas-workforce-will- be-freelancers-by-2020/ – About 30% of workforce in 2006 – 29% increase between 2009 and 2012 (BLS) – Huge and growing sector of American workforce • [Freelancers, permalancers, contractors, long-term temps, contingent workers, independent contractors, etc.] number currently about 42 million: http://news.rutgers.edu/medrel/q-and-a-hot- topic/hot-topic-is-america-20120402
  • 3. Reasons For This Change • Employers avoid hiring and layoff hassles • Employers avoid payroll taxes and fringe benefits – Affordable Care Act (ACA) will accelerate this • Employers learned how to do more with fewer people • Rapid adoption of mobile technology & Internet access • Number of people willing to work as independent contractors is high – Better than unemployment – “Encore” careers – “Moonlighting” – Avoids commuting – Can be your own boss
  • 4. Definition of an Independent Contractor “The worker is subject to the direction or control of another person merely as to the result to be accomplished by the work and not as to the means and methods by which the result is accomplished.” Journal of Financial Planning (2/13): http://www.fpanet.org/journal/IndependentContractororEmployee/
  • 5. Employees vs. Freelancers Employees • Business expenses are miscellaneous itemized deduction subject to 2% of adjusted gross income • FICA tax collected and matched by employer • Employer may provide health insurance and a retirement savings plan • Employer provides income tax withholding • May receive “sick days” Freelancers • Self-employment expenses are deductible directly against business income • Freelancers must pay full FICA tax (15.3%) themselves • Freelancers must secure their own health insurance and retirement savings plan • Must do own tax withholding through estimated quarterly payments • No work= no pay
  • 6. The Influence of Technology • Consulting Web sites help independent contractors land “gigs” online with limited time and money required for self-marketing • Web sites include: – odesk.com – guru.com – elance.com – sologig.com
  • 7. Take the Entrepreneurship Assessment • 1-9- Little inclination toward being an entrepreneur • 10-19- Somewhat inclined toward being an entrepreneur • 20-29- Inclined toward being an entrepreneur • 30-40- Very Inclined toward being an entrepreneur
  • 8. Is Entrepreneurship For You? • Are You a Self-Starter? Entrepreneurs must develop projects, organize time, and follow through on details • How Good are You at Making Decisions? Entrepreneurs must make decisions constantly • How Well so You Get Along With People? Entrepreneurs must deal with vendors, clients, etc. • Do You Have Physical and Emotional Stamina? Entrepreneurship can be a lot of work (e.g., 10-hour days) • Is Your Drive Strong Enough to Maintain Your Motivation? Strong motivation can people weather business slowdowns and burnout
  • 9. Key Planning Topics for Entrepreneurs • Business planning • Cash flow management on an irregular income • Income taxes • Insurance • Retirement savings
  • 10. 1. Business Planning • Defines where a business is going and progress toward business goals • Helps “reality test” business goals and make logical decisions • Outlines strategies to follow to reach business goals (e.g., a timeline of benchmarks for action) • Provides potential lenders and suppliers with data about the condition and direction of a business
  • 11. Parts of a Business Plan • Executive Summary: (appears first but write LAST) • Business Objectives and Goals: (i.e., success metrics) • Business Description: (mission, vision, locale, uniqueness) • Market Analysis and Strategy: (need for business product or service and planned marketing methods) • Financial Information: (cash flow projections, balance sheet, pricing methodology, break-even analysis, marketing and supply costs, depository institution, contingency fund) • Management and Organization: (business structure, title and duties of principal personnel, insurance needs)
  • 12. 2. Irregular Income Cash Flow • Can’t do a “typical” spending plan (budget) • Estimate baseline monthly expenses – Include 1/12 of annual cost of periodic expenses • Project self-employment income • Identify “peak” and “lean” months (if applicable) – If so, save money from peak months for lean months • Build a substantial emergency fund (6 to 12 months expenses) to tide yourself over between gigs – Also consider getting a bank line of credit
  • 13. 3. Income Taxes • Schedule C (Profit or Loss From Business) or C-EZ – Beware: “Hobby Loss Rules” (profit in 3 of last 5 years) • Schedule SE (Self-Employment Tax); > $400 earned • Home Office Deduction: New IRS rules based on square footage ($5/sq. ft. up to $1,500); office must be used “regularly and exclusively” for business • Quarterly Estimated Tax Payments – 4/15, 6/15, 9/15, and 1/15 of following year – Set aside at least 30% of self-employment income for taxes – Another option: over-withholding on “day job” taxes – Safe harbor: Amount of tax paid the previous year • Should get 1099 form for every job paying > $600
  • 14. 4. Health Insurance • Pay attention to Affordable Care Act implementation – http://www.healthcare.gov • Consider a high-deductible policy with a HSA • Join a professional association or business network group plan • Check state’s “group” definition (Dept. of Insurance) – Some states allow sale of “group of one” policies
  • 15. 5. Retirement Savings Plans • Simplified Employee Pension (SEP): Easiest to set up; can contribute up to 20% of net self- employment income by 4/15 of following year • IRAs: Up to $5,500 ($6,500 catch-up) in 2013 – Roth and/or Traditional
  • 16. Entrepreneurship Resource: Shark Tank • Product/service niche • Business planning • Marketing plans • Company valuation • Return on investment • Intellectual property protection
  • 18. Comments? Questions? Experiences? Final Thoughts: • Look Before You Leap: Is your business idea unique? If not, what will you do better than others? Do you know the industry? What are the risks and the reward potential? • A concept/idea is NOT a business! Think and plan ahead. Have a vision of what and where you want to be. • Follow your strengths and weaknesses. • Entrepreneurship is not a job, it’s a lifestyle.