Archive for the 'Business' Category

Passive Income

Friday, March 17th, 2006

People that have jobs or businesses that provide services are cuckoo, cuckoo for crazy puffs.

I was talking to my barber the other week about his recent vacation. He told me that he doesn’t even like taking one. After working as a barber for 20+ years he has found that if he takes a week off, people just wait a week to get their haircut. He knows that any time off means that he will have twice as much work when he comes back.

While I realize that not all service jobs are as literal as this… cutting a head of hair and getting 10 bucks, it is fair to generalize that service jobs do take more direct work or at least management than other jobs.

I love the concept of creating something once and re-selling it multiple times. Microsoft has made billions of boatloads of cash using this model. 37 Signals is a more recent, less evil example of a company that uses this model and applies it over the web. That same analogy also could be made in the publishing arena. With books representing Microsoft and blogs representing 37 Signals.

Right now we all have a tremendous opportunity to create, sell, distribute original ideas and products that have the potential to make us each our own personal boatload of bucks.

So come on kids, stop cutting hair and lets go make an AJAX cookbook.

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Incorporating

Thursday, March 16th, 2006

I spoke with a lawyer (who is a family friend) the other day about incorporating a parent company for all my business ideas.

She summed up the reasons for incorporating in two ways:

1. The first reason is for liability. For example, if you ran a day-care business, as a corporation, your personal assets would be protected if your business ever got sued.

This first reason doesn’t apply to any of my online ventures. I can’t imagine a scenario where I could get sued. Plus I don’t really have enough assets (yet) that need protecting :) If you want my old car or the home I own 1% on, come and get em.

2. The second reason is for tax/financial purposes. Corporations have ways of doing sneaky things with money to decrease their tax burden. The lawyer I talked to recommended that I talk to a financial advisor/tax person to go over the benefits to incorporating. Sadly she didn’t help me with any of the sneaky things. And no, the phrase “sneaky things” was not the expression she used.

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