Want to
Really "Escape"? -Start Your Own Tax Free Small Business
by John Schroder
There are
a number of you out there that are "fed up", and you are not alone.
Perhaps you are tired of paying more and more each year in taxes, and getting
no real value or benefit in return. Perhaps you just want to get
out of the "rat race". Maybe you just want to get ahead financially,
live the kind of life you thought you would have, and realize where you
are now or what you are doing now is not getting you where you need to
go. Well, here are some thoughts or ideas to consider.
This is not
a "get rich quick scheme" but it is about an idea that is proven
based on some of our client's own success stories(we have one client that
grosses over US$ 100,000 per month-and that's no lie).
It is a business
idea that requires quite a bit of work and effort on your part, but relatively
little capital or start up costs. It is the only business that offers real
"freedom".
I receive an
incredible number of inquires from people asking about a beach bar or other
kind of business in the Caribbean. It sounds romantic and exciting, doesn't
it? Well, it can be done and some people have in fact taken action
on their dreams, but such a business does require a substantial investment
to "get going".
This article
is not about that. It is about "thinking outside the box"
and defining what really is the perfect small business for the expatriate
(or those desiring to be).
Let us then
define then what the perfect business would be. In my opinion, the
perfect business is portable. That is to say a business that can
be operated from any location at any time. A business that does not
"tie
you down" to one location, or "tie you in" to the success
(or
lack of) the local economy where you are living.
The perfect
business also is one that can be started (and operated) with a minimum
of expenses, and one that allows for a tax free business income (I will
tell you on page two of this article how and why you need to set up the
business properly in order to take advantage of this). After
all, one of your largest "expenses" is income tax whether your realize
it or not. What is the point of working 12 hours a day to get your own
business up and running, when the government is in the position to take
up to 60% percent of it? (These are the income tax rates in Canada &
Europe - and the US is not too far behind). The perfect business is
also one that allows you to live where ever in the world that you want,
taking advantage of lower housing costs and better lifesyles.
What I am
talking about is a "virtual business" or Internet based business.
Not the multi-level
marketing get rich quick "come-ons" you get in your email inbox
once a month, but a legitimate and genuine business you might start in
a physical store in your own town or city had you the money to do so. The
only difference with this is your "store" or business is on-line,
is
open 24 hours every day, and is fairly inexpensive to both set up and
operate. I am not going to sugar coat this by telling you that it is easy.
It's a lot of work, like anything else. But it can be done. It can also
be operated from Los Angeles, Peru, Mexico, Bali, Thailand, Paris, Moscow,
Pocatello-Idaho, or any place else you want to be. Plus it can be operated
in or from a country whereby you do not know the language too well, or
where it may be difficult finding a job. It also allows you to enjoy
the option of living a heck of a lot better on just a relatively small
monthly profit (you can live well in Ecuador, Panama, the Dominican
Republic and a number of other places on $ 2000 per month or less!).
I know what
you are thinking, "Yeah, it sounds wonderful, but what exactly would
I do"? OK, here are some practical ideas for you. Either
find a product that people currently buy now and look for a less expensive
"foreign"
manufacturer,
or create a service where none exists at the moment.
For example,
there are people in the US that like to ride horses for a pastime. They
often pay up to US$ 1,000 for a good saddle from their local "riding
shop".
If you take
a drive up to the Penonome or Chitre farmer's market in Panama, you can
find hand made leather horse saddles for US$ 50. The more detailed and
fancy rhinestone covered ones sell for maybe US$ 125 or so. Take out your
calculator and do the math.
You can offer
a quality product that people currently buy, all for a lower cost than
what they are paying now at a "physical store".
You don't like
horses? How do you feel about jewelry? You can find turquoise
or coral jewelry, and other unique one of a kind hand made products just
by shopping around in Mexico, Peru, and other places.
Small quality
hand made items, which are fairly inexpensive, are hard to find in North
American, and are easy to ship. Maybe you will pay up to $ 2 or $ 3 for
each, maybe even less. You can offer these items to your customers for
US$ 12 or $15.
You probably
have purchased "imitation gold" costume jewelry for these kind or
prices already. Offer something handmade, unique and different for the
same price. If the idea of a mail order business does not appeal
to you, how about a service business? What do you already know
how to do, or like to do? well, if you like dealing with the general
public on a "one on one"
basis, start a tour or travel reservation
company. Don't talk to the large hotel chains. They have big budgets,
marketing departments already set up, and probably have no interest in
you. Instead, talk to the small bed & breakfast owners or smaller
hotels.
Many are most
likely very inexpensive, clean, well run, and unheard of. Many of
these owners may not speak English, may know nothing about the Internet
or brochures, and may not know how to "advertise" to potential guests
from your home country. But you do, and you know what the citizens
from your own country like. Help them out, help yourself out, and give
your customers a way to book a room or plan a unique vacation all through
one source - you. How about a program where a couple or family gets
to stay with another family in a foreign country for a week? This may
not appeal to everyone. But there may be people out there that would like
to experience another country not as the typical tourist staying in a resort
or hotel, but rather as a guest of a local family. You can set this up,
and have a good business income in the process.
The key
to all this is to get you thinking not about a job, but rather about
a business. A business that you can never be fired from after ten
years of service, and one that is not necessarily tied in to where you
currently are living. Hopefully this article has got your brain working
on some ideas, but just as important as the idea is how you mechanically
set it up. Go to page two of this article, which will explain how you can
set your business in motion so your income can be enjoyed tax free from
where ever you decide to live.
