Helping With The Business Side Of Direct Sales
One thing is for certain when it comes to your wife’s direct sales business: she is in fact running a business.
That means she’s going to have a lot of “business” stuff to have to deal with. Business expenses. Business Income. Write-offs. Strategic decisions. Maybe even employees. All of this stuff is important because if you don’t pay close attention to it all, her business is going to fail. Even if the business is successful, it may not be as successful as it would be if all these things were solidly under control.
As a supportive direct sales husband, there are advantages to you helping out with this portion of her business. First, it frees her up to do parties. Let’s face it, you can’t do parties, so this is an area you can help. Second, if your wife is like mine, this is a part of the business she hates doing. It may not be her strength. Maybe organization isn’t her strong suit. No matter the reason, it’s still something that needs to get done. Third, having an extra pair of eyes on the business side of things will save the business money (and make your family more money) and or save on taxes over time.
Simple Business Principles You Must Follow to Thrive
Keep an account of all of the business’ income.
This includes income from the company and payments made by hostesses/clients/customers. In Holley’s business, she will often take payments from multiple individuals at a party. Sometimes cash, checks, or credit card information (which goes directly to Thirty-One). She deposits that income and pays for the party out of her own business account.
Keep an account of all of the business’ expenses.
This includes product used for display, incentives for customers and recruits, travel expenses, training and education, business supplies, depreciable items.
Create a system that makes sense to you and is reliable.
Anybody can create the “best system in the world” but if it doesn’t work for you, then you’re not going to use it.
Do not wait until the end of the year to think about taxes.
Taxes are a pain in the butt, no doubt about it. But they are MORE of a pain if you are scrambling at the end of the year trying to round up all of your business expenses, receipts, deductions and the like. Not only should you be thinking about taxes throughout the year, but you need to think about them strategically. The best accountants aren’t really there to prepare your taxes, they’re there to talk about tax strategy for your business. Don’t miss a big deduction because you forgot about it or because you didn’t even know you could deduct the item.
Separate your business and person “life” as much as you can.
This is hugely important if you ever get audited. Make sure you have a business bank account with debit card access and/or checks. Make your business phone a business account. Keep your office portion of your house for business stuff only. Keep your personal use of business items to a minimum. Do the same thing with everything you can.
These are basic concepts. Maybe I should do more detailed posts on some of this stuff. The more I think about it, the more I think I definitely will do a post about taxes. But the real “moral of this story” is that the business is something that you, as a team, need to be in control of the business and every aspect of it. Know your income. Know your expenses. Know your taxes are paid. Don’t fall to the habit of cramming all the business management into a 2-week period before April 15th every year.
If your wife hates this stuff, then it’ll be easy for you to help her with it. You can figure out a system that works for the two of you. Let her give you the checks and cash so you can create a spreadsheet of who has already paid for their items and who needs to be contacted/reminded for payment. Try to keep the business’ books reconciled for each quarter or each month. Same with expenses, receipts, deductions, equipment purchases. Create some sort of catalog for this stuff.
Personally, I think it’s a great way to help her business thrive! Make sure you include her in as much as possible. She needs to know how to do everything you are doing in the business in case something happens and you can’t do it for her.
Girls: Do you wish he’d help more with this part of your business?
Guys: Do you think you could seriously help with the management of the business just by getting involved? How organized is your wife at the business side of direct sales?