The good news is, the longer your business is operational, the more likely you are to survive. According to the Bureau of Labor Statistics, if a company makes it to the five-year mark, they are 50 percent more likely to succeed. As Phil Bienert, the CMO of GoDaddy describes, many entrepreneurs create a business when they are full of optimism, only to be hit with realities such as:

• Managing cash flow
• Balancing work life and personal life
• Finding new business

He continues to say that, at some point, entrepreneurs will all face a point where they want to give up. Bienert suggests that entrepreneurs remind themselves that all successful business owners have themselves been at this low point. He also advises business owners to remember that their work is beneficial and that their vision has a purpose.

No matter if you’re a young business owner who is worried about the time requirements needed to start a company or an entrepreneur who is finding yourself burnt out, you should consider the tips we’ve provided below. These tips can help you avoid burnout and continually seek motivation to push through tough times, allowing you to dedicate yourself to your business entirely.  

Set Personal Goals

When they start a business, many entrepreneurs set goals for the company. However, they forget to set goals for themselves. As a result, many young business owners lose their identity during the process of creating a company, forgetting their purpose as an entrepreneur. Although your business goals and personal goals may be intertwined, it’s imperative that you set personal goals that are realistic and achievable.

It’s also crucial that you hold yourself to these goals. Keep them in a place that is handy and convenient, such as a piece of paper in your wallet or as a note on your phone. When you are beginning to feel burnt out or not wanting to seek motivation, look at the goals as a source of inspiration. Doing so could help remind you why you became an entrepreneur and why you should keep pushing through.

Find a Routine That Promotes Work-Life Balance

Too often, entrepreneurs become burnt out because they spend too much time focused on their business, not giving themselves enough “me” time. Successful entrepreneurs are ones who can learn to cope with stress and know when to step away from their business. Additionally, many young business owners forget that physical health can impact mental health significantly. For example, did you know there is a strong correlation between heart disease and depression?

Entrepreneurs should take the time to carve out a schedule that allows them to maintain their physical health. They should have time to eat well and exercise regularly. Additionally, entrepreneurs should have personal time as well. If you have a family, make time for them. If you have a hobby that you love or you enjoy volunteering, make time for that as well.

To hold yourself accountable to this routine, you should write it down. Force yourself to adhere to the schedule. After a few weeks, what once seemed foreign will become the new norm. By scheduling breaks from work throughout the day, you’ll keep a clear mind, which could help make you a more motivated and productive worker upon returning to the given tasks at hand.

Set Aside Time for Motivational Activities

You won’t find motivation if you are sucked into your work throughout the day. Try to set aside time – perhaps once a week – to seek motivation. There are numerous ways in which you could do so. Some business owners find watching TED talks to be uplifting and inspiring. Others spend their time watching motivational movies or listening to podcasts. You could spend time at a scenic viewpoint, listening to your favorite music.

No matter how you choose to go about doing so, finding continual sources of motivation could be particularly beneficial. There’s a good chance that you’ll begin looking forward to this time of the week. Your mindset will start to change, and you’ll find yourself thinking more positively. This could not only make your business more successful but could also have a positive impact on those with who you work.

Get Enough Rest

More and more studies are now showing just how critical it is that we get 7 – 9 hours of sleep per night. Unfortunately, many entrepreneurs get sucked into work-related activities, which can keep them up into the wee hours of the morning or force them to wake up earlier than expected. Although these business owners feel as though they are helping the company, they are likely doing more harm than good.

That’s because a lack of sleep can hinder our concentration and motivational levels significantly. When you do not receive proper rest, you do not work efficiently. This could cause you to become frustrated, as you feel as though you’re working hard but doing nothing more than grinding your gears, barely making any progress. Dedicate yourself to obtaining eight hours of sleep per night, and watch how fresher you feel the next day.

Reward Yourself

When you achieve a goal, whether it be a personal goal or a company goal, treat yourself! This is an excellent way for staying motivated, especially when working for yourself. Rewarding yourself will only encourage you to work harder in the future. Rewards could be as small as organizing a night out with friends or could be as large as taking the week-long vacation you’ve always wanted.

Furthermore, you can help recruit your friends, family, and loved ones to help hold you accountable as well. You can share your goals and anticipated rewards with them. They can help keep you on track and motivated to accomplish the tasks necessary to get the job done.  

The post Entrepreneur’s Guide to Staying Motivated appeared first on DoMyLLC.com.

Protect Yourself From Liabilities

As an independent contractor, you expose yourself to tremendous liability. Clients would be able to go after all of your assets if something were to go wrong with a deal, including those not related to your day-to-day contracting obligations. This includes things such as your:

• Savings account
• Personal vehicle
• Home

However, working under the LLC umbrella practically eliminates this. That’s because the business organization is responsible for its own debts and liabilities, even if you are the sole owner and only employee. This, in turn, protects your personal assets were anything to go wrong with a contract. Were your business to have debts, the clients typically cannot come after your personal assets.

Simplify Taxes

One of the most significant benefits that self-employed contractors can gain when forming an LLC is the fact that their taxes will become much more straightforward. LLCs offer pass-through taxation. This means that the owner can claim anything the company earns on their personal income statements. LLC owners won’t have to worry about double taxation, as they would with a C corporation.

So, owners will end up protecting themselves from liabilities without having to give up any income. And, taxes become easier to file because LLC owners merely report a profit or loss on a Schedule C, which they attach to their personal income returns. The Internal Revenue Service, for tax purposes, views LLCs just as they do general partnerships and sole proprietorships.

Additionally, LLC owners can opt to be taxed as an S-Corporation, which would allow them to reduce their self-employment tax. Depending on how much money you earn as an independent contractor, this could be in your best financial interest. We strongly advise you to seek out a trusted account or similar financial professional who can advise you on the tax implications of registering as an LLC.

Credibility

Forming an LLC demonstrates to clients that you are professional and that you take your work quite seriously. Think about how much better it looks if a customer were to call, say, “John Doe’s Content Marketing LLC” as opposed to “John Doe.” This is especially true when the LLC could direct the client on how to wire money to their business account. The bottom line is that other companies will take you more seriously if you form an LLC.

Open A Business Bank Account

Registering as an LLC also allows self-employed contractors to open a business banking account. Currently, you may find it easy to keep track of employment funds. Perhaps you’ve allocated a personal credit card and account strictly toward self-employment income. If so, this is excellent, as you’re already on the right track.  

However, if your business were ever to grow, it would be difficult to add a non-family member to this account. A business bank account allows you to do so. It also allows you to track everything much easier. No longer will you forget small expenses or miscalculate income. With a business banking account and credit card, you’ll have a detailed financial report at the end of the year of all business income and expenses.

We’ve spoken with many self-employed contractors who said that before creating an LLC, they did not put much time into running cash flow statements or similar financial analysis. But once they started a company and opened a business bank account, they found it much easier to calculate figures such as their profit margin.

Also, remember that the IRS can audit you at any time. With a dedicated business bank account, it’s significantly easier to go back and track your financial history during a given year. This becomes much more challenging if you’re using a personal bank account for your business funds.

You Can Accept New Forms Of Payment

One of the other significant financial perks to opening a business bank account upon forming an LLC is the fact that you can accept new forms of payment. For instance, you can allow clients to pay with a credit card. They could also wire the funds to your business account directly. Some corporations have regulations about wiring money to a personal bank account, which is why this would be nearly impossible if an independent contractor chose not to create an LLC.  

You Could Gain New Clients

Lastly, 1099 contractors could want to form an LLC because it could put them in touch with new possible clients. Unfortunately, many companies have grown weary over the past couple of years of using 1099 contractors. This is primarily because the IRS has caught companies using the 1099 designation to skirt employment requirements, such as FICA taxes and health insurance. Now, many companies have said they won’t work 1099 contractors as a result.

Allow Someone To Handle Your Administrative Needs

When forming an LLC, one of the requirements is that you designate a registered agent to serve on the company’s behalf. The agent receives all legal correspondence on behalf of this company. Registered agents could prove to be integral to a company’s success. Hiring a quality registered agent could allow you to focus strictly on business dealings, instead of having to worry about tracking down relevant forms and information.

The post Why Independent Contractors May Consider Forming an LLC appeared first on DoMyLLC.com.