Paying Tax's on self employment.

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Permalink Reply by Scott Sandland on August 3, 2011 at 1:22pm

This is a really important question.  I've heard from a lot of hypnotists who aren't making ends meet.

 

I pay taxes and make a good living only seeing clients, enough that I can travel a couple times a year, have a nice car, invest and save, etc.

 

It wasn't always like that though, not by a long shot.  For a few years I lost money, and my accountant helped me look at things like a business balance my books properly.

 

In fact, this is such a good question I'm considering making it into an anonymous survey that people can take so we can all honestly say how well we are doing without a stigma attached to it.

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Permalink Reply by VelvetMallet on August 3, 2011 at 5:18pm

Thanks to the OP for posting this direct question. It is exactly the sort of thing I've always wondered about.  I have made similar queries and always got the rosy, optimistic though somewhat artfully vague response. I would be very interested in anything else anyone can share regarding this topic.

David Eagle

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Permalink Reply by Karen on August 3, 2011 at 6:06pm

Scott:   I think that is a wonderful idea and you are such an inspiration.  I hope someday I am as successful as you.

 

James:  Great post and I have been wondered the same thing.  Thanks for asking.

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Permalink Reply by Richard Nongard - NLPBoard.com on August 3, 2011 at 6:24pm

the heart of this question is not how much do hypnosits make, but "doesn't the government take too much of my money?"   

Depending in the state, they are taking 1/3 to 1/2 of your money.   You work to earn a dollar, they take at least 30 cents....   At what point in Amerca did we decide it was moral to take half a workman's wages to pay for something else.  

I am shocked we don;t have riots in the streets.   But the "payroll tax" keeps people only looking at one final number, and the tax refund (which often funds people who paid no taxes- a redistribution of wealth) is not even questioned on moral principles.....

The biggest problem here is not, "can a hypnotist make enough money?"   but the better question, "When will to government stop spending my money so I decide what to do with it.....?"

 

Time to STOP voting incumbents of both parties.   There MUST be a new solution but the sheeples will continue to vote the same.....   rather than www.lp.com  or Ron Paul.     

 

Hypnosis, and salaries of hypnotists are not really the issue.  The OP   nailed it when he pointed out the pirates take your bounty and don't leave you enough crumbs.....

 

 

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Permalink Reply by Alonzo Cavazos, Ed.D., LCSW, LPC on August 3, 2011 at 6:49pm

James:

Good question!  Unless Scott or someone else does a large non-random survey, we will probably only hear from a few who haven't done well and a few who do well regardless of tax rates, economic cycles, bear markets.

I'm fortunate in that I only do part-time counseling/hypnosis, and I have a "day job" which pays essential bills.  As my goal is to transition into full-time practice after retirement, I'm interested in this discussion.

Again, thanks for the post!

Alonzo

 

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Permalink Reply by Scott Sandland on August 3, 2011 at 8:32pm

That's an encouraging quick response.

Do people want me to build an anonymous survey on the subject? Would you send a link to your colleagues, peers, and classmates so we can get enough answers to make it useful?

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Permalink Reply by Roger Moore on August 3, 2011 at 9:25pm

Yes - I think that it is an excellent idea.

Scott Sandland said:

That's an encouraging quick response.

Do people want me to build an anonymous survey on the subject? Would you send a link to your colleagues, peers, and classmates so we can get enough answers to make it useful?

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Permalink Reply by Marc Carlin on August 4, 2011 at 3:49am

In order to make a living as a self employed person that person needs to learn how to market their product and themselves.

I have met and heard from many hypnotists and therapists who think that marketing is beneath them.  They look down on marketing or promotion of any kind. And that is unfortunate.  I have also met professionals in this business who think there is a limited number of clients and when their fellow hypnotist markets themselves they feel that they are taking business away from them.  How absurd!  Any promotion of hypnosis benefits every hypnotist.

What I have found is that most of our clients are waiting for someone to suggest a hypnotist for them to see, rather than actively seeking out help.  And of course there are those actively seeking help, and they are enough to satisfy the needs of all the hypnotists available to help them, but that other segment is so much greater!

Being able to have a system in place that you can rely upon to generate income for your business is the key to running a successful business.  And it doesn't matter what type of business that is.

If you know that if you spend X amount of dollars and can receive X amount of income you can proceed accordingly.  So finding a reliable way of generating new business and adhering to a schedule that can be flexible depending upon your workload is important.

I have made a full time living out of hypnosis for over 6 years.  I have had marketing channels dry up and become obsolete and I am always seeking out new ways to fill the marketing funnel.  There can be an extraordinary amount of money in this profession, but it truly depends upon what market you want to service and what you think you are worth.  I have had wild swings in income month to month, and am always looking for ways to make that income more consistent.  During the down times in our economy we do have to focus more on marketing.

I've been self employed my entire adult life.  This business is the best one I've ever been involved with for quite a number of reasons.  And one of the most important reasons is it is extremely emotionally and spiritually gratifying.

 I have spent thousands of dollars in training to keep myself updated on hypnotic processes and an equal if not greater amount on learning how to market my business.  Any business person who neglects to focus a set amount of resources on marketing their business will eventually fail.

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Permalink Reply by Karen on August 4, 2011 at 6:07am

Scott:  I think that there are many of us that would be interested in your survey.  Also you mentioned that it took you a few years to get your practice up and running successfully.  Do you mind elaborating on this as far as what you did and if you started again is there anything that you wouldn't do?

 

Marc:  I so agree with you and am surprised to hear when people don't market themselves....how do they expect anyone to know they are there?   Do you mind sharing any of the marketing that you did that were successful and anything you would not do again?  

 

Thank you both ahead of time as I am sure many people on this board will benefit from your guys experience.

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Permalink Reply by Kelly Netterville on August 4, 2011 at 6:09am

I completely agree with Richard's statements. Of course, I'm a bit of a radical in that regard by normal standards today in this country (I mean, I support the FairTax for goodness sake). 

 

For a bit of a shocker, checkout http://www.usdebtclock.org. Out of 311 million U.S. population only 111 million pay taxes.

 

However, my own issues with our current tax code notwithstanding, I would also be interested in the results of a poll as I do intend to move towards self-employment in this profession in the future (25 years of working for someone else is approaching my limit).

 

Kelly

 

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Permalink Reply by docregal.com on August 4, 2011 at 6:17am

Like any entrepreneurial adventure, it takes about three years of hard work to get ahead and five years to sit pretty. Year number two typically breaks even after catching up on year one. Slow and steady progress is what it takes to build a strong business and develop a reputation, thereafter all can go very well. Either you are excelling or not by year three. That is why the IRS typically looks at 2 out of 5 years as being profitable or not. :-)

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Permalink Reply by James Faulkner on August 4, 2011 at 2:02pm

Thank you for such a good response and once again some very useful advice. I think that is an excellent idea of Scotts to do a survey on the subject.

Thinking about my own situation, I work more all less full time for the NHS in mental health services, which is great. So with the hypnotherapy business I am not under a lot of pressure to push for business, I take the attitude that if work comes in I will take it. So basically it's not been a mega worry for me, but on saying that I pay out to keep professional training up to date, rent office space, pay out for advertising and of course various professional membership fees. It comes to the point of where I do make loss's. And for my small self employment this is where the accountant started pulling his hair out, because I had been receiving a tax rebate for loss's for a few years. It's not a lot of money we are talking about, but I can not press gang clients in, and I am glad that I am not in such a desperate state to want to do so.

Since then I have had some one look at my Tax a fares and have given me a slightly different opinion which makes more sense. Also we have found that the accountant who I had used that particular year had in fact not done his job properly. And going through this sort of hassle just made me think surly are there people out there working on what is not really paying a proper wage having this hassle every year.

But I must look at doing more marketing, because putting up with this type of hassle, I for sure want a proper wage at the end of the day.

James.

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