Navigating Networking - Ditch the Pitch

By Sandy Ross

In my networking workshops, we explore what motivates people to mingle at such events – their agendas. Usually, we agree that we loathe prospectors whose only motivation is to make a sale or recruit. You know them – flinging business cards round the room, monopolizing introduction slots, heck, they'd come to the opening of a letter just to spew their me-me-me pitch. Remember, the magic word Mother wanted ... 'please' ... well 'you' is magic, too!Those who network just to pitch to prospects or worse, hoping to close sales, are more likely to be seen as lepers than as knowledge links or how-can-I-help-you liaisons. We who shun prospectors know there are many returns on networking investments – not just cultivating clients – like keeping up on trends, targets, our talent!

So, networking is not group prospecting. What is it then, at its best, and how do you choose the best for you? As in other investments, don't put all your time in one basket. Visit more than one group. Broaden the professional palate with many flavours. Strategic stirring is a recipe that blends a strong base of contacts directly linked to your business, sprinkled with 'off topic' interests for spice. I attend two groups regularly – one specific to my craft, my field; the other, a mix representing my target and current clients. Occasionally, I drop in a few drop in's to other groups of peripheral interest, to explore new areas or find influencers of decision-makers. And, on the advice of colleague Linda Lustins, I add value to the mix with strategic volunteering. Pitch in with peers, represent, serve.

When navigating networking today, reap returns reciprocally. Give away tips, link leads, spark conversations with 'you' inquiries. Don't prospect or pitch ... pitch in instead! The returns are well worth your investment!

Sandy Ross, a wordsmith, speaker and facilitator of The Homepreneur Network and of Word's Worth. 519-472-5322 www.execulink.com/~sross Published in Networking Today, November 1999.

In Search of the ‘Reasonable’ Business Expense

By John Haasen

Canadian income tax law determines that "profits from business" are subject to tax. Business expenditures incurred are deducted from gross revenue to determine "profits from business."

Business expenses incurred must meet two criteria to be considered deductible as a current expense:

1. the expenditure must be made or incurred for the purpose of gaining or producing income, and
   
2. the expenditure must not be a capital expenditure, which is capitalized and depreciated over time based on specified Income Tax rates.
   

Self-employed taxpayers are only entitled to deduct "reasonable expenses incurred in earning income from their business." Employees are limited to specific deductions such as union dues and unreimbursed business expenses. The factors that determine whether an individual is an employee or self-employed include whether a person determines what and how work is done, and the opportunity to render similar services to others.

The following are two common business expenses and the "reasonability" guidelines that must be considered:

1. Automobile expenses are based on the proportion of total operating and fixed costs that business use as a percentage of total distance driven. Automobile operating costs include gas, oil, repairs, maintenance, licenses, and insurance. Fixed expenses include interest paid on money borrowed to purchase the vehicle, lease payments, or capital allowance for owned vehicles. The rules limit the deductions that may be claimed where the cost of the automobile is more than $26,000 or leasing costs of $650.
   
   
2. Home Office Expenses relating to a business office in the home include a proportionate share of heat, mortgage interest, property taxes, etc. based on square footage of the office. The two criteria that limit home office expenses is that the space must be used exclusively to earn income, and the home office is either the principal place of business or used on a regular basis for earning income. Home office expenses are deductible up to the amount of income generated, and any unused deductions may be carried forward and deducted in a subsequent year.
   

Since the self-employed taxpayer must be prepared to justify to Revenue Canada that all expenses were incurred for the purpose of earning income, it is imperative to maintain adequate accounting records. Keep vouchers and receipts to support both income reported and business expenditures incurred and understand the allowable and "reasonable" business expense deductions.

John Haasen owns Absolute Business Consultants, 14 Mountsfield Drive, London, ON N6C 2S5. (519) 668-0109 E-mail: haasen@sympatico.ca

Published in Networking Today, November 1999.