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Radio ShowNuts and Bolts of an RN Business Product Sales Facts SheetNature of the businessIn the U.S. there are two types of businesses. Those that provide services and those who provide products. Typically nurses provide services and have incidental products that support the service, e.g., books, CDs, documents, reports. Products sold by nurses often include patient care items, wellness products, cosmetics, health foods, and nutritional supplements. A product sales business is usually operated from a home office and products are sent to the customer. The sales may take place at other events or in retail establishments. Providing a product does not always require designing, manufacturing, and/or selling the product. Most common products are not patented. You can patent your product and then sell the patent to a manufacturing company rather than manufacture it yourself. In the US, the typical royalty is 5% of the net. Gary R. Bronga, president of Clipeze, Inc., designed, developed, and successfully brought his products to market. Clipeze products are sold internationally. He has agreed to work with the NNBA providing information and mentoring to its members. To request his electronic booklet, Bringing Your Product to Market, send an email to bemis@nnba.net. Startup costsStartup costs for nurses in product sales are about $8,000 for a home office, not including the investment in products. The book, Self-Employed RN: Choices, Business Aspects, and Marketing Strategies, contains a complete outline of startup costs. Click here for book details and/or to purchase the book. The Internal Revenue Service (IRS) requires that personal and business expenses and equipment be held separately. Personal computers, software, printers, and other equipment and supplies used by the company can be purchased by the company from you. You can loan your company startup funds to purchase these items or rent them to your company. No personal business should be done on company computers or equipment. Industry futureThe future for this industry is good if the products continue to remain in demand and the nurse keeps up with the needs of their customers. Cosmetics and wellness products are projected to have a good future. Selling products on the Internet is considered the wave of the future. EarningsEarnings are limited by the number of products a nurse can sell. Sales can be done without any physical interaction over the Internet on an international level. EducationBusiness education is needed for nurses to understand the business aspects of being self-employed or a small business owner. The association provides this education customized for nurses. College and community business courses do not understand the nursing community. Advanced nursing courses do not teach self-employment and small business ventures. The NNBA provides this education in various ways to make it convenient and affordable for you.
Business terminology
Business legal structureThe legal structure for a product business can be a sole proprietorship, limited liability company (LLC), or a corporation of one or more. Sole proprietors, LLCs, and S corporations are considered self-employment by the IRS. The regular corporation is an independent legal entity separate from its owners and provides the greatest tax deductions and protection of personal assets. The Self-Employed RN: Choices, Business Aspects, and Marketing Strategies book contains an outline of a business plan. Click here for book details and/or to purchase the book. Little known factsSelf-employment may cause difficulties when applying for loans and mortgages. If you have questions about starting a product business, contact Pat Bemis, RN CEN, president NNBA. Contact by email. Phone (321) 633-4610.
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