One of the statements I most often hear from people is "I can't get ahead because I'm living paycheck-to-paycheck." Well, starting a small or home-based business is a great way to immediately increase your cash flow and begin building wealth.

By starting a small or home-based business, you are likely to increase your tax deductions, so you can work with your accountant and adjust your withholdings to free up more cash flow throughout the year to invest or operate your business. This is preferable to letting the government hold your money all year without paying you a dime in interest.

The government encourages business ownership and rewards entrepreneurs with increased tax credits, deductions and shelters. And not only do you have these lucrative tax benefits through your business, you also have the opportunity to stash away more money for retirement by setting up a SEP IRA, Keogh plan or 401(k) for your company.

When it comes to financing your business, there are quite a few options available. For smaller companies, you can partner with others, pull in sponsors and develop trade lines of credit, which are surprisingly easy to get for those with the right knowledge and properly structured businesses.

If you need to travel, purchase office supplies, computer equipment and other necessities for your business, this can all be done through your company using business credit that does not require a personal guarantee and you can receive major tax deductions for doing it.

Remember, in order to build significant wealth, it is important to move away from a one-to-one relationship with money, where you trade an hour of your time for a specific dollar amount. Instead, dramatically increase your leverage by mastering the ability to create a product or service once, that you can sell infinitely.

Author's Bio: 

William R. Patterson is CEO of The Baron Solution Group. He is an internationally recognized business coach who has been a featured guest on over 300 television and radio programs. William is an award-winning speaker and best-selling co-author of The Baron Son. He is also winner of three 2008 Web awards including Best Wealth-Building Site. His renowned BARON Coaching Program integrates over 200 business and financial accelerators and 500 wealth-building resources to help entrepreneurs rapidly achieve their goals. For information, visit