Home Business Cost+20% Model
The same Cost+20% model the CEO uses applies to YOU.
If you run a business or project from your home through Liana Banyan, you can price your goods and services using the same methodology the Founder uses.
What Counts as Costs?
Workspace Allocation
You can allocate a percentage of your home costs to your business:
| Calculation Method | How It Works |
|---|---|
| Square Footage | Business space ÷ Total home space × Housing costs |
| Room Count | Rooms used for business ÷ Total rooms × Housing costs |
| Time-Based | Hours used for business ÷ Total hours × Housing costs |
Example:
- Home: 1,500 sq ft, $1,500/month rent
- Workshop: 300 sq ft (20% of home)
- Allowable cost: $300/month for workspace
Utilities (Business Portion)
| Utility | Allocation Method |
|---|---|
| Electric | Metered separately OR percentage of total |
| Internet | Business percentage of use |
| Heating/Cooling | Workspace percentage |
| Water (if applicable) | Business use percentage |
Equipment
| Category | Examples |
|---|---|
| Technology | Computer, printer, phone |
| Tools | Workshop equipment, machinery |
| Furniture | Desk, chair, shelving |
| Specialized | Camera, recording equipment, etc. |
Depreciation: Equipment can be depreciated over useful life or expensed immediately (your choice, documented).
Supplies & Materials
| Category | Examples |
|---|---|
| Office supplies | Paper, ink, postage |
| Raw materials | Wood, fabric, ingredients |
| Packaging | Boxes, labels, shipping materials |
| Software/subscriptions | Tools, services, licenses |
Transportation
| Type | Allowable |
|---|---|
| Business deliveries | Yes |
| Client meetings | Yes |
| Supply runs | Yes |
| Commuting | Generally no (home-based = no commute) |
The Cost+20% Calculation
Your Price = Total Costs + 20%
Total Costs = Workspace + Utilities + Equipment + Supplies + Labor
Example:
- Monthly workspace: $300
- Monthly utilities (business): $50
- Equipment (monthly depreciation): $100
- Materials for project: $200
- Your labor (hourly × hours): $500
- Total Costs: $1,150
- Your Price: $1,150 × 1.20 = $1,380
Liana Banyan Software Tools
The platform provides software to help you:
Cost Calculator
- Input your home details
- Auto-calculate workspace percentage
- Track utility allocations
- Generate monthly cost summaries
Expense Tracker
- Log expenses as they occur
- Categorize automatically
- Attach receipts (photo upload)
- Export for taxes
Price Generator
- Input project costs
- Auto-apply +20%
- Generate quotes for customers
- Track margins over time
Tax Integration
- Export IRS-compatible reports
- Schedule C preparation data
- State tax compatibility
- Connect with member tax preparers
Hiring Other Members
You can hire Liana Banyan members to handle business tasks you don’t want to do yourself:
Available Services (from Members)
| Service | What They Do | How It Works |
|---|---|---|
| Tax Preparation | File your taxes | Steward Model (escrow + success) |
| Bookkeeping | Track your finances | Monthly or project-based |
| Marketing | Promote your business | Authority delegation |
| Social Media | Manage your presence | Full domain control |
| Legal Compliance | Keep you compliant | Advisory + action |
| Design | Branding, graphics | Project-based |
How to Hire
- Go to your Portfolio dashboard
- Select Hire a Steward
- Choose the service category
- Review member profiles and ratings
- Select and delegate authority
- Steward escrows their Joules (skin in game)
- Work is done
- You sign off → Steward gets reward
The No-Micromanaging Rule
When you hire a Steward:
- You set goals, not methods
- They have full authority in their domain
- They pay the price (escrow) like you do
- They gain the reward like you do
- Trust the expertise you hired
Tax Benefits
Running a home-based business through Liana Banyan may qualify you for:
| Deduction | Description |
|---|---|
| Home Office Deduction | IRS allows deduction for business use of home |
| Equipment Depreciation | Write off business equipment over time |
| Business Expenses | All documented costs are deductible |
| Self-Employment Tax | Deduct half of SE tax |
Note: Consult a tax professional (or hire a member!) for your specific situation.
Famous Tax Strategies (All Legal)
These are strategies used by successful business owners — and now available to you:
Company Vehicle
| Strategy | How It Works |
|---|---|
| Business Vehicle | Purchase/lease a vehicle for deliveries, client visits, supply runs |
| Deduction | Deduct business use percentage (mileage or actual expenses) |
| Example | A $30K vehicle used 70% for business = $21K deductible over time |
Famous Example: Many small business owners deduct vehicle expenses. The key is documenting business use.
Hiring Family Members
| Strategy | How It Works |
|---|---|
| Employ Your Children | Pay children for legitimate work (filing, cleaning, social media) |
| Tax Benefit | Their income is taxed at their lower rate; you deduct as expense |
| Requirements | Real work, reasonable pay, documented |
Famous Examples:
- The Romney family employed children in family businesses
- Many family farms and businesses employ family members
- The Trump Organization employed family across various roles
Important: The work must be real, the pay must be reasonable, and it must be documented.
Expanding to Stay Profitable
| Strategy | How It Works |
|---|---|
| Reinvest Profits | Instead of taking profit as income, reinvest in equipment, inventory, marketing |
| Tax Benefit | Business expenses reduce taxable income |
| Growth Effect | Business grows while tax burden stays manageable |
The Principle: Wealthy business owners often “stay in the red” by continuously reinvesting — buying equipment, hiring staff, expanding operations. This is legal and smart.
Home Office Deduction
| Strategy | How It Works |
|---|---|
| Dedicated Space | Use a portion of your home exclusively for business |
| Deduction | Deduct that percentage of rent/mortgage, utilities, insurance |
| Example | 20% of home = 20% of housing costs deductible |
The Founder’s Example: The garage is Corporate Headquarters. Same deduction available to you.
🎯 Bounties: Tax & Legal Specialists
We’re hiring tax and legal professionals to serve members. Early hires get bonus incentives.
Tax Specialist Bounty
| Component | Amount |
|---|---|
| Payment Model | Cost+20% (same as everyone) |
| First 100 Hires Bonus | +$500 equivalent in Credits |
| First 1,000 Hires Bonus | +$200 equivalent in Credits |
| First 10,000 Hires Bonus | +$100 equivalent in Credits |
What You’ll Do:
- Help members with tax preparation
- Advise on business structure
- Maximize legitimate deductions
- File returns through the platform
Apply for Tax Specialist Position →
Legal Specialist Bounty
| Component | Amount |
|---|---|
| Payment Model | Cost+20% (same as everyone) |
| First 100 Hires Bonus | +$500 equivalent in Credits |
| First 1,000 Hires Bonus | +$200 equivalent in Credits |
| First 10,000 Hires Bonus | +$100 equivalent in Credits |
What You’ll Do:
- Review contracts for members
- Advise on business compliance
- Help with cottage law compliance
- Support initiative legal needs
Apply for Legal Specialist Position →
Why Join Early?
| Benefit | Description |
|---|---|
| Bonus Credits | Early hires get extra Credits backed by patent portfolio |
| Reputation Building | Be among the first rated specialists |
| Client Base | Access to growing member base |
| Same Terms | Cost+20% — you keep 83.3% |
Why This Matters
Same Rules as the CEO
The Founder uses Cost+20% for their garage headquarters. You can use Cost+20% for your home office, workshop, or studio. Same rules, same benefits.
Transparent Pricing
Customers know exactly what they’re paying for:
- Your actual costs
- Plus 20% for you
- No hidden markups
- No mystery pricing
Sustainable Business
The +20% margin is:
- Enough to make a living
- Not exploitative
- Consistent across the platform
- Builds trust with customers
Getting Started
- Document your workspace — Measure and photograph
- Track your utilities — Get baseline numbers
- List your equipment — What you use for business
- Use the calculator — Generate your cost basis
- Price your offerings — Cost + 20%
- Hire help if needed — Stewards are available
Example: Home Baker
Sarah’s Home Bakery
| Cost Category | Monthly Amount |
|---|---|
| Kitchen space (15% of home) | $225 |
| Utilities (baking portion) | $80 |
| Equipment depreciation | $50 |
| Average ingredients | $400 |
| Her labor (40 hrs × $20) | $800 |
| Total Monthly Costs | $1,555 |
For a $50 cake:
- Ingredients: $15
- Labor (2 hrs): $40
- Overhead allocation: $10
- Cost: $65
- Price: $65 × 1.20 = $78
Sarah hires a member bookkeeper ($50/month) and a member social media manager ($100/month) through the Steward system.
“The same rules that benefit leadership benefit everyone. That’s the point.”
FOR THE KEEP!