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Small Business Owners: Strategies That Most Business Owners Miss That Cost Them Their Hard Earned Money

Small Business Owners: Uncommon Tax Write-Offs

Small Business Owners: Strategies That Most Business Owners Miss That Cost Them Their Hard Earned Money

  1. Revenue – Profit = Expenses: Set a target for profits and let that dictate what you have left to pay expenses.
  2. Four Buckets for Business Profits: Business profits should go into one of four buckets: emergency funds, business growth, lifestyle, and retirement plans.
  3. Business Valuation: Increase the valuation of your business without growing it by…
    1. Increase Recurring Revenue: convert revenue, where possible, to a subscription or other recurring form.
    2. Reduce Revenue Concentration: as a general rule of thumb, no more than 20-25% of income should come from one customer
    3. Make Yourself Operationally Irrelevant: If you plan to exit your business in the near future, in order to achieve full value for your business, it must be able to survive without you. Make sure others at your business can service key accounts, keep operational functions running smoothly, and develop the next generation of leadership.
  4. Marketing: Understand who your target audience/customers are and spend your marketing budget on the most impactful targets
  5. Employ your Family: Many small businesses can employ their children to do minor tasks, such as filing, cleaning, stocking. And then deposit the child’s pay in an interest-bearing bank account for them.
  6. Listen to Your Customers: Listening to feedback from your customers is crucial, and both positive and constructive criticism can benefit your business.
  7. Prioritize Customer Service: Give your business the chance to turn unhappy customers into loyal ones.
  8. Efficiency: Small business owners need to be time-efficient – small business owners wear many hats and should utilize technology, automation, and personnel to help run the business
  9. eCommerce and Social Media: If you sell a product, or provide a service, put your product/service out where people are now shopping the most, their computers/tablets/cell phones.
  10. Know Who Your Competitors Are: You don’t want to bring a product into an area that is already saturated with the same product from a vendor that has established roots in the area
  11. Build an Effective Team: Don’t try to do everything yourself, you will either burn out or progress will slow down. Rely on both human and technical resources to help run your small business.
  12. Learn to be Flexible: Being flexible allows you to be a better listener to your customer base, be adaptable to change, and always be ready to embrace what’s around the corner
  13. Be Passionate About Your Small Business: the reality is owning a small business is no easy task. Being passionate about what you do, the products you sell, and the customers you do business with will help give your business purpose and a drive for growth.

Now that you’ve read our top 13 strategies for Small Business owners, let us help prepare you for tax season! We’ve compiled 15 write-offs that most small business owners forget to claim. Click below to get those now!

 

Tax Deductions for Small Business

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