Smart Small Business Finances
For those of us who own small businesses, mismanagement of finances is a capital crime. The cash you have is what your company lives on, and any wasteful spending can have disastrous consequences, in some cases determining whether you will make a profit or folding your tents. Those small business owners who are in it for the long haul are the ones to keep a sharp eye on those finances and refrain from spending more than is necessary to keep their company running efficiently.
For starters, don’t overstaff. Having employees that you don’t really need drains capital, as well as preventing you from investing in business initiatives or concepts that may serve to grow your business over the long haul. Make sure you really need a new employee before hiring. Maybe positions can be combined so that one person can handle the responsibilities instead of hiring another body.
Don’t go overboard on advertising. The landscape has changes, and what used to cost a fortune and work a decade ago may now be accomplished with little or no monetary cost, and without having to enlist a marketing firm to assist you. Social media has thrown open the marketing door on a number of new levels, allowing you the chance to get your brand name, message, product, or service out to the ones who need to receive it. Never underestimate the power of Facebook, Google Plus, and Twitter.
Don’t blow your cash or max out your credit line on equipment. While equipment is necessary for any small business to operate, it is not always necessary to go into debt to secure the equipment you need.. Equipment financing is becoming more and more common, allowing you to obtain the equipment your company needs while freeing up capital to allow for investment in other projects. Leasing also allows you to remain on the cutting edge of new technology, upgrading as newer and more advanced models become available. Small business loans are another option, although getting approved may be more difficult since it requires a solid credit score and some measure of collateral.
Pay attention to Section 179 of the tax code, as it provides for a number of deductions that you may not have been aware of otherwise. In 2013, for example, you can deduct the full purchase priced of qualifying business equipment and property up to $500,000. This amount will decrease significantly next year, so take advantage while you can. Consult with your tax professional to make sure that what you are considering does in fact qualify for the Section 179 deduction.
Maximizing Your Budget
Basically, you want to avoid making foolish mistakes with your capital. Exercising some common sense and exploring all options available to you will go a long way towards making sure that you get everything you can out of the cash your company has on hand.
LeaseQ is one of the leading providers of business equipment leasing and financing in the United States, with options available for both small businesses and large corporations.