Relocating a Business: 5 Factors You Need To Know

Relocating a business can be a very complex issue, whether you’re moving to another state or just down the street. To make everything run as smooth as possible, you need to plan the move carefully. The stakes are very high and there are a lot of things that could go amiss if you don’t organize everything down to the last detail. There are some factors you should make your priority in order to avoid future trouble.

Proximity to Transportation and Accessibility

When picking a new location for your business, one of the most important things to take into consideration is transportation options. In metropolitan areas, a large number of people rely on public transport, so if you have access to metro or bus stations it is good for both your customers and your employees. It provides the staff with a convenient and easy way to travel to work. Plenty of them might even be happy that they don’t have to get behind the wheel every day! Some people, however, find public transport intimidating and foreign so you should inform your employees about their options ahead of time. Organize a meeting with the staff before relocating and let them know about the nearby public transit options.

As for customers, you need to make sure they know how to find you and that they have easy access to your facility. Measure the doorways to make sure they aren’t too narrow and look for any step-ups that make it difficult for people to enter. If some concerns are raised, discuss them with your landlord before you sign a lease or your company could be subject to a lawsuit.

Staffing

There are a few main factors you need to consider concerning your staff.  First, you need to figure out the number of employees you need at your new location. If the new facility is bigger than the previous one, there might be a need for increased staff numbers. Is it feasible to hire more people with the current profit?

Second, can you attract a new workforce? Chances are you will have to let go of some of your trusted old employees as you move to a new location and you might need to hire new staff. If the living conditions in the area aren’t so good, you might find it difficult to find new people to hire. Looking for and training a new group of qualified and skilled workers can take some time at first. Do not forget that new people in the workplace might need some help fitting in. Team building exercises will bring your workers closer together and they will have fun in the process!

Hidden Costs

Looking at the rental price of your new building can be deceiving. Make sure not to take every expense at face value when relocating, as it can be easy to overlook many of the less obvious costs. When comparing two locations price-wise, don’t forget to also include expenses such as utilities, parking lots, flooding possibilities and snow removal costs. The new location might seem more expensive when you first look at the rent, but it could be the more economical choice overall if the price includes heating, cooling, wifi, parking and so on.

This requires a lot of research, especially if you’re moving to another country. Some things to look into are good infrastructure (you don’t want to deal with common power outages!), legal and regulatory structure and the culture. Ensure that the people have adequate education and if local universities provide courses that fit your company’s needs.

The move itself can also be costly and sometimes won’t go the way you planned. To avoid any hassle, you could hire a reliable logistics management services provider. They will do all the heavy lifting so you don’t have to.

Keeping Both Locations Running

This is a thing that can seem obvious at first, but keeping both locations running during the move is extremely difficult and requires a lot of cautious planning. If you don’t think this through properly, you might end up with a lot of unhappy customers! Either figure out a plan to keep the business running during the move, or make sure your customers are notified ahead of time that you’ll be taking a break for some time. Explain the issue to them and let them know when you will be open again. You will probably still end up with some complaints because not everyone will see the announcement in time, so beware!

Apart from the customers, it is also crucial to update your corporate address if you want to avoid orders and mail going to your old facility. Check if all suppliers and delivery services have your new location in mind.

Proximity to Amenities

While access to transportation options may be the most important thing to consider when looking at the facility’s surroundings, it is also a good idea to check if there are local amenities available in the area.

Having lunch options within walking distance is a sure way to keep your staff happy. Inform them about any shops, convenience stores, cafes or gyms you find nearby. Having the ability to run some errands or do some quick grocery shopping after work will be much appreciated by your workers. Keeping employees satisfied isn’t only a responsibility, but a pleasure as well.

Conclusion

Moving can cause a lot of headaches for both you and your staff. This list doesn’t cover all the issues you might face when dealing with such a complicated task, but it will surely help keep you on the right track. It is a risky business, but if you plan ahead carefully and strategically, success is nearly guaranteed.

Guest Post: About the Author

Nick is a blogger and a marketing expert currently engaged in projects for Media Gurus, an Australian business and marketing resource. He is an aspiring street artist and does Audio/Video editing as a hobby.

8 Proven Methods for Small Businesses to Save Money

Small businesses frequently go through cycles of strong and weak profits. When profits are low, you probably will want to find time-tested ways to save money. You do this by cutting costs and reducing your overhead without sacrificing sales. Here are 8 proven ways for your business to save money:

  1. Outsourcing:

    You can save money by outsourcing tasks that are not central to your business mission. This keeps your full-time staff as small as possible while outsourcing work not performed by staff. You can hire contractors and consultants as needed for specific tasks, often at a lower all-in rate than needed for an employee with the same skills.

  2. Advertising:

    You can continue to reach customers without traditional advertising. Rather, low-cost alternatives are available that will save you money. One alternative is to spend your marketing money on public relations rather than advertising. For example, a good PR strategy can get your company mentioned as authoritative sources in media outlets and publications. Inbound marketing using SEO and social media can be just as effective as conventional advertising in increasing traffic to your website.

  3. Vendors:

    Review your relationships with your vendors to see whether you can negotiate lower costs. Vendors want to keep their goods and services flowing to their customers and might be willing to charge less if that allows them to maintain their business volume. You can negotiate on a huge range of costs, from phone service to office supplies. The nice thing is that there is no penalty for trying to lower vendor prices, whereas forgone potential savings are the penalty for failing to negotiate.

  4. Cloud:

    If you don’t already live in the cloud, now is a great time to move in. Cloud-based solutions can save you big money compared to the cost of acquiring and operating your own expensive hardware. Cloud-based systems host your databases and software. SaaS (software as a service) costs an annual fee that can be much cheaper than developing or running your software in-house, such as payroll and ER systems.

  5. Telecommuting:

    Everyone can win when you embrace telecommuting if that’s possible for your business. You can save on office costs and ongoing operating expenses. Your employees save commuting costs and enjoy a better work experience. The result is to produce work products with minimal overhead. You can start with some of your office staff and work towards expanding telecommuting as convenient.

  6. Green:

    Happily, the moral imperative to go green coincides with cost-cutting. You’d be surprised how little things can add up to big savings. For instance, turn off machines when not in use, and use a printer that prints on both sides of the paper. Better yet, reduce your use of paper by adopting a paperless office concept. Where feasible, buy recycled supplies and equipment, utilize efficient lighting, and recycle your own waste for money.

  7. Debt:

    It might save you money to consolidate your various debts into one, convenient loan that charges a reasonable interest rate. If you have to make several debt payments per month, consolidation can cut it down to a single lender. If you choose a lender like IOU Financial, you can have your payments deducted daily from your bank account, keeping your payments affordable and automatic.

  8. Maintenance:

    Are you paying for daily cleaning services at your office? Perhaps you can cut back on this expense by training staff to keep things clean and neat. With proper staff training, you may be able to cut back to weekly cleaning without noticing the difference.

Conclusion

We’ve touched upon several ways for you to cut your business costs with little or no sacrifice to your operations. There are many more methods to save money, and we will no doubt return with additional suggestions in a later blog. Remember, it takes just a little extra effort to implement money-saving protocols that will continue to save money for your business over the long run.

Does Your Small Business Need a Legal Team?

As with most business advice, the answer to whether or not your small business needs a legal team isn’t a straightforward ‘yes’ or ‘no’.

There’s no doubt that your business needs some form of legal aid, as trained attorneys and paralegals can help ensure that your business is legally sound. They’ll be able to spot issues in your operations that you might not have considered, and they’ll work with you to come up with solutions. But at what capacity is necessary for your business?

Legal Considerations to Keep in Mind

Picking the right legal help requires understanding the potential roadblocks you might face. So, with that in mind, here are some common legal issues for small businesses:

Business Structure
Entrepreneur cites failing to choose the right business structure as a huge issue small businesses often face. Setting your business up as a sole proprietorship versus an LLC or S Corporation has its own set of disadvantages and benefits, for example, that not many account for.

Copyright
There’s no shortage of small businesses nowadays, with new ones popping up almost every month. Protecting your name, branding, and products under copyright laws (remember that each of these is protected by different laws) allows you to differentiate from your competition.

Cybersecurity
A strong cybersecurity protocol is important in any business, especially in today’s tech-heavy world. Having lax cybersecurity policies could lead to a huge data breach, thereby slowing down operations and costing your business.

Factors you Need to Consider

With these situations in mind, here are some ways to help you choose the legal aid that suits your business best:

Understand the landscape
Many business owners shy away from seeking legal services because of the misconception that they cost lots of money. Small Business Trends’ list of low-cost legal services can be a great starting point for your business, as you’ll be able to get a quick overview of where your business needs help. Using these resources narrows down your selection of law firms that can tackle the issues that you need help with.

Set a budget
Most investments start with a budget, and seeking legal help is no different. Once you’ve surveyed the landscape, you’ll have a better price range in mind. You should also remember the different kinds of solutions available to you. A full-blown legal team costs more than a sole business lawyer, which then costs more than a quick consultancy or ad hoc team.

Keep trust in mind
You want to make sure that you trust whoever is handling your company’s legal affairs. After all, they have to know the ins and outs of your business—and they might even represent you in key meetings. An article by Special Counsel on ‘How to Choose Outside Counsel for Your Company’ points out that the best legal teams will get to know their clients on a deeper level. Firms who are worth partnering with understand the importance of cultivating a lasting relationship in order to give the best assistance. Working with someone you trust also makes it easier for you to let them into every nook and cranny of your business.

Our post on the ‘7 Ways to Avoid Financial Stress When Running a Business’ outlines that adopting shady practices can end up causing you stress in the long run. Investing in the right legal protection is exactly that—an investment—but it’s one that will save you a lot of heartache.

There are lots of factors that come into play when deciding what kind of legal aid you need. A legal team is but one of the many solutions you can adopt, so picking the right one comes from understanding the scope of your needs.

Guest Post: About the Author

Working as a business consultant for over 4 years, Alaia Catherine has found a passion in writing. Working as a freelance writer on the side, Alaia provides business advice to a variety of blogs and websites. When she isn’t writing or working, she’s trying out new restaurants with her husband near their home in Seattle.

Business Credit Scores vs. Personal Credit Score

Starting a business takes money, and that money typically comes from financing. But in order to get approved for a business loan, entrepreneurs need to meet certain lending criteria, including having decent credit. Lenders will not only look at your personal credit score but also your business credit, both of which play a role in your ability to obtain financing for your business.

But how exactly does business credit and personal credit differ? Let’s dive into each to understand the difference.

Business Credit

Business credit – also referred to as commercial credit – helps lenders to determine your creditworthiness and candidacy for financing. A high business credit score can boost the odds of securing a business loan and obtaining better favorable terms. On the other hand, a low business credit score can make it more difficult to obtain financing and secure more favourable terms.

Not only do lenders look at our credit score, but so do vendors and suppliers before agreeing to deal with your company. Business credit is also required to obtain business insurance, and in many cases, it’s also needed for purchasing goods and services.

While your personal credit may be able to be used for some of these, in many cases it can’t. And even in cases where personal credit may be used, it really shouldn’t, as using personal accounts can make accounting a lot more confusing and difficult.

Who Creates Your Business Credit Score

There are three major credit bureaus in Canada that are responsible for determining business credit scores: TransUnion, Equifax, Dun & Bradstreet. Each of them uses a set of factors to determine a business credit score.

TransUnion

TransUnion offers both business credit reports and business credit scores. TransUnion uses business credit data and public record information to create their business risk score. This score takes into consideration a number of factors, including insolvencies or delinquencies, available credit limits, business bank accounts, credit cards, and collection.

Equifax

Equifax works a little differently than other credit bureaus in that it assigns a business three different scores. The first is a conventional credit risk score between 100 to 992, which assesses a company’s credit history. The second report from Equifax contains a “Payment Index” range from 0 to 100, which is a measure of payment history to past creditors. A score of at least 90 means that a business pay their bills on time, on average. Thirdly, Equifax’s “Business Failure Score” ranges from 1,000 to 1,880 and assesses the risk of businesses dissolving.

Dun & Bradstreet

The Dun & Bradstreet PAYDEX score is a rather straightforward business credit scoring model that’s based on how promptly payments are made and is scored up to 100. This credit score assesses the average number of days needed to pay off a debt. A score of 100 means that bills have been paid at least 30 days or more before they’re due, on average. Scores of 80 mean that bills are being paid the day they’re due, on average. Generally speaking, the longer it takes for you to pay your bills, the lower your score will be.

Personal Credit

Personal credit scores are used by lenders to assess a borrower’s creditworthiness and financial health. These scores represent numerical expressions that are based on an assessment of a person’s credit information.

Lenders use credit scores to assess whether or not consumers are able to qualify for a loan, the interest rate charged, and potentially even the loan amount. Missing bill payments and taking out too many loans can bring a credit score down, which can make it more difficult for a borrower to secure a loan.

A high credit score, on the other hand, means the individual has been much more responsible with his or her finances. Payments are typically made on time, credit limits are not maxed out, and debt loads are relatively healthy.

In Canada, personal credit scores range from 300 to 900. The closer the score is to the upper level, the better. Generally speaking, lenders like to see a score of at least 650 to 680 before they agree to extend a loan to an individual.

Who Creates Your Personal Credit Score?

In Canada, there are two major credit bureaus, Equifax and TransUnion. These bureaus compile the information found in your credit file to calculate your credit scores.

Certain factors are used to calculate a credit score, including:

  • Payment history – A history of timely payments will help increase your credit score, while a history of missing payments will do the opposite.
  • Debt load – The amount of debt you carry relative to your income will impact your credit score. Higher debt loads are often associated with lower credit scores, while lighter debt loads are typically associated with higher scores.
  • Credit utilization ratio – The amount of money that you spend relative to your credit limit will be a factor in your credit score calculation. It’s generally recommended to keep your spending to no more than 30% of your credit limit in order to keep your credit score healthy.
  • Age of your credit accounts – Older credit accounts are usually a good thing for credit scores, especially if they’re in good standing. Further, a longer credit history will help credit bureaus better assess your credit health.
  • Credit mix – Having a few different credit accounts – such as a mortgage, personal loan, car loan, and credit card – can be a good thing for your credit score, as long as you are responsible with all bill payments associated with each.

How to Establish Business Credit

In addition to keeping all of your business finances separate from your personal finances, there are other ways to establish business credit:

Open a separate business account – As already mentioned, mixing your personal and business finances can make things more cumbersome. Not only will a separate business checking account make things easier for bookkeeping purposes, but it can also help you build business credit when you use it strictly for business expenses.

Apply for a business credit card – Using a business credit card responsibly can help you build good credit, much like using a personal credit card responsibly can have the same effect. With each timely payment you make, your business credit can be improved.

Apply for a small loan – Every payment you make will be reported to the credit bureaus, which can help you build good credit.

Establish credit lines with suppliers and vendors – Since Dun & Bradstreet needs a minimum of four vendors to generate its credit report, it would help to establish credit lines with suppliers and vendors and build up relationships so they can eventually turn into future trade references for your business when you apply for a business loan.

Regularly keep tabs on your business credit – It doesn’t take long for your business credit to change, so it’s important to keep an eye on it on a regular basis. By identifying any changes in your business credit report, you’ll be able to spot any strange issues that you can deal with right away before they negatively impact your credit rating.

Should You Ever Mix Business and Personal Credit?

While we don’t recommend using your business credit card to pay for personal expenditures, your personal credit score plays a key role in your business. Having said that, lenders are still going to look at your personal credit score if your business is relatively new and will require a personal guarantee when applying for financing, which means you’re still responsible for the loan. If you ever default on your business loan, the lender has some more recourse aside from going after your business.

It’s important to still maintain your personal credit score while you’re building your business credit since they can both be important when applying for a business loan.

Guest Post: About the Author

Loans Canada is a financial technology and media company that connects Canadian consumers to financial service providers and educational resources. Loans Canada is one of the nation’s leading online destinations for information on loans, debt relief, credit building, and commercial financing. Their technology platform allows consumers to search for the best lenders and credit providers in Canada.

2020 Technology Trends for Small Business Owners to Anticipate

At last check, America was hosting more than 30 million small businesses. The ones that plan for the latest technology trends will hold a distinct advantage over their competitors. Here are six tech-related trends that business owners should anticipate. Perhaps one or more will have a direct impact on your business.

1.    The Growth of Automation Software

Artificial intelligence (AI) and related automated technologies were once considered too big to affect small businesses. That’s rapidly changing now. The evolution of AI is making it a viable option for small businesses in a number of business processes, including:

  • Email marketing
  • Customer service
  • Data entry
  • Accounting

As AI apps filter down to small businesses, the businesses that climb on board will be better able to compete with larger companies. In addition, the growth of automation may create a startling new number of business opportunities that will interest entrepreneurs.

2.    Work from Home

Futurists predict this trend will quickly become the new normal for millions of small business employees. Attitudes toward remote work are changing. Once, owners and managers feared that it would lead to lower productivity. However, the facts indicate just the opposite. Studies show that employees who work from home are more productive, thanks to fewer distractions and time saved on commuting. Small businesses will increasingly experiment with telecommuting, at least for part of the week. Owners may actually save some operational costs, and employees will save on commuting. The result should be a more productive environment.

3.    Social Media Marketing

The number of small businesses who latch on to social media technology to market their offerings will continue to accelerate. Platforms such as Twitter, LinkedIn, Instagram, and Facebook continually refine their technology to improve marketing return on investment for their customers. Small business owners are becoming aware of the value of social media influencers. These are professionals who have large followings and who can help bring your offerings to the attention of their many followers. If you want to get the biggest bang for your marketing buck, consider engaging a social media influencer to help with your marketing campaigns.

4.    Freelance Economy

The same technological progress that animates telecommuting makes it easier for millions of people to develop side hustles that form the genesis of new small businesses. The freelance, or gig, economy allows folks to monetize what were once hobbies and to work as consultants/contractors to multiple clients. As telecommunications becomes faster and more reliable, it becomes easier and cheaper for professionals to compete online as graphic artists, writers, webmasters, marketing consultants, and many other gigs. For example, one leader in the field, Upwork, provides complete support services to facilitate small business gigs for freelancers, and its influence should grow in 2020.

5.    Customer Support

Consumers increasingly favor online customer support over phone calls. Real-time chats allow specialists to handle customer inquiries and complaints. This has a couple of side effects. First, it encourages customer interaction among people who don’t like to talk on the phone or to wait in queue for the next available representative. Second, the growing use of AI provides online capabilities to solve many problems online before the intervention of a human. Third, it allows easier rationing when customers need to speak to a person to solve a problem.

6.    Shifts in Investments

Small businesses may have to replace aging technology to successfully compete. The growth of cloud computing and the introduction of 5G networks are but two examples of where business owners may need to revamp antiquated equipment and unproductive practices. Although this may require an initial investment in hardware, software, and expertise, the cost will be well worth it. Companies who rely on older technology will find themselves at a disadvantage to nimbler, tech-savvy competitors.

Conclusion

It will require increasing investments in equipment, software, and expertise to compete in 2020 and beyond. If you would like to explore the financing you might need to help your business thrive, we invite you to contact us at IOU Financial. You’ll find it easy to borrow the money you need quickly, economically, and with convenient repayment options. Don’t let tight cash prevent you from seizing the promise of advancing technology — contact IOU Financial today for a fast small-business loan.

How to Celebrate Women’s Small Business Month

October is Women’s Small Business Month (WSBM), and truly deserves to be celebrated. Women have made tremendous strides as small business owners, although there are still many challenges ahead. Here are some ways you can draw personal meaning from WSBM as you celebrate the occasion.

  1. Learn About the National Women’s Business Council (NWBC):

    The Council was formed in 1988 with the mission to help end discriminatory lending to women. The Council continues to this day, giving important non-partisan advice to the federal government about issues vital to women business owners. It’s refreshing to see how much progress has been made as people of good will dedicate themselves to extending progress to today’s and tomorrow’s challenges.

  2. Identify Your Business as Woman-Owned:

    You can get the word out on your website and on social media. Include figures and statistics about the rising presence of women-owned small businesses. For example, did you know that almost 40% of U.S. businesses are owned by women, comprising more than 11 million female business owners? Add a page to your website discussing how you created an innovative service or product, and any obstacles you had to overcome as a woman.

  3. Offer and Encourage Mentorship to Young Women:

    If you are a role model for female entrepreneurship, consider mentoring the next generation of women business owners. You can speak to local groups, form an organization with other local businesswomen, and bring in interns to learn how a business works.

  4. Schedule Special Sales and Promotions:

    Make October a month your customers will remember by sponsoring sales and promotions tied to WSBM. This can be especially effective if you offer products or services that are helpful to women and families. Consider running an essay contest and awarding prizes to young women who describe their passion for starting and running a business.

  5. Get Involved in the Political Process:

    There is still a lot of work to be done to ensure that women get equal pay for equal work, and that businesswomen get the same access to credit that businessmen do. Support candidates and initiatives that can help women overcome obstacles and increase the availability of capital.

  6. Publicize Grants to Women Owned Businesses:

    There are many national, state, and local grants available to female entrepreneurs, such as these five leading examples:

      1. InnovateHER Grant:
        This grant, sponsored by the Small Business Administration, awards three grants annually totaling $70,000 to businesses that develop offerings that empower and influence women and their families.
      2. Eileen Fisher Women-Owned Business Grant Program:
        Ms. Fisher had but $350 when she launched her clothing business in 1984. The company now annually earns more than $300 million in revenues, and it pays its success forward with 10 annual grants totaling $100,000.
      3. FedEx Small Business Grant Contest:
        Although not exclusively for women, females have had great success receiving hundreds of thousands in grant money, including several women grand prize winners.
      4. Girlboss Foundation Grants:
        Since 2014, the Foundations has granted over $120,000 to women entrepreneurs in the fields of music, design, fashion, and the arts. Grants are awarded quarterly in amounts ranging from $500 to $15,000.
      5. Amber Grants:
        WomenNet launched Amber Grants in 1998 to commemorate a young woman who died before achieving her entrepreneurial dreams. Grants are small, numerous, and easy to apply for.

The ways you can recognize WSBM are limited only by your imagination. If you are a woman growing your own business, remember that IOU Financial is an equal opportunity lender that has lent millions of dollars to female entrepreneurs. Contact us today if you’d like to take your business to the next level!

Team Building Ideas to Strengthen Your Business

As a business owner, you ultimately must ensure that new recruits mesh well with your established team. Unfamiliarity can breed problems and inefficiencies, and it hampers proper communication. One way to bring new employees into the fold is through team building exercises. These activities help foster interdependence and trust among your employees. New employees learn to work with each other and with old-timers for the good of the team. In the end, the time and money spent on team building should be repaid many times over. What follows are several team building ideas that can strengthen your business.

Charity Run

In a charity run, sponsors donate money based on how many miles are covered by walking, running, or biking. This idea has several strong points. First, it helps a worthy cause, such as medical research or victim support. Secondly, it gets employees out of the office and helps establish interpersonal relationships. Thirdly, it’s a fantastic marketing tool that will raise your social profile. Finally, it helps promote fitness and reduce stress for your staff. Consider creating T-shirts for your staff to wear during the run and see if you can involve other organizations as well. Usual course length is a few miles or kilometers, but any length will do.

Christmas Tree Decorating

Malls, hotels, and other venues often host displays of Christmas trees during the holiday season. You might participate by having a decorating contest for teams of employees, with the winning selection submitted to the sponsor for display. Each team could be given a tree, a budget, and a few hours to acquire and apply decorations. Perhaps you’ll emphasize a theme, such as environment responsibility by allowing only recycled materials for decorations. Reward the winning team with some prize, such as free pizza. Even though there is only one winning team, everyone wins by participating in a competitive and enjoyable activity.

Scavenger Hunt

Teams of employees compete with each other to be the first to collect a list of items. A newer twist is to have each team also perform some tasks as well. A proper scavenger hunt requires a decent amount of preparation, but employees seem to love them, especially when you hand out prizes in the end. You can conduct the hunt at your office, but its more fun to pick an outdoor venue, such as a local campground. With proper preparation, this can be a hugely successful team-building activity.

Karaoke Night

Employees who would never individually go up and sing at a karaoke bar might be willing to sing in a group. You can set up teams of participants and make arrangements with your local karaoke bar to sponsor a contest. Winners should receive a fun gift, and all participants should be acknowledged.

Paintball

What better way for your staff to work off their aggressiveness than with a paintball contest. Your town probably has a nearby paintball course you can hire for the day. Organize teams of employees to compete for prizes and recognition. Paintball rewards strategic thinking, bravery, and common sense — all traits you should cultivate among your staff.

Conclusion

Team-building is well worth the expenses involved in promoting it. You can set up activities that range from modest to challenging, with negligible to substantial budgets. If you plan something elaborate that you’d like to finance with a loan, contact us at IOU Financial for a quick business loan that’s easy to repay.

7 Tips for Boosting Your Tax Refund

The tax season is slowly kicking into gear. It’s a constant struggle to keep up with the legal changes, leaving many of us with missed opportunities, pondering just how much we could have gotten in tax refunds.

In this article, we aim to help you with a few simple tips. Each of them offers a glimpse into the current law, more like a lead you can use to further find out how you can benefit most from tax refunds this year. Interested? Keep reading. 

The Power of Tax Credits

Tax credits are often mentioned to be better than deductions themselves. This is because they subtract from your tax bill in a 1:1 ratio, and not in proportion to your rate. It’s a pure “dollar-for-dollar” deal.

There are several tax credits for which you can qualify as a business owner:

  1. Work Opportunity – a credit for employers who hire candidates facing significant employment obstacles, such as food stamp recipients or ex-felons;
  2. Disabled Access – similarly to the first one, a credit for employing candidates with disabilities;
  3. Qualified Research Activities – credit for resources spent on research and development – whether for a product, software, or a patent.

Look into the tax credit regulations to know which ones you are eligible for.

Prepay

If there are any fees that should be paid in January of the following year, try to pay them off by the end of December.

However, don’t get carried away in the race to pre-pay everything and run your account balance low. Look for smaller expenditures in membership fees, software subscription renewals, office space rental, warranties, etc.

Track Mileage

Whether you are an employer or an employee, track your commute to work. Over time, the mileage can add up to a significant tax deduction. There are two ways to go about it:

  • The Standard Deduction Rate – which covers the actual mileage (the IRS adjusts the rate each year, so make sure to stay informed), and
  • The Actual Expense – which covers everything else: gas, parking fees, insurance, etc.

According to a lot of firsthand online testimonials, many have found that the standard deduction rate works best for them. If you’re having trouble tracking mileage, there are smartphone apps that can help you get accurate tracking. Plus, it’s easier to turn it into a habit.

Stay in the Loop

When it comes to taxes, changes are being implemented every year. More so for businesses than for private households. It’s expected that most of it will be difficult to follow, especially when we’re busy.

Luckily, you can hire a tax expert to help you. Together with them, you can look over your current state, where the missed opportunities are, and how to fix any possible mistakes you’ve been making so far. It’s a great way to get a leg up on your finances and to make the taxes work for you, not against you.

Your 401K

“Investing” in your 401K or IRA (Individual Retirement Account), is a great way to ensure your future money is safe from taxation. It stays that way until you make your first withdrawals, which can be a few decades from now. Look into maxing out your contributions each year, and if the company you work for has a specific percentage for matching your investment, be sure to take advantage. 

If you are a business owner, your follow-ups to the employees’ contributions can also be written off as tax-deductibles. Just make sure to consult your tax expert beforehand, because the return value depends on the payment method.  

Employee incentives

We all know about the health and retirement plans, but there are also company picnics, gifts, bonuses, and even educational assistance. These can all be tax-deductible. Again, the best way to go about it is to visit the IRS webpage and check which ones are eligible for your business.

Write off Bad Debts

While many are already familiar with bad debts, it doesn’t hurt to remind: you can write off bad debts from clients that didn’t manage to pay you out. However, this comes with numerous caveats. It depends on how much time has passed for your request to be valid, and also on how well the business is doing financially. You’re more likely to get the debt written off if the company is near foreclosure and bankruptcy.

In the End

The secret to boosting your tax deductibles lies in your knowledge. Get informed as thoroughly as you can. A lot of the abovementioned tricks are known among experienced business owners and employees as well. If possible, hire an accountant or a tax expert for help. Look for advice among your peers, as firsthand accounts give great insight into what is possible and what isn’t.

Guest Post: About the Author

Michael Deane is one of the editors of Qeedle, a small business magazine. When not blogging (or working), he can usually be spotted on the track, doing his laps, or with his nose deep in the latest John Grisham.

5 Webinars for Small Business Owners

Small business owners and entrepreneurs know that they can never stop learning. Webinars are effective learning tools, whether its filling in knowledge gaps, learning the latest techniques, or networking with industry leaders. Good webinars are definitely worth your investment in time. You can find a wide range of topics available, including product development, selling and marketing, administration, and e-commerce. What follows is a list of free online webinar providerss and courses to help build your business skills.

U.S. Small Business Administration

The SBA’s mission is to help develop and support small businesses, startups, and entrepreneurs. One important way it expresses that support is through a large catalog of online courses and webinars. You’ll be able to find materials covering topics such as:

  • Planning a business
  • Business launch
  • Management
  • Growing your business

The course material is immensely helpful for new entrepreneurs, because you can learn how to write a business plan, observe legal requirements, and explore financing options. You’ll also find courses on sales, marketing, savings plans, social strategies, and many other topics.

National Federation of Independent Business

The NFIB is a member-driven organization that advocates for small and independent business owners. It runs live webinars that cover a variety of issues important to small businesses. You can find many webinars of great practical value, such as these recent ones:

  • Drugs in the Workplace: What Small Businesses Can and Should Do Now
  • Personal Branding on LinkedIn
  • 6 Ways to Use Local SEO for Your Small Business
  • Technology Trends Critical for Small Businesses
  • Is the Sun Setting on the US Economy and Small Businesses?

Recorded webinars are available at all times on topics spanning finance, taxes, healthcare issues, marketing, and much more.

SCORE

SCORE is the country’s biggest network of business mentors dedicated to launching and growing small businesses. It is a 501(c)(3) nonprofit organization and a resource partner of the SBA. SCORE offers free online workshops, live and recorded, covering many topics such as:

  • End the Year in Good Legal Standing
  • A Practical Approach to Small Business Budgeting
  • What Small Businesses Need to Know About Cybersecurity
  • 5 Easy Marketing Tricks to Grow Your Business
  • Funding Options for Veteran Entrepreneurs

To attend, you simply register online for any of the webinars that interest you.

Small Business Expo

The Small Business Expo is dedicated to helping small businesses thrive across the nation. SBE hosts annual shows in 17 major U.S. cities. The shows include exhibitions, workshops, seminars, and product demonstrations. You need not physically attend to participate in live webinars, and recorded webinars are available on demand. A typical show hosts more than 25 free workshops where you can learn business-critical skills and strategies to grow your company. Some examples include:

  • Managing Credit for Business Success
  • Linking HR to Your Business Strategy
  • Franchising 101
  • Artificial Intelligence for Business
  • 3 Super Powers of CRM

Bizlaunch

Founded in 2003 by Andrew Patricio, Bizlaunch teaches entrepreneurs how to build profitable businesses. It hosts online webinars, workshops, and seminars to mentor small business owners. Recent webinar offerings include:

  • Low-Cost and No-Cost Marketing Tools You Can Use to Grow Your Business
  • How to Use Offline and Online Networking to Grow Your Business
  • How to Build a Laser-Focused Strategy to Grow Your Business
  • Franchising — What You Need to Know
  • The Secrets of Writing a Great Business Plan

Conclusion

The webinar providers we’ve listed here are but a small sample of what is available nationwide. All they require is your time and attention. If you are looking to grow your company, you’ll find webinars an invaluable resource that can save you from many rookie mistakes.

Speaking of growing your company, IOU Financial stands ready to finance your growth with business loans up to $500,000 featuring instant pre-approval and fast 1-to-2-day funding. Our loans are quick, flexible, and convenient, with affordable rates, fixed loan payments, no upfront costs, and available loan renewals. Contact us today!

Be a Better Leader — 9 Podcasts to Listen to

As a business owner, you face many conflicting forces. For example, there is the pressure to be the best business leader you can be versus the need to work 26 hours a day growing your business. One way to resolve this conflict is through podcast listening. The beauty of a podcast is that you can listen while driving to work, eating lunch, or performing some mindless chore. By carefully selecting which podcasts to audit, you can gain insights on leadership topics that will help you become a more effective businessperson. What follows is a list of some of the best leadership podcasts for your listening pleasure:

  1. The Go-Giver, Host Bob Burg:

    This podcast grew out of the bestselling book of the same name. Its central thesis concerns ways to provide value to your customers and others, and how this can increase your profits. It’s also a fulfilling way to live. Each episode brings you a useful short interview with a business leader or expert that will make a valuable point you can apply to yourself and your business.

  2. Leaders in the Trenches, Host Gene Hammet:

    The host has interesting background, having built and lost the business he always wanted. He knows how to delve deep into business discussions with top leaders who can share successful strategies. It’s a fascinating way to learn more about marketing, sales, and leadership.

  3. Online Marketing Made Easy, Host Amy Porterfield:

    The host is a powerhouse media influencer who has helped many entrepreneurs build their online businesses. She has been featured on cable and in business magazines as a marketing expert with insights on how to overcome obstacles holding back your business.

  4. The Nice Guys on Business, Host Doug Sandler:

    This is a wide-ranging podcast that touches on a variety of subjects gleaned from real life. It casts a truthful light on the good and the bad of running your own business, with advice on how to use your positive instincts to inspire yourself and others to do their best. The podcast is a welcome respite from the toxic attitudes currently poisoning our society.

  5. Mixergy, Host Andrew Warner:

    This is a podcast featuring startup stories of business owners and entrepreneurs. Every episode includes an interview with a successful business leader who describes how they grew their businesses and overcame failure. New episodes appear three to four times each week.

  6. Leadership and Loyalty, Host Dov Baron:

    Here is a refreshing podcast that teaches you to be fearlessly honest when need be, yet to temper that honesty with emotional intelligence. The host interviews leaders and authors across a wide range of organizations but who share strong ideas on how to inspire loyalty.

  7. This Is Your Life, Host Michael Hyatt:

    This podcasts offers specific and useful advice to driven entrepreneurs on how to succeed in business and in life. He gets down to brass tacks on how to set and achieve your goals while encouraging productivity and loyalty from others.

  8. Masters of Scale, Host Reid Hoffman:

    The host of this podcast is the co-founder of LinkedIn and knows a thing or two about building businesses from the ground up. He features discussions with founders of popular companies, including Starbucks and the Huffington Post.

  9. Coaching for Leaders, Host Dave Stachowiaki:

    The host understands that you must learn leadership skills — it isn’t inherited (or inherent). Experts come onto the podcast to offer advice you can translate into concrete action. Every month, the podcast devotes one episode to answering listener question. You can become a free subscriber to the host’s weekly leadership program.

These podcasts should get you off to a good start. Once you begin listening, you’ll be hooked. Podcasts have become one the most valuable tools for the dissemination of information in today’s fast-paced environment. Listening to a few can make a big difference in your company’s success and in your personal life.