With the economy beginning to hum again, 2014 is a great time to start up a new business. Of course, with a small business, every penny counts. We hope for the best but plan for the worst. Finding ways to keep your money in your pocket is a good way to stave off the worst that can happen in a small business.
Look For The Breaks
Both federal and state governments offer tax breaks and incentives for small business ownership. Depending on the need, some of these can be significant. For example, Kentucky offers a small business tax credit of up to $5,000. This is a nonrefundable credit, meaning you can deduct it from your state taxes but, if you make no money in that year, you will not get $5,000 back. There is an application process and the fund is capped at $3,000,000 per fiscal year statewide.
Pay Yourself First
Novelist Douglas Coupland said lottery tickets are a surtax on desperation. Do not let yourself become desperate and make mistakes, relying on chance to get you out. Make sure your business is, at the very least, taking care of you. Wells Fargo Bank recommends creating a budget with your salary or savings amount as an expense.
Know Your Worth
If you are going to pay yourself, then you need to know how much to earn. As small business owners, we repair the broken, clean the dirty and add the unaccounted. This is where a personal break-even analysis needs to be made. If your sales skills allow you to bring in new contracts worth $100,000, then doing the job of an $8 per hour employee is not cost efficient. If you are the lead baker, then it is your job to bake. Anything else may be diminishing your net return. Look at the U.S. Bureau of Labor Statistics for salary amounts broken down by state and industry.
Market On The Cheap
About two-thirds of small businesses have less than $2,000 allocated to its marketing and advertising budget. Social media marketing is a good way to get your message out without breaking the bank. Since your business is new, people you know will actually want to hear how things are progressing. Use Facebook and LinkedIn to do your marketing in a conversational manner, inexpensively.
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LEXINGTON, Ky., (Feb. 14, 2017) – Kentucky Small Business Development Center is seeking nominations for the 2017 Pacesetter Awards. The recognition program was created to honor high performing, second-stage businesses that are changing Kentucky’s economic landscape. The deadline to submit nominations is March 15.
KSBDC encourages small businesses that meet the following minimum qualifications to apply:
· Privately held
· In business for three or more years
· Employ six or more full-time employees, including the owner
· Annual sales meet or exceed $500,000
· Located and headquartered in Kentucky
·Demonstrate the intent and capacity to grow evidenced by the judging criteria.
Pacesetters will be selected based on two or more of the following criteria:
· Growth in the number of employees
·Increase in sales and/or unit volume
· Innovativeness of the product or service
·Response to adversity
·Employee engagement and commitment
·Contributions by the nominee to aid community-oriented projects
Pacesetters will be recognized at the Kentucky Celebrates Small Business event held at the Capitol rotunda in Frankfort during the first week of May. Each honoree will receive an award inscribed with the business’s name and a promotional video for their own use that highlights the business. In addition, KSBDC will send a customized press release announcing the award to local media and trade associations. Honorees are given the rights to use the Kentucky Pacesetter logo and event photographs in promoting their business.
Anyone may submit nominations, including third parties associated with an eligible second-stage business. A business may self-nominate by completing the required form. Winners will be notified by March 27. Full nomination requirements and the application are online at https://www.ksbdc.org/kentucky-pacesetters1 .
The Kentucky Small Business Development Center, part of the University of Kentucky College of Agriculture, Food and Environment, is a network of 12 offices located throughout the state. The center helps existing and start-up businesses succeed by offering high quality, in-depth and hands-on services. KSBDC is a partner program with the U.S. Small Business Administration. More information on KSBDC services can be found on their website, http://www.ksbdc.org/ .
Writer: Roberta Meisel, 859-257-0104
UK College of Agriculture, Food and Environment, through its land-grant mission, reaches across the commonwealth with teaching, research and extension to enhance the lives of Kentuckians.