Owning a small businesses can be daunting due to the fact that, in smaller townships, your main competition may be (more than likely) the last small business: Walmart. Every penny saved is a penny earned, so here’s some tips to cut costs and bring in large returns for a benevolent small business.
Purchases – Saving any or all information regarding purchases is mandatory when it comes towards business survival. This also applies towards what type of business you operate. For example, when I owned my own production company almost all media related purchases for my business were considered a write off. My cell phone kept my business afloat and meals receipts for meetings were saved as it was considered a business expense. During my years of doing background work on film and television shows I was even allowed to use my clothing receipts due to the fact I had to often provide my own clothing for the shoots. Once thing people forget to consider is the fact that as you are an employee of someone, you are in fact a tax write off for the company. As they say “don’t have the player, hate the game” and this useful information will give you the motivation to keep your business afloat.
Travel – Travel is a HUGE asset and is usually the bane of most small businesses success. When driving, flying, or transit SAVE THE RECEIPTS for any related travel. This all adds up in the long run because you would be surprised at how much travel expenses can add up during the year. Spending money to make money is true but when not considering how much is spent on travel unattended might put you in a position whereas ripping up your money and flushing it down the toilet may be a better idea.
Education – Education for your business may also provide a small tax deduction if the education applies to your business. Six digit debt prior to a business does not count as a write off for a current business (sorry hopefuls.) An interesting fact (which may only make you want to consider taking classes to keep your business afloat) is most college graduates have no clue that once they finish years of education in a field (accumulating debt that over time) that almost over 30% of their income is going towards the government in taxes (so get moving.)
Keeping this information in mind should keep a fire under your bum to get moving on your business. Watch your imagination come to life when thinking of ways to cut corners simply for survival.