Internet Tip of the Week - by Bob Osgoodby
Back To BusinessI learned a long time ago, you shouldn’t discuss politics or
religion as you immediately polarize your readers, so I don’t.
But, now that the elections and the uncertainty of policy changes
are over, it is time to get back to business.The majority of small businesses are either a sole proprietorship
or a Chapter “S” Corporation. Both are taxed as individuals and
any net earnings are added to their other taxable income. In the
past this has hurt the small business person and the tax cuts
which will be effective for this calendar year should encourage
more people to venture forth in this arena.What never ceases to amaze me is that many small business owners
don’t take advantage of the deductible expenses to which they are
entitled. If you work out of your home and have a home office,
you can take a percentage of your household expenses as a
deduction. The same holds true for your vehicle costs and
maintenance.Direct expenses such as supplies or advertising are 100%
deductible. You only have a short time to get your act together
for this year. If you don’t have one, you should definitely get
an accountant who is experienced in tax law to give you advice.Many entrepreneurs have cut back on their advertising because of
the uncertainty of the times, and that was a mistake. Even if the
tax cuts were rolled back, they are in effect for this calendar
(fiscal) year. Advertising is a deductible expense and will
reduce your taxable income, whether the tax cuts remain in effect
or are repealed. Think about it – the higher the tax rates, the
more you need the deductions.I met with a client this last week about advertising his web
site. He has a very good site that is right on the money and has
a high rate of closure. But his hits on the site are way below
par. I compared that to a beautiful billboard, that if seen,
would generate significant business. But if no one sees it, he
is wasting his money – it would be like having his sign in the
middle of the forest that only an occasional hiker would stumble
upon.The first advice I gave him was to put the address (URL) of his
website on his business card. Many people don’t have the time for
a full blown sales pitch, but might go his web site when they dohave more time. In point of fact he should have his URL on all of
his advertising. He should also have someone knowledgeable in
Search Engine Strategy optimize his site.Not taking advantage of the low cost advertising opportunities
available on the web such as newsletters targeted to his
potential clients, is a huge mistake. This is one of the more
productive ways to get his message out to a large number of
people at a modest cost.Many people did "veg" out during the last month or so, and every
day that went by, they lost potential clients. Many people do
cut back on advertising during their slow months. If you do,
business will only get slower. Well folks, it is time to face
reality and get back to business.-----
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