A Somerset Small Business Accountant Suggests You Take A New Look at Your Business in 2013

A Somerset Small Business Accountant Suggests You Take A New Look at Your Business in 2013

November 27, 2012

Scattershooting through my Somerset Area tax service office tasks today, still digesting all of that turkey — and preparing for what will prove to be one of the busiest tax seasons in recent memory, around here.

That’s not just because of the word-of-mouth growing around our business here at Team Clark — for which we’re quite grateful, as I do hope my blogposts and emails continue to provoke good discussion and real, profitable moves by business owners.

But, actually, it’s also because of the enormity of the changes coming for 2013, for business owners and for families. Enough so that we’re working hard with our individual clients, and Somerset Area business owners THIS month to make some pro-active moves.

For instance:
* Paying an additional mortgage payment to claim more of a perhaps-expiring mortgage interest deduction
* Sending in an early tuition payment to leverage an almost-certainly-expiring American Opportunity tax credit
* Exploring a donor-assisted fund to harness a perhaps-reduced charitable gift deduction
* and much more.

If you want to discuss these (or other moves), call us quickly: 606-678-4372.

Further, there are some things business owners, specifically, should consider…
Pay out a dividend. With the dividend-tax rate up in the air, if you are organized as a C-corp (or were a C-corp, are but now in Subchapter S format) you should consider paying dividends before year end.

Invest in equipment, even now.
 Both “bonus” and “Section 179” depreciation deductions are set to drop sharply in 2013. The combined depreciation on $190,000 of qualified purchases of furniture, fixtures and equipment is about $168,000 this year but less than $49,000 next year.

Again, call if you want to go deeper on your situation.

But leaving tax issues aside, the BEST thing you can do is to grow your business in 2013, despite the odds. Here are some ideas…

A Somerset Area Small Business Accountant Suggests You Take A New Look at Your Business in 2013
Entrepreneurs know that hard work and a great idea don’t guarantee success. Fortunately, most of them also know that failure isn’t final–almost every successful business owner client of mine has crashed and burned at least once in his or her career.

So if your first attempt to build a business didn’t work out as well as you’d expected, remember that the key to success is not giving up. Here are some strategies to give your business a fresh lease on life, come 2013:

• Re-target your market.
 In the heat of start-up passion, entrepreneurs frequently try to interest too broad a market: “Everyone will want to buy this!” The result: getting lost in the crowd. The closer you define your market, the more success you will experience.

• Re-examine your price. 
Price is important. See how you can lower your overhead or cut production costs. Perhaps there’s a new way to package your products, so that your average transaction value can go up?

• Identify and push your best product. 
Focus on what works. If your hot product is coffee cups, look for ways to highlight and expand that niche instead of veering into new territory. How about different colors and holders for those cups?

• Make your marketing materials more memorable. 
Emphasize the benefits–SPECIFICALLY how features of your product or service will improve business or the quality of life for your customer. And scrutinize your advertising. Using big media is not always the answer, especially when you have narrowed your market. Don’t overlook narrowly-targeted marketing efforts, or joint promotions.

• Keep promoting! Make sure your message sinks in.
 Find affordable ways to reach your target market, and use these avenues as often as you can.

Thanks for your time today — and please feel free to share us with your friends! We thrive on serving our clients as well as they’ve ever been served … and having them say so to their associates.