Year End is approaching - Tax time to think about

As a small business owner hopefully it has been a good year for you.  If so, you should be thinking about how to reduce your tax liability for the year.  This might be by purchasing new equipment and taking advantage of the generous IRS 179 deduction for this year ($139,000 for 2012 vs only $25,000 for 2013). 

All small business owners should be thinking about their retirement.  If you are not contributing to a personal IRA or Roth, you should be.  Other options available to you include Simple IRA, SEP IRA and now even a solo 401K.  Many of these have very high contribution limits that you can save for retirement and at the same time, reduce your income tax liability.  Talked to your accountant for more information on how to setup these programs.

There are also a bunch of new tax law changes for 2013, especially if the fiscal cliff discussions don't get resolved.  The biggest tax change to affect everyone working is the increase of 2% in the payroll tax.  This will go into affect no matter what so expect at least 2% more tax being taken out for social security (or self employment tax) than there was in 2012 (up to the social security limit).  If you have employees, let them know so they are no shocked.

Follow this link for a great article on the changes in taxes for 2013.

http://taxes.about.com/od/deductionscredits/tp/Tax-Provisions-Expiring-At-The-End-Of-2012.htm?nl=1

I hope everyone has a profitable Christmas shopping season.

Tom

www.RoanokeSmallBusiness.org

Chamber Membership Effective Business Strategy

I received a survey today from the American Chamber of Commerce Executives showing the effects on consumers as to businesses belonging to a chamber of commerce.

• When consumers know that a small business is a member of the chamber of commerce, they are 49% more likely to think favorably of the business and 80% more likely to purchase goods and service from the business in the future.
• If a company shows that it is highly involved in it local chamber, consumers are 10% more likely to think the business's products are better than their competitors.
• If a small business is a member of the local chamber of commerce the business enjoys a 49% increase in its consumer favorability rating, a 73% increase in consumer awareness a 68% increase in its local reputation.

Small business have to fight every day with the big box stores and chain accounts.  Membership in local chambers can certainly provide you some additional creditability.  If you take the step to join a chamber be sure you let your customers know since it is obvious from this survey they care, but also get involved with the chamber.  Go to networking events, volunteer, been seen and you will see some great rewards to your business.

Tom
www.RoanokeSmallBusiness.org

Shop Small Business Saturday

Wow, Christmas shopping season is now upon us with Thanksgiving just a week away.  The nice thing about Thanksgiving is that shopping season will be soon be here.  For small business retailers, this is the make or break it time of the year.  A lot of work, but also the time to make money. 

I certainly remember the many many long days, seven days away from Thanksgiving to Christmas.  What a tough miserable time, but then I think of the really lean times in January and February and always grateful for those November/December sales.

With the dates all around Thanksgiving having names, Black Friday and Cyber Monday, it is great to see that small businesses have their own day.  Saturday November 24th is Shop Small Business Saturday.  If you are a small business, take advantage of the marketing opportunities available to you.  For more info go to https://www.americanexpress.com/us/small-business/Shop-Small/

If you are a shopper, please make all efforts to shop a small business on Saturday November 24th and tell them you appreciate that they are here.  Of course, we also want you shopping at small businesses all year long, not just November 24th.

Happy shopping and have a wonderful holiday season.

Tom
www.RoanokeSmallBusiness.org

Thanks to Our Veterans, and Veteran Business Owners

On this Veteran's Day, I want to acknowledge the accomplishments of all veterans.  Having served in the U.S. Army myself, and knowing many of my classmates from VMI who served,  I know the sacrifices that are made by all veterans. I would ask everyone to make a special effort to visit a Veteran Owned Small Business whenever they can and thank a veteran for their service.

For veterans who are considering opening a small business, or currently own a small business, there are many programs and people out there to help you.

In 2013 the SBA will be rolling out a new program called "Boots to Business" which is designed to help train individuals leaving the service and transition to business ownership.  The SBA also has special lending programs such as the Patriot Express program.  For information on Veteran programs go to www.sba.gov/vets

For procurement, www.vetbiz.gov will give you tips on how to do business with the federal government.

In Virginia the SBDC has veteran business resources through the website www.vetbizresourcecenter.com  and the SBDC also sponsors a special small veteran owned business award program.  For information on this go to www.smallbizvetaward.org  And last, the SBDC has a special marketing program for the small veteran business owner called VetBiz, Veteran Owned Business.  This is an identification program that allows you to use the VetBiz logo to advertise to the public you are a veteran owned business.  We have digital logos that can be placed on brochures, website, etc. and also have decals that can be put on your window.  Contact me for more information.

Again thanks to all veterans and let me know if the Roanoke SBDC can help you.

Tom
www.RoanokeSmallBusiness.org

Welcome to the New SBDC Blog

After years of talking about adding a blog, we have finally taken the step to create a small business blog for the Roanoke Small Business Development Center as we launch a new website.  I and others will be talking about what effects or can help small businesses.

Tom
www.RoanokeSmallBusiness.org