According to NYU marketing professor Adam Alter, a major downfall of aspiring small business owners is unplanned expenses. They are the biggest reasons why many small business owners find themselves spiral into debt, and why they often fail to get their businesses permanently off the ground. There are ways to expand your budget and capital as a small business owner, and ways to save money. But many aren?t aware of the basic methods of raising capital, or are too afraid to take out a loan. There are many ways that you can ensure that your small business budget is what it needs to be. You just need to be business-savvy about it.
Budgeting: Know Where Your Money Is Going
The important thing about budgeting, as funding experts will tell you, is knowing where your money will go before you spend it. For one thing, you can expect to spend a lot of money on business equipment. This equipment is often technological, with 51% of small businesses spending money on replacing old equipment or maintaining IT infrastructures. Of course, employee wages make up another large part of small business spending, at about 19.4%. Inventory and rent usually come in at the second and third largest parts of spending, making up 7.7% and 4.6%, respectively. Finally, 44.6% of small business plan on investing in customer acquisition to expand their businesses.
Tax Deductions: What You Can Do
Unsecured business loans are a way to gain money. Conversely, one of the best ways to save money is by taking advantage of tax deductions. Many of the costs racked up during the first year of businesses are tax deductible ? up to $5,000 worth. Furthermore, you can deduct money related to business equipment; and that equipment includes computer, copiers, fax machines, and phone systems. That number can reach up t $102,000 in tax deductions. Small businesses are important to the American economy, and the government wants you to succeed.
Unsecured Business Loans: For When It?s Time To Raise Capital
Small business loans may be intimidating at first. But the fact is that it?s just not realistic to expect that all of your capital will be raised without loans. Unsecured business loans are a way to raise money quickly and with fewer restrictions than other loans. These working capital loans for small businesses are often dispensed in a short period of time, sometimes within two business days. And in these cases, you often work with a direct lender. A direct lender, unlike a broker, is concerned with whether or not you can pay them back on time, and about your business in general. It?s a personal touch that involves actual human care. Furthermore, by using working capital loans for small business, you can ensure that your budget won?t get out of control, and pay it back once your business takes off!