Addressing the Biggest Challenges for Small Biz Owners

Posted on: November 30, 2017 by Goodrich & Watson

The first few years of operation are always the most challenging for small business owners. Whether you’re trying to grow the business, find dedicated employees, or manage the ever-changing market fluctuations, there is no shortage of challenges to overcome. In this article, we’ll dive deeper into some of the most common hurdles that you have faced, or are likely to encounter sometime in your career. To combat these issues, protect your business with a comprehensive Newport News Commercial General Liability policy.

Healthcare.

The new presidential administration means a lot of changes on the horizon for healthcare. The health and wellbeing of your employees is critical, and so is managing finances. If you offer healthcare, or you’re required to, this can be a major hurdle to overcome in terms of budget and what you can give to your hardworking employees.

Federal income tax.

Under current U.S. law, the corporate tax rate is currently 15% on the first $50,000 of taxable income. Expect 25% tax rate on the next $25,000, and a whopping 35% tax on income over $10 million. Knowing your state’s tax rate is crucial for minimizing the costly damage of paying them.

Economy.

There’s no way of predicting how the economy is going to fluctuate. There are so many different factors that affect the highs and lows, and not even Wall Street executives can foresee the future. With a small budget and even tighter margins, this is a major concern for small business owners.

Taxes.

If your business makes less than $5 million, you’re allowed to use cash accounting. This is in stark contrast to the more traditional (and complicated) accrual method. The National Federation of Independent Business states that when you invest in your business, Section 179 allows you to instantly deduct the cost of that investment. Therefore, that investment-cost can be re-invested further into your company.

If your business is based out of your home, be sure to take advantage of the home office deductions to really save your bottom line.

Employee turnover.

It’s a difficult task to manage, but hiring employees is a huge part of a successful business. Finding quality candidates reduces turnover, eliminates training and advertising costs, improves morale and contributes to your bottom line.

Growth.

It’s every owner’s dream to grow a successful business. However, growing too quickly and without the proper processes in place dooms a business. Never sacrifice quality and service to grow. On the same token, focus on implementing the necessary procedures to keep up with demand instead of falling short.

About Goodrich & Watson

You can trust Goodrich & Watson with all of your home-insurance needs. We know your home is your greatest asset, and want to protect it with insurance you can trust. For more information, contact us at (757) 591-2032.

Posted in: blog Commercial Insurance General Liability Insurance Newport News

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*

eighteen − 4 =