As part of our series on celebrating small business owners, we pulled some of our best tips for seeking to improve your bottom line from our e-booklet. Whether through a series of small changes or by making one large improvement, every business can potentially improve their profitability. Implementing the following strategies is a great place to start.
Reduce Unemployment Costs
When increasing the size of your company, consider whether to use outside independent contractors or hire employees. Consult your tax advisor to determine taxable consequences of each. As an employer, consider that you will be responsible for unemployment benefits, so do not be afraid to monitor and fight claims as necessary.
Pay Yourself First
Paying yourself first is especially important. Most employers have trouble doing this due to the financial strain. It can, however, make retirement and tax management much easier. Owners that are self-employed or use a sub chapter S corporate structure, can have the profit for the year be charged as income for that tax year. Also, by having the owner pay themselves a salary, it will help with qualification for social security in retirement.
Market Through Social Media
Marketing is critical for creating relationships with potential clients and fostering those with current clients. Nowadays, social media is at the forefront so be sure to use it to its advantage. Not only are social platforms capable of driving conversion rates, site traffic and brand loyalty, but they are some of the most cost-effective mediums for reaching consumers. With regular content, posts and engagement, social platforms can have a huge impact at little cost.
Every business has its own set of needs, so be sure to speak with your financial advisor to determine which strategies are right for you. The team at Trost Financial Consulting is here to help craft a strategy for your individual business needs. Contact us today!