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What President Obama’s Tax Bill Means For Small Business
February 1, 2010 by admin
President Obama today released his $3.8 trillion FY11 federal budget proposal with $17 billion in Small Business Administration 7(a) loan guarantees to help business owners increase access to capital.
We will continue, for example, to do what it takes to create jobs. That’s reflected in my budget; it’s essential,” Obama said in a released statement
The president’s budget package includes $53 billion in tax cuts and $50 billion job-creating measures. Among them are small-business tax cuts, green technology investments and transportation infrastructure programs. It also includes $30 billion in incentives for small businesses that hire new workers or increase wages.
The Obama administration is seeking an increase in the 7(a) loan guarantees to $5 million, up from $2 million in FY10.
The administration is also proposing to allow companies to immediately deduct 50 percent of their qualifying investments, another aspect of his job creation plan. The budget proposal would also allow small businesses to write off up to $250,000 of qualified investments in 2008 and 2009, a provision that would cut taxes by more than $1 billion in 2009 and 2010.
And perhaps one of the most key provisions in the administration’s plan is to permanently eliminate small business capital gains by excluding from taxation 75 percent of the capital gains for investors in small businesses who hold their investments for five years. This provision will save small business owners nearly $1 billion over 10 years. The president’s budget proposes to completely eliminate the capital gains tax on small business stock.
There’s a one-year extension of the Making Work Pay tax breaks, originally delivered as a part of last year’s stimulus package, that will cost $22 billion. The credit resulted in slightly higher paychecks for 110 million families, according to the White House. The budget would make permanent tax cuts passed during the Bush administration for all except high-income households making more than $250,000 a year.
But not everyone is convinced that the White House budget proposal will be good for business.
Senate Minority Leader Mitch McConnell, R-Ky., told CNN on Sunday that Obama’s budget would raise taxes, especially for some small business owners. “If you’re a small business and pay taxes as an individual taxpayer, your taxes are going up,” McConnell said. “So is that a great environment in which to expand employment? I think the answer is no.”
The debate has just begun.
What does a hardworking, underpaid entrepreneur have to be thankful for?
November 23, 2009 by admin
I know what you’re thinking…
You’re a small business owner. You work all of the time and aren’t nearly as much fun as you used to be.
Your business seems to have more valleys than peaks and it’s becoming more and more difficult to remember why you thought this was going to be a good idea.
And now the world wants you to be thankful? For what?
I think that every business owner has felt this way at one point or another, but I know of at least one thing that every entrepreneur can be thankful for — VISION.
Entrepreneurs have a vision, a goal in sight. And we’re willing to work it, breathe it, and live it so that it has a chance to come to life.
If you’re like me, you’ve had several chances this year to do other things. And you, like me, may have wanted to kick yourself at times, wondering why on earth you didn’t grab hold of some of those opportunities.
But the truth of the matter is that you didn’t go for them because those so called “opportunities” were not a part of your vision. And, while they may have been perfect for someone, for you, they simply didn’t make sense.
So, my fellow entrepreneurs, when you consider what you have to be thankful for his year, don’t forget to give thanks for your own unique vision — and for the courage and strength you exhibit every day as you grow your business.
Wow… that’s three things you can be thankful for! Join the discussion and write a few more below…
Hanging Out With My Market
October 26, 2009 by admin
I spent most of last week at the annual conference of the American Association of Retired Persons (AARP).
While I’m not a member yet, I had a ball! And, more importantly, my attendance provided a remarkable opportunity to hang out with members of one of my major markets — seniors. As you may know, a lot of writing is geared toward men and women who are in their in their golden years.
I was able to attend sessions with these folks and could determine some of what worries them, what brings them joy, what interests them, and what makes them laugh.
I was also able to walk the exhibit floor and got a really clear idea of what companies captured their attention and which didn’t. For example, I learned that regardless of age, women love jewelry! And, more seriously, I learned that health care is on our seniors’ minds now more than ever.
I encourage you to do what you can to get up close and personal with your customers and the people you are trying to reach. Nothing beats spending a few days with them to figure out how to position your products and services in a manner that will make them take notice.
“How To” Conference for Small, Minority and Disadvantaged Businesses
August 17, 2009 by admin
If you’re…
How “Outrageous” Can You Get?
August 16, 2009 by admin
Earlier this week I attended an event that featured Bill Glazer of Glazer-Kennedy Insider Circle as a speaker and, boy, am I glad I did!
Mr. Glazer is one of the most successful marketing gurus in the world. He’s teamed with the legendary Dan Kennedy to provide advice to small businesses all over the country, in every industry imaginable, and the opportunity to hear him speak locally was a rare treat.
Glazer’s very insightful presentation included a discussion of what he introduced as the seven steps to successful selling. In a nutshell, they are…
1. Sell to someone differently. Glazer suggested that business owners expand their borders and stated that the Internet makes this very easy to do. He also encouraged people to find a niche, and emphasized the fact that advertising yourself as a specialist usually allows you to charge more for your work.
2. Sell differently. He said that you have to make it OK for people to purchase what you have. The government’s recent “Cash for Clunkers” program is a good example of this principle at work. Suddenly, it was OK to purchase cars again.
3. Sell something different. The point is to be responsive to your market and adjust what you offer to fit what people want to buy.
4. Create more value. In tough economic times like these, businesses need to be especially aware of their need to give more for less and make customers feel as if they’re getting a great deal.
5. Have a strategic status. This helpful tip suggests that you position yourself as an authority, an expert — and not wait for anyone to do that for you. For example, there as a woman in the audience who sold real estate. By following this tip, she would quickly assume the title of “the best woman real estate agent in her county.” “Don’t wait for others to give you the status”, explained Glazer, “just take it!”
6. Association. Zig Ziglar said that if you hang around nine dead, broke people, you’re soon likely to be the tenth one. Glazer expanded this thought to emphasize how very important it is to associate only with people who support your vision and challenge you to grow.
7. Develop a of Good Direct Response Marketing System. “Everybody’s bored and overwhelmed,” said Glazer. Therefore, according to Glazer, our marketing materials should be “outrageous” if they are to get the attention we’re after.
In addition to these seven tips, Glazer provided additional insights and encouragement and as one of the 100+ entrepreneurs in the room, I can honestly say that attending this presentation was time well spent.
If you ever have an opportunity to hear Bill Glazer speak, I encourage you to do so. In the meanwhile, you may want to get a copy of his latest book, “Outrageous Advertising that’s Outrageously Successful.” Just look for a cover with a man wearing a straight jacket and a crazy expression on his face and that will be it!
How’s that for outrageous? LOL!