Small businesses generate more than half of the
U.S.'s $10 TRILLION annual GDP, employ more than half of the private
workforce and create two thirds of all new jobs. According to Chad Moutray,
Ph.D., Chief Economist for the SBA's Office of Advocacy, small businesses
are the economic engine of the U.S. economy. For most entrepreneurs, taxes
reduce their companies' cash flow - the money businesses need to expand,
buy more equipment, and hire more workers.
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To promote continued innovation, and
stimulate the economy, the Federal government has decided to help
entrepreneurs and companies keep more of their resources. Now,
small business owners who purchase qualifying equipment and
off-the-shelf software for expansion can get assistance through an
increase in the expensing limits from current law $25,000 to
$100,000. By quadrupling the deduction allowed for capital items,
small and young companies will be able to spend more on the
foundation of their enterprise.* |
There is more good news. Jim Blasingame, small business
expert and award-winning host of The Small Business Advocate Show says , "For
most small businesses it would be hard to find a working capital use that
delivers a greater return on investment than information technology."
Small business IT spending will reach $31.7 billion this year as estimated
by AMI Partners. The growth in IT spending is fueled by the need to
upgrade capability to meet current market demand and prepare for the
economic recovery.
Five key business issues where technology can make an impact:
- Increase your consumer loyalty by expanding your customer's
options.
Customer loyalty is the heart of business success, and it often
results from having a greater understanding of what customers want and
need. For example:
- By harnessing Customer Relationship Management software or
Business Intelligence tools, small businesses can more
successfully identify, develop and retain customers.
- Adding customer care features to a Web site is also a great way
for small business sites to give customers options for helping
themselves. As an example, offer instant access to a live support
representative via a chat box or instant messaging.
- Raise your employee productivity and morale.
Enabling your workers to focus their time on tasks-whether in the
office or on the road- will deliver immediate bottom-line results.
Additionally, well-managed tele-working provides flexibility while
creating trust with your employees.
Some examples:
- New wireless technologies can make out bound sales staff,
off-site workers or even employees on the factory floor more
productive by giving them the tools to access company information
wherever they are.
- When an employee needs to stay home for personal or family
needs, a notebook PC is an option that allows for great
flexibility.
- Increase your security and protect your vital records.
- For most small businesses, the information on its computers-such
as customer lists and financial data-is irreplaceable.
- Business recovery solutions, emergency response management
systems, self-healing software and hardware can help small
businesses minimize potential security risks.
- Implementing an off site back-up solution can secure your vital
data and contribute to your company's continuity.
- Enhance your operating efficiency with integrated financial
systems.
One of the most important things any small business can do is to
produce accurate and timely financial records of recent operating
history. As your business grows, integrating its financial software
with other systems warrants serious consideration. For example:
- Accounting can be part of a larger software solution that tracks
orders and inventory more efficiently and assists in invoicing.
- By integrating the general ledger functions and report writing
capability with the sales, purchasing, and fulfillment processes
your business functions as a cohesive whole and is capable of
further growth.
- Enhance your growth.
Getting involved in e-business by using the power of the Internet is
an excellent opportunity for growth. For example:
- A Company with a brochure Web site can evolve to start selling
or servicing its customers online.
- Businesses can even set up an extranet to share information with
its key trading partners, reducing the time it takes to fill
orders received online.
Small businesses often have too many things to do and not enough people
to do them. Technology effectively offers a third hand freeing you up to
focus on the important things. By using your tax incentive to expand a
system you already have, or add new solutions, you are making a smart
investment in your future.
* AQBC Corporation makes no claim that any purchase
will or will not qualify under the terms of this legislation. Businesses
should consult with their legal, accounting or financial advisor(s) to
determine if they qualify for the benefits enacted by this legislation.
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