Before we talk about some tax planning tips to give your business a new look this summer, I first want to say that I hope your Memorial Day weekend was special. Even though this Minnesota business owner had some work to do, a quiet office is my friend. In thinking about the spirit of this past weekend, I was reminded of how very grateful I am for our servicemen and women who made the ultimate sacrifice.
May all of us live our lives as a reflection of their honor and the gifts we too easily take for granted.
Let us never take those freedoms as “automatic.”
And as Memorial day also serves to remind us, summer is finally here.
But, lest you think we just sip margaritas by the pool all day after tax season… What we really spend a lot of time doing in the summer is sitting down with Minnesota business owners to carefully analyze their tax situation — BEFORE the winter strikes and the moves become much more limited.
This is called “tax planning,” an essential move to get the maximum tax savings possible. And with what *might* be coming down the pike from Congress, wisdom says it’s time to get your ducks in a row and plan for what lies ahead. If you’re ready for some tax planning tips, let’s chat:
These sort of issues are what we specialize in worrying all about — so you don’t have to. Because YOU have to keep your head in the bigger picture.
Some thoughts for that below…
5 Tax Planning Tips to Give Your Minnesota Business a New Look This Summer
“If you think you are too small to be effective, you have never been in the dark with a mosquito.” – Betty Reese
Entrepreneurs know that hard work and a great idea don’t guarantee success. Fortunately, most of them also know that failure isn’t final — almost every successful business owner has crashed and burned at least once in their career.
One of the best ways to pick yourself and your Hennepin County business back up off the ground is to take a fresh look at things you “thought” were set in stone. Here are some strategies that could give your business a fresh lease on life this summer…
Tax Planning Tip #1: Re-target your market.
In the heat of start-up passion, entrepreneurs frequently try to interest too broad a market: “Everyone will want to buy this!” The result: getting lost in the crowd. The more closely you define your market, the more success you’ll experience.
Tax Planning Tip #2: Re-examine your price.
Price is obviously supremely important. See how you can lower your overhead or cut production costs. Perhaps there’s a new way to package your products, so that your average transaction value can go up?
Tax Planning Tip #3: Identify and push your best product.
Focus on what works. If your hot product is coffee cups, look for ways to highlight and expand that niche instead of veering into new territory. How about different colors and holders for those cups?
Tax Planning Tip #4: Make your marketing materials more memorable.
Emphasize the benefits — SPECIFICALLY how features of your product or service will improve business or the quality of life for your customer. And scrutinize your advertising. Using big media is not always the answer, especially when you have narrowed your market. Don’t overlook narrowly-targeted marketing efforts or joint promotions.
Tax Planning Tip #5: Keep promoting.
Make sure your message sinks in. Find affordable ways to reach your target market, and use these avenues as often as you can. Try social advertising!
These are just a few ideas to get you started. There may be longer conversations to be had. And that’s what I’m here for.
To getting things done,
The Business Advisors