Tax Deduction Season - Don’t Miss Available Small Business Deductions

Small business owners recognize that take home cash is critical for long-term success. And one of the surest ways to take home as much cash as possible is to maximize tax deductions at IRS filing time.

Deductions abound, but the options vary depending on the type of business. For example, a home-based operation qualifies for certain deductions that are not available for an individual overall.

Everyone is aware of the basic deductibles such as office supplies and legal fees. However, many are unaware that educational expenses, business entertainment and even certain travel costs are deductible as well.

In addition, when an at-home operation is involved, you can deduct that portion of your home related to the business operations by calculating a square foot percentage devoted to the business space then appropriating proportioned costs for everything from heat and lights to taxes.

If you have not documented expenses for this past year, then you should begin to position things now so that you will be able to keep more of your money next year.

For more on potential tax deductions, go to:

http://www.baltimoresun.com/business/bal-bz.ym.marksjarvis18feb18,0,4269316.story?coll=bal-business-headlines

Purchasing or Expanding Your Business – Consider the SBA, CDC/504 Loan

Perhaps you already own a small business but a larger facility has become available that would enable substantial growth. Or maybe your operation expandable because it fits nicely with another entity that recently hit the sales market.

In either case, though you may be interested cash flow could be an issue with such a purchase consideration. If such is the case for you but you see the new venture as a necessary business step, you may want to consider the Small Business Association, CDC/504 Loan option.

The CDC/504 Loan program is for "bricks and mortar" type financing. The loan provides long-term, fixed-rate financing for major fixed assets such as land, buildings or equipment.

The SBA option demands certain down payment equity options from the owner. It also works to create financing from two other sources in addition to the equity contribution made by the small business owner.

For more on the 504 Program, including its borrowing limitations, see:

http://www.chron.com/disp/story.mpl/business/4561199.html

AIG Small Business Launches New Service Products

AIG Small Business has announced a new branch of services available for small business owners and their employees.

The new subsidiary branch, called AIG Edge SM, features an assortment of insurance and non-insurance related products and services. AIG Edge SM will be available through the AIG Small Business Web site (www.aigsmallbusiness.com).

The new AIG small business portal offers links to a wide array of services through companies such as Newtek Business Services, Inc., Spot Runner, Robin Cohn and Company, and to many other existing AIG products and services.

For more on AIG Edge SM and a clear explanation of the services available with each of the above-mentioned links, please see:

Sometimes, To Start a Small Business You May Just Want to Start

Ingrid Soderberg, owner and operator of Black Sheep Baby, possesses the requisite degree in small-business management. But when it comes to the notion of creating a business plan and a budget, Soderberg states she has simply been "too busy launching and running her own small business" to worry about such things as plans and marketing.

Though her no-frill clothing company was founded in March 2005, Soderberg states that she will only be seeking out investors after the holidays. But having said that, the owner notes that she has weathered many of the normal small-business challenges including piling up business expenses on her personal credit cards.

Her husband, a musician has helped design the clothes and the company logo. Using a website to promote her product, one that features the provocative logo of a black sheep with a nose ring, Soderberg indicates revenue will likely reach $10,000 to $15,000 from sales over the last half of 2006.

For more on the many pitfalls of beginning without a plan, as well as the benefits in just getting started, see:
http://www.startribune.com/535/story/864433.html

Plan Accordingly, Sensibly, and With Time Considerations

Let’s face it, everyone who starts a business has an image of success. Their concept will be the next hot button item on the market with future riches a certainty, perhaps even immediately.

And many think they must be the first on to the market to have any chance of such success. The notion is that to win, you have to be first.

Some basic understanding of product lines indicates a slightly different viewpoint. Though Atari may have been one of the front runners in gaming and Radio Shack an early player in the personal computer market, the winners in both arenas long term are companies with vastly different names.

Gluing one’s foot to the gas pedal is more likely to lead to a crash and burn then the success most seek. Business is first and foremost about timing but it is also critical to have the right product at the time that can also be sustained over time.

For a sound view on the need for cautionary procedures, see:

http://seattlepi.nwsource.com/business/292691_schreter17.html

Colorado Venture Financing Booming

In Colorado, venture financing is continuing an exceptionally aggressive path.

Coming off 2005 when companies raised $664 million in funds, corporations in Colorado are seeing yet another strong year in 2006. With $195 million in venture financing coming in during the third quarter, Colorado firms have raised more than $365 million in 2006.

After what was considered a rather disappointing start to 2006, the third quarter numbers that totaled nearly $200 million represent the state’s biggest three month period since 2002. The improved figures put the state in a position to surpass the totals of 2003 and 2004, though the numbers will likely trail that of ‘05 and the incredible 2000 year when Colorado companies raised $3.4 billion.

The key component of the state's third-quarter numbers came from the deal with Adam Aircraft Industries, a Centennial Airport- based airplane developer. That $93 million deal represents almost half of the entire three month haul.

For more on venture financing in Colorado, see:
http://www.denverpost.com/business/ci_4530947

Seeking Out Small Business Start-Up Funds

Starting a small business definitely has some inherent risks - especially since many start up enterprises are funded initially from the personal assets of the owner. Though many are willing to put up funds out of the gate, many more have to open a line of credit against their current assets to be able to get their venture going.

For those seeking small amounts of capital to start their businesses, a home equity loan can provide some basic start up costs. The beauty of such an option is that such a loan can be set up well in advance of a person making the shift from their current job to being their own boss.

Loans are also available from the U.S. Small Business Administration for those seeking to borrow less than $100,000. The SBA works with nonprofit organizations to offer a product referred to as a microloan.

For more on small business start-up funding options:

http://www.phillyburbs.com/pb-dyn/news/147-10052006-723052.html

Congress Attempting to Encourage More Small Business Export Financing

In an effort to improve the small business foreign country export options, Congress is acting for the second time in four years to foster changes in the Export-Import Bank of the United States finance operations. A bill recently passed by the House and in consideration by the Senate, seeks to create a new small-business division within the Bank entity.

The new division would have the power to approve business loans as well as provide insurance packages of up to $10 million for businesses seeking assistance. The primary function of the Export-Import Bank is to give American companies some assistance as they seek to compete with foreign exporters, some that are extensively subsidized.

With reports that every $1 billion in exports equates to about 14,000 domestic jobs, it is easy to see why the government should actively get involved in helping small businesses compete. The new division will attempt to ensure that small American companies will be able to do just that, compete globally and do so even in those places where business operations can be a very risky, perhaps even dangerous venture.

For more on the changes at Ex-Im Bank, see:

http://www.mercurynews.com/mld/mercurynews/
news/breaking_news/15489184.htm