Re-Invest The 2018 Tax Cut Into Digital Marketing To Turbocharge Your Bottom Line
The new 2018 tax cut was a hotly debated topic but bodes well for small business owners. It will hopefully enable a much-needed break, helping them compete with larger businesses. The changes went into effect January 1, 2018, so you should be adjusting plans now to take full advantage.
Pass-through businesses get a deduction
The main component of the new bill deals with a change to the tax structure for what are known as pass-through businesses, which account for about 95 percent of U.S businesses – sole proprietorships, partnerships and S corporations are all examples of pass-through businesses.
This deduction is a broad and sweeping benefit to American small businesses. Tax deductions lower your business’s taxable income. Under this new plan, a business’s taxable income would be reduced by 20 percent. So, if your annual business income is $100,000 per year, the IRS would only tax you on $80,000 of it. This will allow business owners to reinvest that saved money back into their businesses by buying new equipment, hiring new workers, and expanding operations and marketing.
Now’s the time to grow your business
This tax break will give small businesses a chance to grow. Some of the savings can be focused on internal objectives, like hiring new employees, giving employees a wage increase, paying down debt, acquiring inventory or even giving business owners themselves a raise.
Although all of the above suggestions are important and can help long-term stability, why not take advantage of the opportunity and expand your marketing budget? Adding marketing channels and attracting new audiences leads to more business growth, profit, and income for your bottom line.
Rev up your online presence
This as a huge opportunity to better leverage the digital space where once you may not have been able to afford it. Smaller companies generally have very limited marketing budgets, so consider directing some of the windfall towards video production and online promotion, where campaigns are scalable and targetable. Your online presence matters more and more these days, so dig in!
Small business owners are usually hands-on, with limited time and resources to produce their own blogs or other digital content, let alone have the experience to know what to do with that content once created. And oftentimes marketing budgets are stretched so thin that they are unable to reach out to an agency to expand their footprint in the digital domain.
Although most business owners understand that they should have a stronger marketing presence, it is always gets pushed to the back burner as one of those nagging things that they know need to be done but just never are able to pull the trigger.
Now’s your opportunity to step into the digital advertising space and start competing with these larger companies using this new “found money.”
Amplification, Inc. helps our clients turn up the volume in the digital marketing space. We would welcome the opportunity to sit down with you and evaluate what to do with your new found tax windfall. Email us at Info@AmplificationInc.com.
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