Marketing Tips For Home Based Businesses

At this time, it appears probable that many small businesses will need to shut their doors for the next few weeks. Many closings can be temporary; in others, they may turn out to be absolute permanent. National economic conversations often focus on the money-flow difficulties faced by families and individuals. However, the problems faced by small business operators are also important to consider. The following information discusses some of the financial considerations owners of small businesses need to think about.

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Marketing Tips For Home Based Businesses

At this time, it appears probable that many small businesses will need to shut their doors for the next few weeks. Many closings can be temporary; in others, they may turn out to be absolute permanent. National economic conversations often focus on the money-flow difficulties faced by families and individuals. However, the problems faced by small business operators are also important to consider. The following information discusses some of the financial considerations owners of small businesses need to think about.

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In many jurisdictions, including the U.S., there is substantial pressure to extend paid leave policies to employees. At the present time, however, there are very few jurisdictions that provide any type of paid leave benefit to small business owners. This can be a tremendous problem when the owner needs to take time off from work for health reasons, such as pregnancy, or for family reasons, such as a sick child. Most employers do not offer paid leave benefits even for those employees who have been working for them for many years.

Because of the relatively weak state of the economy right now, many small businesses may be forced to reduce the employee head count. Some employers have resorted to laying off entire teams. In some cases, the reduction of head count has resulted in staff shortages, or a need to downsize to a smaller staff. In other words, even if employees continue to work for big companies, they may have less job security than they had when they started with big companies.

In many jurisdictions, local and regional governments are either reducing funding for SBA loans and other small business loans or are otherwise making it more difficult for SBA-insured small businesses to get a loan. For example, in Florida, small business owners must obtain SBA financing through a traditional lender and then use a secondary unsecured lender to process payments. This “second” lender will charge a fee for their services. The result is that many Florida small business owners are left without sufficient access to capital. In the case of a traditional lender, this fee may not be so burdensome, since they receive payment from the loaned money.

Even though President Obama’s tax plan may eventually make mortgage interest rates cheaper for many small businesses, the result is probably temporary, at best. As we all know, tax rates will eventually go up. And in some cases, home-based small businesses are exempt from the Alternative Minimum Tax (AMT) for the first two years they operate. But after that introductory period, if a home-based business doesn’t produce a profit for two consecutive years, the AMT will kick in. That’s a double whammy for many small businesses, which were counting on AMT to provide financial protection.

It may seem that a business that employs only nine employees can’t benefit from home based businesses need more capital. The truth is that in today’s competitive lending market, home-based businesses will need more loans, especially if they expect to expand. Most new business owners won’t have access to credit cards, and traditional bank loans may still be too expensive for many new businesses. In addition, many home-based businesses will need startup money, and as they grow, they may also require access to marketing materials.

When a small business owner decides to outsource some or all of its marketing materials – brochures, catalogues, direct mail campaigns, flyers, letterheads, and so on – what costs are necessary? The answer depends on who you outsource to. For companies with local offices, this material can be eliminated or greatly reduced. Outsourcing these types of marketing materials to agencies that specialize in this type of work can save a company hundreds or thousands of dollars annually.

Small businesses that target a local market in the United States are particularly vulnerable to the high cost of postage. Many home-based businesses print their own mailing lists and pay a local post office to deliver the packages. If they outsource to vendors that specialize in mailing services, they will likely have to pay an additional surcharge for delivery services. By contrast, marketing materials such as brochures and business cards often cost much less than the average post office, which makes mailing services a great choice for many small businesses.

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