Connect with us
NOT IN USE

People & Lifestyle

How Do Small Businesses Save Money in California?

Published

on

business ideas succesful entrepreneur

California is one of the most popular destinations in the U.S. for small businesses. The thriving economy here and the huge, ready-to-target market is a great incentive for entrepreneurs. Take a look at the top industries that flourish here, and you will find a very interesting phenomenon. The most successful businesses in each niche come with very compact staff. Every year, you have innumerable start-ups coming up here that also succeed in achieving their goals.

But before you set up your firm here, it is a smart move to plan out your finances. As part of this process, you must also pay attention to the various ways in which you can keep your start-up and business operations costs low here. Look at some tips that can cut down your bills and keep them that way:

 

Move away with brick and mortar office

The most substantial expense for your business comes from the office space, especially if you are renting out premises in a prime location. However, Californians make this easy for you by embracing the e-commerce culture with great warmth. If the product/service you offer allows it, do away with a traditional brick and mortar office space and set up an e-commerce business. That way, you eliminate the office rent, which is a huge pay-out month-after-month.

A surprising number of services lend themselves to the e-commerce format. It might just take a little creativity for you to figure out how to make yours work. Remember that if you need to, you can also have a very compact office to handle the imperative face-to-face interactions. You can just manage the rest over the internet to keep costs low. Thanks to the San Francisco Bay Area and Silicon Valley, this marketplace is acquainted with e-commerce and used to it. Take advantage of this aspect to save money.

 

Short-term renting vs. long-term

Typically, you would think that a long-term rental would give you the lowest rent option, but here, it is not so. The demand for office space is so high here that owners of premises prefer short-term rentals. You might be able to find a great deal on rent if you start looking for a shorter lease. If much of your business is being done over the phone/via the internet, the location or frequent change in location does not affect your clientele at all. However, the lower rent does make a big difference to your cash situation.

 

Buy your equipment second-hand

California has a thriving second-hand items market. You can cut down costs in furnishing your office and purchasing your office equipment by opting for second-hand items rather than buying brand new items. Chairs, tables, shelves, and so on are all great examples of items that work just as well when they are second-hand. Office equipment, like shredders, printers, and monitors, are great options to consider buying second-hand as well. Of course, do a thorough inspection and testing of the item before you buy it to avoid making a bad investment.  It is important to know how is the ERC calculated, among other.

Become tax savvy

Being smart about taxes can be a major factor in keeping business costs within reason in California. The reason is that there are many advantages that businesses have here that, when used optimally, can cut down your tax bill tremendously.For example, the business expenses are fully deductible directly from your gross income. This includes any expenses that can be categorized as ‘ordinary and necessary’ in order to operate your business. These expenses may also include those that have a personal benefit for you. Knowing what kind of expenses you can use as deductibles gives you a great way to cut your tax bill in a perfectly legal manner.

Employee Retention Credit (ERC) is a refundable payroll tax credit that’s available for employers who are under the criteria of the Consolidated Appropriations Act, 2021. If you are wondering “How is the ERC calculated?” it is worth taking a look in more detail, as it can be a lifeline for small businesses struggling to stay above water.

Consider having a home office

In California, using your home for specific business tasks may give you a full write-off for the home office. However, there are some rules to follow here. If you can conform to those and use your home in a requisite way, then this could be a good advantage to enjoy. Hiring a tax consultant at the set-up time can help you understand how this can be used.

Protecting your business finances

Apart from saving money, it is also important to ensure that you do not unnecessarily take on risks that could drain your finances. One important safeguard you need in place to address this is professional liability insurance. This insurance protects your business from financial liability in the event a client files a lawsuit against you for service they aren’t satisfied with. These lawsuits are more common than you think, and you could be facing a legal claim for:

  • Negligence
  • Incorrect advice
  • Delayed service
  • Poor quality service

Saving money is important when you set up your business, and equally important is to have the right insurance to safeguard yourself from financial liability. Visit bizinsure.com to learn more about professional liability insurance.

Advertisement

People & Lifestyle

Minister Yvonne Nominated “Gospel Artiste of the Year-Diaspora” at Ghana Gospel Music Awards

Published

on

IMG 9788

A little over a month after winning the “Female Songwriter of Excellence” award at the famous Maranatha Awards in the USA, Yvonne Asamoah-Tawiah popularly known as Minister Yvonne has been nominated by the Ghana National Gospel Music Awards for their upcoming Christian music awards. (more…)

Continue Reading

People & Lifestyle

University of Ghana Students Gear Up For 64th SRC Week Celebration

Published

on

University of Ghana

The leadership of University of Ghana Students’ Representative Council are spearheading plans for the 64th UGSRC week celebration. (more…)

Continue Reading

People & Lifestyle

How Changing Your Diet Can Improve Acid Reflux?

Published

on

How Changing Your Diet Can Improve Acid Reflux?

Experiencing acid refluxes once in a while is not too uncommon. However, when this problem persists and shows up every time you eat, it needs special attention and diagnosis. (more…)

Continue Reading

People & Lifestyle

How To Play Online Slots Like a Pro

Published

on

How To Play Online Slots Like a Pro

Slots are the most attractive casino games, and have been so for a while, according to data from Statista. Studies show that 70% of real money casino games on the internet are slots, as of late 2019.  (more…)

Continue Reading

People & Lifestyle

Photos: Traditional wedding of Nigerian gospel singer Mercy Chinwo

Published

on

Traditional wedding of Nigerian gospel singer Mercy Chinwo

The traditional wedding of gospel artiste, Mercy Chinwo to her man, Pastor Blessed, took place in Port Harcourt, Rivers state today August 12. (more…)

Continue Reading

People & Lifestyle

This week on #TwitterGhana: Big Ivy Returns, Kofi Balmer’s signing by Crystal Palace excites Ghanaians and Many More

Published

on

kofi balmer

Get the latest news in music, movies, sports, entertainment and more on Twitter. Here is a recap of some of the trending stories during this week on #TwitterGhana.

(more…)

Continue Reading

Trending