With the new Tax Reform bill now law, US companies have more flexibility in their business spending. Many may choose to invest in the business.
The new law permanently reduces the corporate tax rate from 35% to 21%. And that means all corporations, large and small, will have considerably more cash to spend or perhaps invest in the business. But what does that mean in the real world?
Let’s look at the retail sector. When the overall tax rate is lowered, retailers who don’t get to take all the deductions other businesses enjoy usually tend to benefit the most. In this case, retailers who may have been forced to choose between a new hire and new technology could finally pay for both. Retail is the category where, bizarrely, by the time seasonal hires have learned your corporate culture, they have to leave. Converting those high achieving seasonal employees to full-time members of your team will once again be possible. And retailers may also benefit from their customers’ temporary tax breaks that will put extra spending money in their paychecks.
Some companies may use these newfound funds to upgrade from paper coffee cups to porcelain. More ambitious firms might expand their facilities or add new locations. And while every company is different, there are some needs they all share.
In Hanoi’s Ho Chi Minh Museum, Ho’s office is preserved just as it was during the Vietnam War. His desk is uncluttered, with just a pair of 1960s-era telephones. “Using only two telephones and a legal pad,” notes the guide, “Ho Chi Minh brought down the greatest fighting force the world has ever known.”
Today, the tools of choice across industries aren’t that different from Ho’s phones. A smartphone, a tablet, and a laptop computer are often all today’s staffers need to innovate and deliver whatever’s needed.
So what, exactly, should your business purchase with its new tax savings? Here are a few suggestions to invest in the business:
Business Process Automation (BPA)
Business process automation (BPA) helps with marketing, internal processes, and product production. Internally, BPA maintains consistency while speeding up interdepartmental lines of communications. This helps staffers make deadlines, while the increased efficiency creates a stronger bottom line for businesses. BPA can be a big-ticket investment for your company, and your new tax break may take some of the sting out of the costs involved.
Getting the right technology
Most smaller businesses equip their staffers with the basics: a smartphone and a laptop computer because staying connected gives companies an equal shot at increasing both clientele and profits. Using your tax break to upgrade this equipment is smart because it helps you run your business from anywhere, even the other side of the world.
Do it yourself, or do better?
Your new tax break might help you bring some vitally needed partners on board. If, for example, you’ve been trying to fulfill your marketing goals internally with dismal results, it might be time to hire a full-service digital marketing agency that generates advertising, email blasts, tweets, blogs, videos and websites on your company’s behalf. A marketing firm like MediaMark Spotlight is not only affordable, it’s also capable of bringing in enough new customers and clients to more than pay for itself.
MediaMark Spotlight does more than just deliver an idea or capture a brand. We take the time to learn about your customers, your company, and your goals. This allows us to capture and expand the essence of your brand, and bring it to your targeted demo powerfully, efficiently and economically. We also drive your message home through proven traditional marketing as well as next-gen digital techniques, including mobile messaging, short explainer videos, and dynamic banner advertisements.