The Times Herald (Norristown, PA)
3 strategies to bolster your small business’s financial health
The holiday shopping season is now in full swing, and small businesses throughout the greater Philadelphia and Delaware region are looking to capture consumers’ spending to propel their business to financial success in 2023 and beyond.
In fact, a new WSFS Bank Small Business Trends study found that small business owners and leaders are optimistic about their revenues in the next year, with 83% believing their revenue will increase or stay the same, despite the impacts of inflation and rising costs.
As we head toward the home stretch of 2022, here are a few ways to position your small business for sustained success and financial health.
Keep moving forward — with a plan
Despite having an optimistic view of their own future, only 43% of small businesses surveyed throughout the Mid-Atlantic feel the region’s economy will improve over the next six months, and even less (34%) are confident in the U.S. economy.
However, 76% are optimistic their business will still be operating in a year, which is great news. That also means that nearly one-quarter of small businesses surveyed do not expect to be operating, underscoring the importance for short and longterm planning for any business.
With inflation’s grip still strong and rising costs for everything from supplies for the business to healthcare for employees, mapping out a financial strategy is crucial. Speak with your banker and accountant to develop and set in motion a plan that works best for your business.
Build customer loyalty
The holidays are a time of year where many businesses see an uptick in gift card sales, often driving additional post-holiday foot traffic into small business retailers, restaurants and experiential services like escape rooms. This is also a great time for special deals and offers and tying them to the gift card is often a great way to generate additional revenue for your business.
Be ready to offer loyalty programs for new customers using the gift cards they received as presents and keep the program running throughout the year to keep current and new customers coming back to buy your products and services!
Reinvest now for 2023 rewards
The WSFS Bank Small Business Trends study also found that 45% of small businesses are planning to purchase equipment in the next year. Now is a great time to make this investment in your business to maximize a powerful tax write-off via Section 179 of the IRS Tax Code.
Purchasing certain categories of equipment or software for your small business in the last quarter of the calendar year allows you to apply a tax deduction to 100% of the equipment’s purchase cost to that year’s profits. This benefit applies to new and used equipment and includes computers, office furniture, certain types of work vehicles and equipment for business use, like a pizza oven.
Often times, these types of loans can be approved and funded within days, allowing you to act quickly before the year ends to not only improve your business, but add extra cash flow in the process.
Whichever approaches work best for your business, always remember to consult with your banker, accountant and tax advisor to ensure your plan is in place and regularly reviewed and adjusted as needed as we navigate the current economic environment.
Candice Caruso is senior vice president, chief retail lending officer at WSFS Bank. She brings more than 20 years of experience in the financial services industry, including 12 years as a business funding expert, and has been featured on Bloomberg Radio, CNBC’s Closing Bell, The Wall Street Journal and Franchising World.