Forming a new business is certainly a challenge for people that have never owned a business previously. Attracting customers and competing with other local businesses are all difficult tasks to overcome. However, it’s all about supplying a quality service, branding/advertising yourself effectively and setting a reasonable but profitable price range. Tough economic times has a lot of potential customers second-guessing what they want to invest their money into.
According to NJ.com, New Jersey policy perspective president, Gordon MacInnes stated, “The state’s economic recovery is one of the slowest in the country, leaving a shrinking middle class and creating undue hardship for the poorest New Jersey residents.” Here are some useful tips to saving some money and to stay competitive in these difficult financial times.
If your business is a sole proprietorship, you don’t necessarily need to pay taxes right away. However, if you’re a corporate entity you must pay on time and immediately. Sole proprietorship means that the business is run by one individual. A corporate entity is formed with the consent of the state government to act as an artificial person to carry on business, which can sue or be sued, and can issue shares of stock to raise funds with which to start a business or increase its capital.
According Bankrate, David M. Williams, founding director of Business Enhancement Associates LLC stated, “But there are no penalties if during the year you shift from being an employee to being self-employed and you don’t make quarterly tax payments.”
A lot of businesses sign up for really high insurance plans but haven’t evaluated their risk and haven’t justified investing a lot of money into the insurance. Reevaluating your insurance plan(s) can result in saving you money. If you notice that you had insurance on something that hasn’t proved to be worth having, then consider terminating the plan if it’s not mandatory to have for your business. A lot factors into what insurance plan you should get. However, you don’t want to pay for something doesn’t help you and your business long-term.A way to reduce the risk of being overpaying is to hire an agent or seek advice from one. According to Business News Daily, David Lupica, a division president at ACE Commercial Risk Services said, “The agent can help the small business owner successfully navigate by purchasing the right amount of coverage for their needs, consider the best deductibles and possibly bundle coverage from one carrier.”
During the tough economic times, marketing your brand is one of the most essential key items to a successful business. By making your business unique and niche compared to the competitors, you’ll be more profitable. Customers will start demanding your service more frequently if you develop a reputation for unmatched services. If you target a specific age range, gender(s) and geographic location the neighborhood will start to know of your services. Investopedia stated, “You’ll need to know where your competitors are so you can differentiate yourself and gain market share. For example, think about where your competitors aren’t operating or which potential customers they’re missing – then be the first to capture that segment of your market.” You can alter your businesses prices by investigating your competitor’s prices, or you can also match their prices to avoid potentially losing a lot money.
These tips may seem basic to some, but can be commonly overlooked if not familiar with starting-up your own business. A lot of small business owners are concerned about their future customers and enticing them to keep coming back. A successful business overall needs to have consistent exceptional service, just the right amount of insurance, motivated employees and strategic marketing.
Jonathan Sanzari is a contributing writer & copy editor with Meadowlands USA. He has an associate degree in arts from Passaic County Community College and a bachelor’s degree from Ramapo College of New Jersey in communication arts, focusing in journalism. He can be reached at firstname.lastname@example.org.