Business Information for Entrepreneurs by an Entrepreneur

2009 is quickly coming to an end. Have you taken advantage of the tax breaks provided to you by the American Recovery and Reinvestment Act of 2009? If not, you would be wise to use the next few weeks to claim your share of the tax break initiative.

A private survey shows that about 71% of small businesses have taken at least one tax break from the provisions outlined in the 2009 economic relief bill. The government wants to urge small businesses to use these tax breaks before the end of the year because they are not likely to be renewed in 2010. The Federal Assistant Treasurer, Senator Nick Sherry, has issued a statement reminding small business owners of the 2009 deadline and is encouraging them to get with the program.

Best Tax Benefits of 2009

One of the biggest tax breaks is the 50 percent bonus deduction on depreciation on the acquisition of eligible assets. An eligible asset might be equipment over $1,000 purchased this year. This additional expensing of depreciation in the first year can be a tremendous help in reducing the tax burden on small businesses, and it is intended to stimulate the purchase of equipment and assets in 2009.

For instance, say you purchased a new piece of manufacturing equipment for $5,000. Normal depreciation of the equipment would be spread out and take place over a period of 5 to 7 years. However, you can deduct $2,500 in depreciation this year, even if you purchase the equipment on December 31, 2009.

And the 50% tax deduction is not all. You can still take advantage of other incentives, such as work opportunity tax credits for hiring unemployed veterans or "disconnected youth."

Pre-Pay Your Taxes and Save

If your business pays estimated taxes, you only need to pay 90% of previous tax year liability instead of 100%. If your small business is research-based, you could take a basic 20% credit for increased research expenditures. Or invest in economically distressed areas for new market tax credit.

The credits offered for small businesses in the relief bill of 2009 are likely an once-in-a-lifetime opportunity. Be sure to take the next few weeks to analyze and consider where you can benefit from additional tax breaks.

The advertising paradigm has felt a significant shift. Print media, radio, television - all these traditional forms of advertising are taking notice of the new king of advertising results: online search marketing.

In fact, according to a study published by one of the leading online advertising companies, WebVisible.com, small businesses spent 91% more on PPC advertising in the third quarter of 2009 than the same period in 2008. That is nearly double the spending in one year!

Online Marketing 101

Small businesses particularly benefit from search marketing and advertising, but what is search marketing? Typically, search marketing involves advertising through the search engines or directories, with an advertisement appearing at the top of search results when a certain keyword or phrase is used.

When these ads appear, a user can simply 'click' on a link or 'call' the provided number to get more information. Hence, with pay per call or pay per click advertising, this generates a highly concentrated set of leads for the small business, and the best part is that the business only pays for the advertising when a click or call occurs.

Why Search Marketing Continues to Grow in Popularity

Why is search marketing continuing its rapid growth in popularity? PPC works and is the most cost-effective form of advertising available today. Hundreds of millions of web searchers are performing searches every day around the world, mostly using the top search engine, Google. Subsequently, over 60% of small businesses chose Google as their main search marketing agent.

What did small business spend on search marketing in Q3 2009? According to WebVisible.com, the average spending for search marketing was around $1,600. However, the top tier of small business search marketing was between $2,000 and $3,000 for the quarter. That translates into big gains for online advertising revenues, and it is expected to continue to increase at the pace we've seen in the last year.

Online search marketing is quickly becoming the model for results-based advertising. If you operate a small business, consider the benefits of an online search marketing account. The cost per lead can be much more cost effective than traditional advertising strategies, and you will likely be pleased with the results on your bottom line.

The U.S. Government wants your energy-efficient and "green" small business to succeed. And to prove it, they have just earmarked $18 million to fund 107 small companies that specialize in advanced clean energy technology.

Stimulating Green Energy for a Greener Economy

The funds are part of the 2009 American Recovery and Reinvestment Act to help stimulate economic growth. These funds are only a first-round of funding. By summer of 2010, an additional $60 million in grant money will be available for new small energy technology companies.

The grants are good news to small business. Grant amounts up to $150,000 were given the 107 companies who were competitively chosen from a pool of 950 small business applicants. The main criteria for the companies chosen were job creation and near-term commercialization of new technology.

Looking to the Green Future

What types of energy efficiency is the government interested in? The companies chosen were from a wide arena of industries, including solar and water technologies, power plant technologies, such as efficient gas turbines and cooling, advanced sensors and controls for heating and appliances, and advanced manufacturing techniques.

The largest amount of grant money, over $3.7 million, went toward 25 projects for industrial technology development. These small businesses develop and improve upon manufacturing technologies that are not only more energy efficient, but sensitive to the environment.

Also working toward reducing greenhouse gas emissions, $2.2 million was granted to small businesses that specialize in improving air conditioning and refrigeration. These small businesses are leaders in cooling designs that help reduce peak demand, relieve thermal loads on roofs, and improve efficiency while reducing the amount of greenhouse gas emissions.

Good News for Small Businesses

It is clear that the U.S. government supports small business and believes in their innovative and cost-efficient processes. Small businesses are the drivers for new technology and not only create the most new jobs for Americans, but also are the leaders in advocating a cleaner environment.

Although $18 million may not seem like much compared to the billions doled out for the major corporation bailouts, this money will help ensure that small business are able to continue competing in the clean energy industry.