Small business optimism for the future is at its highest point since 2007-2008, according to both the National Federation of Independent Business and the recent Wells Fargo/Gallup Small Business Index. This optimism, along with other key factors including better access to capital and special tax incentives, points to what could be an opportune time to start or grow a franchise or business.
Funding and Tax Incentives in your Favor
Favorable options abound for entrepreneurs in terms of access to capital. For instance, interest rates are low, and the Small Business Administration (SBA) zeroed out fees to borrowers on SBA-supported loans under $150,000 through fiscal year 2015.
Another funding option is utilizing retirement savings to purchase or grow a franchise, tax-deferred and penalty-free. This can be used on its own or as the basis for unlocking the necessary funds required for SBA loans.
One of the tax incentives available for new businesses is a federal tax credit for starting a new 401(k) plan. Small business owners can claim this for the first three years of the plan to offset initial costs of the new plan. An added benefit of offering a 401(k) plan is that it can help you attract and retain quality employees by giving you a competitive edge over employers who don't offer one.
If you're considering starting a franchise or business, now is the prime time to do it. For more information, contact Benetrends at 866-423-6387.