As the economy retreated over the past few years, many small businesses lost customers as companies closed or drastically cut back on operations. It is surprising, but many businesses often overlook or never even consider a huge potential customer. That customer is the government. You would be amazed at all the items and services government agencies purchase.
While the federal government is much harder to get involved with, our local and state governments offer opportunities to grow your business. Think about it, from consulting services to landscaping and custodial work, the local and state governments need it all. There are also many contracts available for such items as printing, construction services and pest control just to name a few. The list is as long or longer than your commercial customers. Stopping and taking a look at the potential opportunities will convince most businesses this is an area they have missed.
It really is not that difficult a process to learn. People always think there is some mystery to selling the government. People will tell you nobody makes any money. Do you really think all of these companies are losing money? It is true in some cases the profit margin may be a little smaller but, the government does pay good. Another benefit is, the contracts run for an extended period of time creating cash flow. Best of all, once you get through the door, usually there are multiple opportunities.
Taking the time to evaluate your potential in government contracting makes sense. Less than 10% of companies compete for this work. Doesn't it make sense to go where you have 90% less competition?
If you would like to get more information on the potential your business may have in government contracting, contact Fred Siegel at Alpha Gray LLC by phone at 623-606-3386 or by email at fred@alphagray.com Alpha Gray specializes in assisting you with registration and certification for a number of Federal, State and City contracting opportunities. Alpha Gray even offers a free evaluation of your own products and services, looking for the hidden revenue building opportunities that may exist. Performance Advisors recommends checking out our friends at www.alphagray.com to uncover those hidden revenue building opportunities right in your own backyard.
Don't Overlook These Tax Breaks
From the Recovery Act, HIRE Acts, and Affordable Care Act:
1. A New Small Business Health Care Tax Credit
2. A New Tax Credit for Hiring Unemployed Workers
3. Bonus Depreciation Tax Incentives to Support New Investment
4. 75% Exclusion of Small Business Capital Gains
5. Expansion of Limits on Small Business Expensing
6. Five-Year Carryback of Net Operating Losses
7. Reduction of the Built-In Gains Holding Period for Small Businesses from 10 to 7 Years to Allow Small Business Greater Flexibility in Their Investments
8. Temporary Small Business Estimated Tax Payment Relief to Allow Small Businesses to Keep Needed Cash on Hand
From the Small Business Jobs Act:
9. Zero Capital Gains Taxes on Key Investments in Small Businesses
10. The Highest Small Business Expensing Limit Ever- Up to $500,000
11. An Extension of 50% Bonus Depreciation
12. A New Deduction for Health Care Expenses for the Self-Employed
13. Tax Relief and Simplification for Cell Phone Deductions
14. An Increase in The Deduction for Entrepreneurs' Start-Up Expenses
15. A Five-Year Carryback Of General Business Credits
16. Limitations on Penalties for Errors in Tax Reporting That Disproportionately Affect Small Business
And from the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act:
17. 100 Percent Expensing
"When it comes to taxes, there are two types of people. There are those that get it done early, also known as psychopaths, and then the rest of us." -Jimmy Kimmel
As with everything else IRS related, the rules for tax deductions and tax credits are not always black and white. Consult with your tax professional or call Performance Advisors to help you compute maximum deductions and credits for your 2011 taxes. Contact Performance Advisors today at 602-579-5725or email Performance Advisors
today for ideas and assistance.
.
