From the Director:

  

Welcome to August! 

     We are always on the lookout for programs that can help our Otoe County Businesses. This month two such programs are being highlighted; Microenterprise Tax Credit and Business Transitioning. 

     The Microenterprise Tax Credit program, is available through the Nebraska Department of Revenue and provides a refundable tax credit to micro-businesses that are growing through capital investment and employment growth (a micro business is a comapny with 5 or fewer employees).  The great aspect of this pogram is that it is available to both service and retail-based businesses.

    The Microenterprise Act provides people actively involved in micro businesses a refundable individual income tax credit, based on the demonstrated growth of their business over two tax years. The Microenterprise Act provides tax credits to applicants for creating or expanding micro businesses. The applicant earns a credit equal to 20% of the increase in new investment and new employment at the micro business in the year of application and the year after application. The total lifetime tax credits claimed by any single taxpayer and any related persons are limited to $10,000.

     According to the Department of Revenue's website a total of $1,337,535 was allocated to the program for the 2013 calendar year and as of July 12, 2013, $662,465 is still available to be allocated to eligible projects.  Please check this out, as we want to ensure these funds are used during the 2013 calendar year. 

     Here is a direct link to program information on the Department of Revenue's website. Click here for Link 

     Business Transitioning is an issue that is facing many of our business owners in Nebraska as they are looking at transitioning out of their business.  On August 21st, Odee Ingersoll of the Nebraska Business Development Center will be here in Nebraska City.  At noon, he will give a presentation to the Nebraska City Rotary Club and throughout the day he will be available for one-on-one, 30 minute consultations with business owners.

     If you would like to join us at Rotary, you can come as my guest or if you would like to schedule a time to meet with him individually, please call me to schedule an appointment (402 873-4293).   All appointments will be held in strictest confidence.

     For a quick synopsis of the NBDC's Business Transitioning program:

1.  Business Planning Value Report by credentialed valuation professionals.

2.  Nine Opportunities For Success - Nine ways out of your business and their value to you.

3.  Grow Your Value - Opportunities to increase your exit value in the time you have.

4.  Revised Nine Opportunities For Success Report.

5.  Maximum Value Plan - Increase your Cash-To-The-Seller by as much as 200%.

6.  Alternative Deal Structures - 3 additional ways to get a tough deal accomplished.

7.  Planning For Your Future - Your personalized Exit or Succession Plan to take to your team.

8.  Market and Industry Premium Research and Commentary.

9.  Location Analysis and Trends.

10. Ready. Set. Go. - Turning your plan into action to attract or develop a buyer or successor.

This plan has 3 simple goals:

• Maximize Business Value for the Seller.
• Maximize the Number or Real Transition Opportunities for Owners. 
• Retain Successful Small Businesses in their Community and Encourage Local Ownership.  

      Up to 70% of existing owners will leave their business by 2020* and up to 80%* of owners are not ready. Business Transitoning is NOT as easy as selling a house.  Invest in yourself and take the time to plan.  You may contact Odee directly in Kearney at 308-865-8344.

      *The link below is to a map of the United States comprised of very interesting demographics. It graphically illustrates "The chances a child raised in the bottom fifth of the income bracket rising to the top fifth" Map.  Maybe we should change the state's tag line to "Nebraska the Great Life; Acres of Opportunity". If you'll hover your cursor over a county or area, you can get a percentage for that area.   What is encouraging is that our region is doing better in this area than both the Lincoln and Metro Omaha areas.

     Now we need to work diligently to provide the appropriate skills training for our youth to equip them to continue this upward trend!

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