If starting a new business was your New Year’s resolution, then 2015 may be your year. Optimism among small business owners reached 98.1 percent in December 2014. This was the highest it had been since February 2007. Experts have stated there are a number of reasons small business owners are feeling more optimistic, including tax incentives, access to cash and low fuel costs.
Access The Capital
Nigel Thomas is a 38 year-old from New York City once worked as a software engineer. He left his job in November 2014 in order to pursue his dream of starting a business. He has his own company called Go Locker, and he is making plans to expand it this year. Thomas already has two sets of lockers in Bodegas in Brooklyn. He is hoping to open three more locations during the first quarter of 2015.
Thomas has stated that he looks forward to taking advantage of the tax credits once his business expands. Low interest rates on loans are another reason many people are choosing to start businesses. Gene Marks, who is the founder of The Mark Group, has stated that aspiring business owners should take advantage of the low interest rates on loans.
Even though many banks have set stricter loan requirements, the market for alternative and micro lenders is growing. Business owners today have more than they had in the past. Lending Club And On Deck, are two lenders that have quick cash turnarounds and looser lending requirements.
Low Fuel Costs
The average cost of gasoline in the United States is around $2.19 per gallon. This is the lowest it has been since May 2009. Low fuel costs benefit business owners because consumers now have more money to spend.
Retirement Incentives And Taxes
Many entrepreneurs want to take advantage of the tax incentives. The 2015 Small Business Tax Credit is one of the incentives small business owners can take advantage of. In order to qualify, the business must have fewer than 25 employees who make an average of $50,000 per year or less. Employers who provide their employees with health insurance through the Affordable Care Act Exchange may be able to get up to 50 percent of their premiums back.
Small businesses that start a 401K plan can offset the start-up costs by claiming a federal tax credit. The maximum contribution has increased to $18,000 in 2015. Mike Trabold, who is director of Compliance Risk At Paychex has encouraged small business owners to take advantage of these tax credits and energy investments.
If a small business purchases a fuel cell, solar panel or wind system, it may qualify for a tax credit. The Business Energy Investment Tax Credit applies to energy systems that are installed on or before December 31, 2016.
Take The Plunge
The job market is improving and becoming an entrepreneur can be a very risky endeavor. However, entrepreneurship is still a dream for many people. Thomas has stated people who truly want to be entrepreneurs will not be happy working for someone else.