If you were to ask this question 10 years back, the answer would have been very simple, DIVERSIFY YOUR INCOME STREAM. But this answer is no longer valid, not anymore. The business world is more dynamic than ever, and it is filled with uncertainties and tough financial situations.
So, how to pull more money from your business?
Below are some of the ways you can generate more revenue from your business without making massive investments.
1. Rent some of your business property
If you own a commercial place that is bigger than what you actually need, then rent to out to another business. This way, you will be generating money out of a space that was previously not doing any good to you.
There are many businesses out there that only need a room or a corner to operate. This way not only you are helping yourself but also helping out another professional.
If you are not ok with leasing the place, then sub-lease it, i.e. having a shared space like a conference room or sharing some accessories like Wi-Fi, printers etc. You can also rent your company car with another service when it is not being used by you.
2. Owner’s Salary or Draw
If your business is a limited liability company (LLC), in a partnership or a sole proprietorship, you are allowed to pay yourself where you can give yourself money just like a salary.
These above-mentioned business types, all the profits are passed through to owners who are needed to be added to individual tax returns.
An owner’s draw is a representation of end-of-the-year profits which are taken on a yearly or annual basis.
3. Deductible Expenses
You must ensure that your business pays and deduces all the expenses related to business. These expenses can include the travel and entertainment costs for a specific business purpose.
For example, a company owned car offers more benefits than a privately-owned vehicle. A company-owned vehicle would be tax-deductible.
Another way to save money on taxes is through putting family members on the payroll. This will help your income to fall into the low bracket of taxes compared to commercial taxes.
4. Value-Added Products or Services
When you add value to your company’s services and products, it helps move your business. For example, if your company sells carpet cleaners, then you can also sell bottles of spot removers if you are selling crockery, then you call also offer cooking lessons by partnering with another firm.
5. Complete Utilization of Assets
Your business property, your employees, your customers, your services and your products, all are your assets and resources which may not be generating as much money as you would have hoped for.
It’s time you took a hard look at these assets and identify those resources which, according to you, are being under-utilized.
Selling your car is also a great option. Sell your car fast and get the best prices in the industry which will help you get the financial assistance to get the business going.
We hope the article helped you and you find success in your future business endeavours.