Tax Deductions You Hate to Take

Who hates to reduce their business’s taxable income? It may seem like an oxymoron to hate paying Uncle Sam fewer hard-earned dollars, but it’s not…if that lower reported taxable income is due to certain circumstances.

Sign reading 'The Hartford: Big heart for Small Business'

The Hartford believes (as do we) that small business owners are the visionaries of our country and the backbone of our economy. If you have never visited their “Small Biz Ahead” blog for small business owners, this month’s article about why you hate to take certain tax deductions is a great read.

Warren and Charlie

When the giants in business, namely Warren Buffet (age 92) and his partner Charlie Munger (age 99), give business advice — we business owners might want to sit up and listen.

paper dollar boat sinking in the sea with a view underwater.
Concept paper dollar boat sinking in the sea with a view underwater. Finance and crisis, a creative idea. Falling exchange rates.

As recalled recent article in Entrepreneur Magazine (Feb 23), Mr. Buffet and Mr. Munger met at a dinner in 1959 and immediately connected. According to Buffet, “Charlie and I think pretty much alike. But what it takes me a page to explain, he sums up in a sentence.” Often, business partners with opposite but complementary traits and skills are the best partners because opposing points of view can provide a “bigger picture” that leaves no stone unturned.

Charlie once said “You have to keep learning if you want to become a great investor. When the world changes, you must change.” We small business owners are our company’s chief investor, so Charlie’s advice is meaningful for all of us.

Since COVID and current political trends are having an impact on taxes levied on businesses and individuals, staying on course as a small business has been tough. Charlie has something to say about this too! 

“Don’t bail away in a sinking boat if you can swim to one that is seaworthy.” 

4 Traits: Successful Business Owners

You may have started your business on a great idea, a particular skill set, or a burning desire to fill void in the marketplace. Whether you are the definition of an entrepreneur, inherited a family business, or are simply a natural leader seeking success, you probably have a few of these traits most small business owners need.

  1. Always look forward. A natural leader is always asking herself or himself, where will I be five, ten years from now? What can I do better now to assure myself that my business and my employees and customers will be better off because of the decisions I make today? A forward-looking business owner refuses to get stuck making the same mistakes or wrong moves, nor is willing to accept the same income and profits year after year.
  2. Communicate effectively. When employees or staff understand what you expect from them, they are more likely to live up to expectations. Sharing your long term vision for the company helps employees see where they fit into the big picture and are more likely to work better as individuals and as a team.
  3. Delegate work when at all possible. Of course, this means that first you need to hire smart, talented people who want to grow their own professional skills. Hiring top talent yet refusing to delegate important tasks hurts morale and eventually staff retention. Delegating saves time, helps develop more productive employees, reduces turnover, and inspires everyone to do their best.
  4. Make mistakes. We all do—we’re not perfect! If you run a business, you will make mistakes. The upside is that mistakes present excellent opportunities for a lifetime of learning, getting better at what we do. Mistakes move us to learn, to be fearless, to be successful.

Obviously, the “traits” may not stop here, but these are our favorites, and a fun and fitting way to wish all our clients and friends a Happy and Prosperous 2023!