What could you achieve with 40% increased cash flow?
Small business owners are always ready to embrace new opportunities for growth. However, when cash flow stagnates, good ideas can get sidelined in service of more immediate needs.
After all, it’s hard to innovate when you’re focused on staying afloat.
That’s why claiming the Work Opportunity Tax Credit (WOTC) is a must for small businesses. WOTC improves cash flow, often up to 40%, by reducing your tax liability for making strategic hiring decisions. The average WOTC-eligible new hire frees up $2150 that would otherwise go to the IRS, and some earn up to $9600!
Businesses that hire in high volumes, such as staffing firms, construction contractors, nursing homes, restaurants, home healthcare service providers, retailers, manufacturers, and more, stand to gain huge benefits from WOTC. Plus, when businesses reinvest their WOTC gains, they multiply their tax benefits.
How would you reinvest freed-up cash in your business? Consider these three ideas.
1. Develop new products or services
It’s often true that our first idea is not our best idea. However, it’s also often true that the only way to get to that better second idea is by completely working through the first one.
For that reason, business owners usually have no shortage of good ideas for expanded or improved products and/or services. Turning good ideas into reality, though, requires time and money.
Several of our clients have reinvested WOTC profits into R&D for new products or services, because new products and/or services attract new customers and revenue streams.
Using this strategy successfully creates a positive feedback cycle whereby increased profits leads to new products and services, which leads to more jobs and revenue, which leads to additional products and services, etc. That’s why it’s our top suggestion for reinvesting your WOTC profits.
2. Supercharged sales and marketing
If a tree falls in the forest and nobody is around to hear it, does it make a sound?
Relatedly, if you develop the world’s greatest product but don’t invest in sales and marketing, does your product matter?
Whether it’s through conducting insightful market research, launching a campaign via a new channel, bolstering the ranks of your sales team, or hiring creatives to reimagine your brand from top-to-bottom, reinvesting freed-up cash in sales and marketing can pay off in big ways.
Although calculating the true ROI of sales and marketing can be complex and difficult, ask yourself this—which brand do you think of first when you hear sneakers? How about hamburgers? Insurance?
Then ask yourself why you thought of those brands first. Your answer may explain why reinvesting profits in sales and marketing is a winning strategy.
3. Upgraded assets
Dee Hock, founder of Visa, once said, “An organization, no matter how well designed, is only as good as the people who live and work in it.”
While we fully agree with Mr. Hock, we’d also add that Visa wouldn’t be Visa without its estimated $91B in assets, including the real estate, tech, intellectual property, and other infrastructure that allows its people to perform their work.
Whatever your industry, you need certain things to get work done. Paying for those things using freed-up cash produces the most value over the lifetime of the thing. Plus, business expenses can be written off next year’s taxes, keeping you well ahead of the game when April 15 comes around again.
What tools, systems, spaces, or other resources would you acquire if you had 40% more cash?
Let’s begin
Ready to boost your cash flow with WOTC? We’ve helped hundreds businesses claim nearly $700 million in employment tax credits. Whether you are brand new to WOTC, or seek to optimize your current WOTC participation, our team of tax experts is here to help you boost your bottom line by up to 40%.
Plus, our seamless integration with major applicant tracking systems and payroll providers make claiming the WOTC easier than ever for some.
Don’t keep your great ideas sidelined. Make it possible by boosting your cash flow with WOTC today.