I’ve recently written about the strong small business economy, and improving your company. But I realized my thinking was somewhat limited in what I was suggesting.
For example, I was discussing adding machines, trucks, etc., and combining such with equipment financing and Section 179. Now, while those are perfectly good ways to improve your business, a strong economy, combined with excellent equipment financing rates and a robust Section 179 deduction can mean improving your company in some less “obvious” ways.
To give an example, is your business one that has a waiting area, either for customers or corporate visitors? How is that waiting area looking these days? Can it use some freshening up? I’ll bet it can, because a waiting area is not something that is directly tied to revenue, so it doesn’t get thought of very often. Yet it will influence how your company is perceived, and ultimately will be reflected in the bottom line (albeit indirectly.) Some new seats, couches, and televisions / vending machines can make a big difference, and right now is a great time to do this.
Conversely, your company’s exercise area (if you even have one) is a place that could probably use an update. And if you don’t have one, now is the perfect time to put one in. Study after study has shown this not only helps in overall employee happiness, but it also has a positive effect on your employees’ overall health. And happy, healthy employees better contribute to your bottom line.
Employee lounge / break area / cafeteria – again, these are areas that don’t directly tie to revenue, so sometimes they get pushed aside. But these are great company upgrades to make when revenues are strong and equipment financing rates are low. Plus, most of this equipment qualifies for Section 179, meaning you can deduct the entire cost.
So yes, improving your company doesn’t always mean buying new production machines. An exercise room and a vending machine (that hopefully sells healthy snacks) are improvements that can pay dividends for years.