As the saying goes, a new year, a new business strategy. With 2011 behind us, it is time to start looking at ways to improve your business in 2012. This article discusses a few things to consider as part of your 2012 strategy to grow your business, save money, and improve your bottom line.

1. Capitalize On Low Interest Rate Opportunities

With the uncertainty surrounding our current political and economic future, consider betting with the odds: Out of the past 21 presidential election years, the stock market went up in 17 of them. Historically, in election years interest rates go down and we experience economic growth. This is mainly caused by the administration’s agenda to gain voter support.

It may be time to evaluate your business’s debt-to-equity ratio and determine whether it would make sense to borrow money. With interest rates at an all-time low, and the economy traditionally experiencing growth in an election year, locking in a low interest rate could be a prudent way to expand your business.

If you have to spend money to make money, borrowing at the lowest interest rates in our nation’s history may end up paying off for your business.

2. Seek Out Alternatives to the Traditional Bank Loan

If credit problems are preventing your business from taking advantage of these historically low interest rates, 2012 is the year to think outside of the box when it comes to borrowing money.

Recently, Governor Chris Gregoire and the Washington State Department of Commerce announced the Washington Small Business Credit Initiative, which is intended to spur $300 million in new lending.

This initiative creates new financing sources for our state’s small businesses seeking to grow and create jobs. In a recent press release, Gregoire stated: “With the Small Business Credit Initiative, we are removing a big barrier to their success by opening more pathways to financing that’s been scarce during this recession.” 

For more information about the Washington Small Business Credit Initiative, visit www.choosewashington.com.

3. Take Advantage of the Expiring Bonus Depreciation Incentives

If your business is in the market for new farm-use or business equipment, now is the time to purchase those assets and take advantage of a tax incentive that is set to expire in December, 2012. When the economy began its downturn in 2008, Congress expanded certain depreciation deductions on capital equipment and real estate improvements in an effort to boost business investment.

The bonus depreciation deduction allows a taxpayer to depreciate 50 percent of a new asset in the year of acquisition as a deduction against income. The deduction applies to assets (such as farm equipment or other business assets) that have a depreciable life of 20 years or less.

This bonus has been useful for farmers and the agriculture industry because virtually all farm-use assets meet the incentive’s requirements. If you are thinking of purchasing new farm equipment, do so in 2012 before the bonus incentive expires and you can reduce your 2012 income tax liability, which puts dollars into your pocket now.

4. Find Creative New Ways to Save Employee Costs.

Create a part-time internship position to meet your temporary hiring needs. Hiring students in a work experience program is a great way to get part-time help at low cost.

Wenatchee Valley College’s business degree program provides local students with a foundation in the business concepts of marketing, management, accounting/finance and communications, and you should have no problem finding students eager to build their resumes.

By utilizing this resource, you not only help a student get needed experience, but you avoid the traditional employment expenses associated with providing health insurance, sick leave or vacation time.

You can post job listings on the Career Center Job Board by calling the career center at 682-6858 or by posting the job using the Center’s online service at www.collegecentral.com/wvc.

The key to saving your business money is to be diligent: check with your accountant for tax breaks, keep up with the State and Federal small-business initiatives, and don’t be afraid to be a little creative when it comes to issues like staffing. These small savings may add up to a big difference in 2012.

Evan McCauley and Lindsey Wehmeyer are attorneys with Jeffers, Danielson, Sonn & Aylward, P.S., a Wenatchee law firm.  Evan and Lindsey practice in the areas of estate planning, tax, corporate law, and business succession planning.