Monthly Archives: February 2017

Finance or Lease Your Automobile?

Chevrolet Camaro Z28

Which makes the most sense, to finance or lease a new vehicle? Each one has its own benefits along with drawbacks, both financial and non-financial. Let’s take a look at each to help when making a decision:

Pros of Financing: After the loan has been paid off you will own the car free and clear without burdensome payments. The vehicle is an asset that has value to it. For tax purposes, if the vehicle is used for business, then you can deduct depreciation, interest, gas, etc.

Cons of Financing: Your monthly loan payments are usually much larger than with a lease. You should also be prepared to keep your vehicle for a long time because you will be shocked by the low trade-in value offered by a car dealer. Also, if you keep your vehicle for a while, your repair costs may increase.

Pros of Leasing: Usually lease payments are much lower than when financing, and every three years you get to drive a new car. Additionally, you may have little to no repair costs except for routine maintenance. If you use your vehicle for business purposes you can also deduct a portion of the lease payments for tax purposes, along with gas, etc.

Cons of Financing: The worse aspect of a lease is that you have a perpetual car payment. Also, you may not have any equity in the vehicle after the end of the lease term. This is why leasing can be more expensive in the long-term.

Unfortunately, there is no clear answer, but generally you end up paying more with a lease over the long term. An alternative is to purchase a quality used car (and try to pay cash) that is less than 3 – 5 years old, and this is where you get the most bang for your buck.

5 Simple Ways to Improve the Management of Your Business for Little to No Cost

The success of your business depends upon how well you manage it. From a start-up all the way to a billion dollar corporation, managing your business well will help to insure its success. Since most businesses are small businesses, here are some ways to help a small business owner.

Answer the Phone: When a customer or prospective customer calls, someone should be available to answer the phone. Struggling business owners tend to have calls go to voicemail where they lose thousands of dollars of potential sales each year by not taking the first step to speak to an interested potential customer or a repeat customer.

Follow-through: Smart business owners quickly follow-up with their customers when they need a service or product. Whether it is a price quote or to gather more information for what is needed, this is crucial. A customer should not have to throw themselves at you.

Don’t do it all yourself: See the first point. You need to delegate tasks, especially those that can be time-consuming and are easily outsourced.  A perfect example is payroll and administrative tasks. The cost of outsourcing payroll is fairly insignificant, but can free up valuable time. Other examples are answering the telephone, cleaning and maintenance, and running simple errands, such as ordering supplies and going to the post office.

Focus and time-management: You pay nothing for this, but yet it can cost you your business. You must focus on the important aspects of your business, with many of them not being urgent. Stop wasting time on non-valuable activities and spend your time doing what matters.

Marketing: Sometimes marketing can be very expensive, but it doesn’t have to be. It can actually be free or cost very little. Usually businesses stop marketing when they are busy, and then cut back on marketing when they are slow. These are both mistakes, as marketing should be done throughout the year, and be budgeted for.

These are just a few of the many ways to manage your business the way it should be managed. Manage it the right way and you will be rewarded.