Construction is one of the engines of the US economy. This industry involves over 600,000 businesses. Nationwide, it employs over 7 million people. Construction businesses require large investments. When in the need for major equipment, there are two options: rent or buy. Renting equipment is a good short-term solution. However, renting repeatedly quickly becomes expensive. There are more affordable ways to operate.
These days, almost every business utilizes some type of software database to assist with day-to-day operations. Over 90% of business owners employ some type of software program ranging from tracking sales, payroll, bookkeeping, inventory control, customer resource management, etc. to operate smoothly while at the same time being efficient.
Cost-effectiveness analysis is a tool used in several economic sectors. It measures how well different strategies will play out, depending on the decision that’s made. It is an option that’s sometimes used as an alternative to cost-benefit analysis. Cost-effectiveness analysis allows business people and governments to compare several different ways to solve a problem. They can see which outcome will be the most favorable.
The construction industry has been changing rapidly in recent months. Entrepreneurs have responded in different ways. One huge trend in the sector is that contractors are embracing technological change.
Most small businesses have had to adapt during the COVID-19 pandemic. For some entrepreneurs, that meant a simple pivot. For example, some businesses went mobile rather than relying on storefronts. Some dog groomers took to the streets in vans or trucks to provide trims for their clients. Many restaurants shifted to a takeout model, and some became food trucks. For fitness centers, the challenges have been a bit different.
2020 has been full of challenges for entrepreneurs across the country. Adaptation has been key. While everyone is facing difficulties due to a recession, there are still ways to shift focus, or even start a new business. Understanding where the gaps are in the market right now is very important. People always have needs, and the key to a successful business is finding ways to meet them.
Investment in an established company is really the best way to drive innovation. Culturally, there’s a stereotype that new startups make the most ground-breaking, creative products. That’s due to some notable success stories, like Apple, Facebook and even Amazon.
The idea of investing in your small business during the pandemic can be intimidating. However, investment can be one of the keys to succeeding during a difficult economic moment. Adding new equipment can be a wonderful way to adapt to a quickly-changing marketplace, especially where social distancing rules and restrictions can change at any time.
Because the federal government wants to encourage this kind of economic activity and the positive effects that it has, they provide incentives in the tax code. One of the most important incentives is outlined in Section 179 of the IRS tax code. Section 179 makes it possible for taxpayers to deduct up to $1 million spent on equipment AND machinery for their businesses.
Being able to see gaps in the market and maintain a positive mindset can be as important to business success as the overall economic picture.