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Every entrepreneur has to be up for a challenge. Starting and growing a business requires lots of hard work, adaptability and commitment. As a small business owner, there’s no telling what might be coming around the corner. For example, the COVID-19 pandemic has caused unprecedented business closures of up to 4 months in some states. Although this has been a strain, it’s important to remember that there are always opportunities to pivot in the business world.
Julia Pimsleur is a successful entrepreneur.[1] She started the Little Pim language education company. [1] Pimsleur is famous in business circles for a concept called the Panama Canal. The canal is, of course, a real thing. But it’s also a great metaphor for entrepreneurs. When the Panama Canal was complete, it saved businesses untold time and money. It shortened shipping times by months.[1] Pimsleur’s definition of a Panama Canal for a business is the one big solution that would improve their outlook overnight.[1]
Right now, there are a lot of challenges in the world, economically. But taking the big view, there’s never been a better time to be an entrepreneur. The ubiquity of the internet and smartphones have made it less expensive and easier to launch a business.[2] In fact, in 2000 it was 1000 times more expensive to launch an average business than it is today.[2]
Pimsleur’s research has shown that for many businesses, the biggest obstacles are finding the right people and better access to capital.[1] Luckily, there are some great solutions available. With equipment financing, it’s affordable for small businesses to change gears or scale up. For example, at Alliance Leasing, we can help restaurant businesses lease a truck.[3] This pivot can make it easier for restaurants to comply with social distancing regulations. Shifting to a mobile business can also eliminate costly rent expenditures for spaces going mostly unused.
With Alliance’s equipment financing program, it’s possible to acquire a used truck in good condition rather than overspending on a new one.[3] Most importantly, especially during the recession, this kind of financing is fully tax deductible.[3] Under Section 179 of the IRS tax code, up to $1 million in equipment financing can be deducted, as long as the equipment has been placed into service.[4] This is a great savings for businesses working to adapt to the new normal.
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