Ben Means Business

Tax Rebate checks have been a hot topic since the start of 2008. Since then, most people have been bent on buying new “toys” or catching up on bills. However, as entrepreneurs, it is important that we take full advantage of this unexpected capital. While there’s nothing wrong with paying bills, I think that your government rebate check will be much better spent if you invest it into your business and allow it to grow into something much more significant.

With that said, I’ve comprised a list of 5 things you can do with your rebate check that will pay you a lot more in the long run. (Keep in mind that most people will get a check between $300 & $1,200)1) Buy More Inventory

Most small businesses are forced to use profit from previous sales to buy more “product”. However, there’s nothing better than being able to earn a direct profit from capital that you did not produce. This frees up funds and opens the door for some very smart bookkeeping. Your business will immediately move to the next level.

2) Buy Marketing Materials

Marketing is one of those important things that small businesses neglect because they lack the funds to do it successfully. However, your tax rebate check is a great way to expand your marketing efforts. So go out and buy ads, get that website built, buy business cards, etc… Do anything that will create brand awareness. Trust me, you will be glad you did!

3) Expand to New Markets

Preferably foreign markets..but if your business is local or regional, you should look at what it would cost you to offer your business to a wider market. With the many uncertainties that surround the U.S. economy, it is imperative that we broaden our reach so that our businesses do not go under in the event of some type of crisis. (see also: Export Trade)

4) Buy Back your Freedom

Some people pay for part of their business on loaned or borrowed money and have been using a cut of profit to pay back these funds; Others get partners or stockholders to help cover expenses. If either of these apply to you, I suggest that you use your tax rebate to help buy back your freedom. You want to get rid of all the entitlements while your company is still small. A “buyout” will cost you a lot more in the future and you want sole possession of all profits when your business reaches maturity.

5) Put Rebate In Business Savings

I am not a fan of this method but it is a lot better than blowing the money. At least with this method the money will grow, it will just grow at a much slower rate.

No matter what you decide to do with your rebate check, just make sure that it will generate some money for your business. Spending the check on things that you have the ability to do already is a bad idea. Use Robert Kiyosaki’s principal on this one, “put the money to work for you.” Anything else would just be considered a blown opportunity(and a blown check)!

Also, for those of you who have yet to receive your rebate, the IRS has created an online tool that will tell you how much your check is and when it will be mailed(or deposited). Get your rebate information here.

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