• Interest rate cuts: The Federal Reserve is expected to announce a cut in interest rates this year, ranging from a quarter to half a percentage point. This is a positive change after years of high rates aimed at controlling this country’s inflation.
• Impact on loans: Small businesses should consider refinancing their existing loans at lower rates. This applies to both fixed and variable rate loans, as well as personal mortgages.
• Revisit your investments: Lower interest rates may make certain investments, like purchasing equipment or property, more feasible for small businesses. Be sure to revisit any past financial analyses and investments you’ve made.
• New loan opportunities: With lower interest rates, it’s a good time to explore loans from traditional banks, community banks, credit unions, and the Small Business Administration (SBA). The SBA guarantees loans through its network of banks, making it easier for small businesses to secure financing.
• Investment yields decreasing: While lower interest rates are beneficial for borrowing, it also means lower yields on savings like CDs and annuities. Businesses should consider locking in current rates before they decrease further.

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• Current Startup Tax Deduction: Currently, startups can deduct up to $5,000 in startup costs, with expenses beyond that needing to be amortized over time.
• Qualifying Expenses: Deductible startup costs include market research, advertising, employee training, salaries and professional services incurred before your startup business officially opens.
• Kamala Harris's Proposal: Harris proposes increasing the startup tax deduction from $5,000 to $50,000, allowing small businesses to have more flexibility in when they can claim the deduction, especially after generating profits.

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Check out these four strategies to better control your inventory costs:

1. Outsource Freight Management: Small business owners can save time and money on inventory management by working with logistics companies or freight brokers for shipping, instead of managing it yourself. These experts can leverage software to find the best shipping rates and provide advice on consolidating shipments and timing.
2. Invest in Inventory Management Technology: Using upgraded inventory management systems and hardware are worth the initial investment because they can help save you money in the long run. Modern systems are often enhanced with AI capabilities and can provide real-time inventory tracking, automate reordering and integrate with freight services. All of these capabilities can help increase inventory control and save money.
3. Cut Non-Profitable Product Lines: It's important to evaluate your product lines and offerings to see if there's anything you can discontinue. Gene recommends using the 80/20 rule for inventory, suggesting that businesses should discontinue product lines that don't contribute a significant amount of profit. This can help free up resources to focus on the more profitable items and reduce your overall inventory costs.
4. Eliminate Obsolete Inventory: Business owners should plan to regularly review their inventory and remove any obsolete inventory. Obsolete inventory is not only taking up valuable space but also costing you money. Gene recommends writing off this inventory as a tax deduction because it's a loss. Plus, clearing it out will help free up space for your faster-selling products.

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