Category Archives: Business/Business idea

4 Financial Benefits of Captives

Captive insurance companies are created and controlled by the businesses they insure. This self-insurance is used to mitigate risks that cannot be or are difficult to insure, including product liability, litigation fees and malpractice. Any of the claims made against these businesses for their covered risks are paid by the captive, protecting corporate assets.

Tax Benefits

Captive insurance, including group captive insurance, has several tax benefits. For example, company premiums are not considered taxable income for the captive, but it is also a tax-deductible expense for the parent company. In addition, as the captive’s assets increase, they can be distributed to the company’s owners as dividends, which have a significantly lower tax rate than income.

Cost Reduction

Not only do companies accumulate (and protect) assets through captives, but they also reduce their costs. They have reduced operating and administrative costs for the captive. In addition, companies are able to tailor their coverage, so they are not paying for coverage they do not need. They determine their deductibles and incentives for loss control. Finally, they gain access to the reinsurance markets, which would have been unavailable without the creation of the captive.

Risk Reduction

Not only do captives provide policies that protect the company, but the underwriting process identifies corporate risks and their probabilities. This allows companies to create new processes that improve safety and reduce risk. As businesses focus on risk management, they reduce their premiums. This focus may then spread to other areas of the business, improving safety and risk  throughout the entire company.  

New Income Stream

Because captives are businesses, any company that starts a captive is actually starting a new business and entering a new industry. This process distributes corporate risk among industries. In addition, as they grow, captives can become full insurance companies, offering insurance services to clients outside the parent company and creating a new revenue stream.

Because of the capital investment requirement of captives, consider researching all your captive options prior to investing.

The Power of Trade Shows

Do you want to find new clients, meet with potential business partners and study your competitors? Trade shows are golden nuggets for companies and their industries. They give you the opportunity to showcase your services and get feedback from others in the same industry. Here is how you can make a powerful appearance at your next trade show.

Image by purplegillian from Pixabay

Be Professional

Most companies have a booth set up at the convention. This means you may have to find some equipment and booth rental storage Boston MA. You need a booth that radiates with professionalism. You’re not advertising a science project, but rather an expert view in the industry.

Your staff should look the part. Their business attire can say a lot about how professional your services are. Keep your booth looking organized and modern and reach out to those interested in what you do.

Be Different

Although you may look professional, what makes you stand out among competitors? This calls for a creative touch in the colors, text and technology at your booth. Find what makes your company stand out and highlight it through expert design.

If you want to catch the attention of viewers, offer free swag. Not only are they cool gifts, but they can be a future marketing generator as people show off hats, stress balls and cup holders with your logo on them. Find creative ways to show who you are.

Have Fun

A trade show can be a fascinating place. If you have time, visit other booths that are there. Consider working with others, discuss the latest industry updates and enjoy the unique atmosphere. Trade shows often offer workshops or training that can supply new information and help you improve your business.

Attending trade shows can be a great asset to your company. Find ones that fit your niche and start thinking up some exciting booth ideas.

Finding the Perfect Commercial Property in Billings, MT

Is your business in the right building? A good commercial property will go a long way towards growing your business, whereas the wrong space may stifle and limit your competitive edge. Before you commit to a business location, consider the following important aspects of locating your company.

Location

The old real estate adage is true. It really is all about location. Find a space close to customers and suppliers and the area where your clients are likely to shop for the goods and services you offer. Also, consider the ability of your employees to reach the location. Can they take public transportation to get there or do they have to have a car? Accessibility for customers and employees is key.

Facilities

Do you need to have restrooms for the customers? Is there enough workspace for the employees in the back? It doesn’t matter how cute the storefront is if the facilities are inadequate. Don’t forget about the parking situation. Parking Billings MT can be at a premium in some areas, so you need to be sure there is enough parking either in a lot or on the street for your clients.

Size

Plan for growth. After all, that’s what you want your business to do, right? There is a happy medium here. Don’t go so big that you are paying rent on a lot of empty space, but don’t be squeezed into a corner, either. Spaces that have additional adjacent units that could be rented in the future are a great solution. 

Operational Costs

In addition to the rent, you will be paying utilities, such as water and electricity, and security costs. Ask to see the previous months’ utility bills. Know what the average has been for summer and winter. Make sure you can afford these costs before you sign the lease.