The 2009 Recovery Plan: What It Means For Your Business
reprinted with permission from HP

When the going gets tough, the tough have a smart game plan. And with over 2 million jobs lost in 2008, the situation is definitely getting tough.

Fortunately, the US has relieved our 26 million small businesses—those which gross $15 million or less in profits annually[1]–in more ways than one with its 2009 Recovery Plan.

The new plan not only gives small businesses tax breaks and credits, it also plans to give your customers more money by providing them jobs. In the meantime, though, one of the best ways you can take advantage of the plan is by carefully investing in the future with updated technology and energy efficient solutions.

Even for larger businesses that don’t directly benefit from the recovery plan, making these types of changes while business is slower can prepare you for when the economy picks up.

The government’s plan
This plan provides you with a myriad of opportunities to help your business. The new plan:

• Increases Section 179 expense deduction to $250,000 from $128,000 enabling SMBs to write off more machinery, supplies and equipment.
 
• Offers 50% bonus depreciation, allowing businesses to immediately write off half of a capital expense.
 
• Lets businesses use existing losses to offset taxes paid on profits in the previous five years, a practice known as net operating loss carry-back.
 
• Supports borrowing and lending by helping to unlock credit markets, eliminating fees for lenders and borrowers and offering relief for current debt.

You can review the entire bill here, and make the most of these extra funds. Plus, learn more about the federal business opportunities, and local opportunities from the recovery plan.

Your plan: build your business
One of the most advantageous uses for your forthcoming government relief is investing in equipment, specifically technology and energy efficient fixtures that bring your business up-to-date and save money in the end. And HP can help.

Spending to save
Of course, it seems strange make critical purchases during uncertain times, but investing wisely in IT can save you money long-term. According to Microsoft’s latest SMB Insight Report,[2] an estimated 55% of SMBs will maintain or increase IT spending year over year with carefully placed investments[2] that reduce operating costs, improve productivity and retain customers.

• Server virtualization: 50% of SMB specialists identified server virtualization as the technology most likely to reduce operating costs.[2] HP server virtualization solutions allow you to achieve improved productivity and uptime.
 
• Software as a Service (Saas): SaaS helps reduce software licensing costs. Instead of purchasing full licenses, software is used short-term as needed. Eduardo Rosini of Microsoft says, "When you look at the whole ecosystem with SaaS approach there's less upfront cost, less incremental cost.”
 
• Business intelligence: Help improve customer experience and loyalty with HP business intelligence solutions. Nearly 40% of SMB specialists expect an increased interest in this beneficial investment.[2]
 
• Remote workers: Decrease overhead and, in many cases, increase productivity by building an infrastructure that enables remote workers. Introducing remote worker capability also facilitates mobility which is efficiently achieved with innovative HP EliteBooks.

Energy efficiency, economic efficiency
People often forget that energy efficiency is a way to be kind to the planet and your budget. Using your stimulus plan to invest in HP energy efficient products can help you:

• Make the most of your technology by boosting productivity and your bottom line.
 
• Differentiate your business among clients and partners by being aware of the changing world and your efforts to improve it.
 
• Stay current with laws & regulations to save money on penalties and avoid updating technology down the road when it might interrupt a busier time.

In all, the new stimulus plan can be advantageous if you use it wisely to create a plan for technological advancement and financial stability. You’ll be able to not only survive these tough times, but succeed well beyond them.

[1] Coombes, Andrea. “Stimulating Work.” MarketWatch and Yahoo! Finance. 17 February 2009.
[2] “Microsoft Study Shows SMBs Using Technology to Cut Costs, Grow Business.” Microsoft. 25 March 2009.