It’s a new year and we know what that means for us alongside many other founders and business owners out there: tax season is upon us. Having a profitable year is one of many accomplishments to be proud of - but what can you do to ensure your success and profits continue to scale?
What about using your profitability to add another product to your product line? While many executives and product owners are hesitant to dive into R&D during a recession, let alone a pandemic, studies have actually shown that investing in innovation during such a time can propel a business and its profits forward and bulldoze through such harsh occasions, leaving founders and CEOs with a greater advantage over their competitors afterward.
“A mid-crisis answer to what’s next on the innovation agenda is crucial for delivering outsized performance. During the first five years after the Great Recession of 2008, CPG leaders that could answer this question outperformed the market by an average of 20 percent.”
— mckinsey.com
Recent studies from McKinsey & Co. have also proved that companies “looking beyond the immediate challenges and into the next normal...emerge stronger.” This is a clear win-win for your business’s profitability and future brand loyalty; by investing in the research and development of your next product prior to year’s end, you’re saving on taxes and creating additional returns on your investments.
To explain the importance of investing in future products (and saving on taxes as a result) in further detail, our founder and CEO, Jason Klug, recently had a conversation with CPA Ryan Rees of Hartle & Rees, LLC answering some questions and detailing the tax implications of R&D for new products. Watch the quick Zoom conversation below:
It's the last quarter of the year and we know what that means for us alongside many other founders and business owners out there: tax season is upon us. Invest in your future and Get Ahead in 2021!
