By Karalynn Cromeens, Cromeens Law PLLC
It’s hard to believe, but Q4 is just around the corner. You might be thinking, “Hey, it’s only September.” But let’s level set: budget meetings typically happen in October and you need to research before allocating budgets in the new year. Plus, as business owners, we have to sit down early to make sure we’re prepared for what’s to come. We have to plan as well as we can for how the year might turn out and there are already a few things I’ve observed that will likely be worth our attention in the coming year.
Construction to Stay Strong in 2025
All signs are pointing to another great, strong year for construction. There’s still a lot of work out there that’s keeping things going. I’ll add that this comes with something of a caveat: most of this sustained growth is on the commercial side where there is a lot of continued investment. For residential contractors and subcontractors, high interest rates are continuing to keep investment lower which could make it a little more difficult to find newer projects. That said, they’re expected to drop a little bit as we head into the year even while they remain elevated, which could be a sign of good things to come for residential construction.
Election 2024
No matter which way November’s presidential election goes, it will have an impact on the way we do business since several parts of both candidates’ platforms (labor policy, economic policy, infrastructure, etc.) factor into how we do business. Plus, Wall Street is always impacted by federal elections which in turn affects our work. Put simply, the way the economy looks is going to be reflective of how our work looks regardless of where you’re at in the business. But while all that sounds like chances are up in the air, don’t sweat it. At least not too much.
There are a few things you can do to help insulate your business before the election.
● Reduce profit to reduce taxes; profit is taxable so by reducing it you’re reducing your taxable income which will help you save on taxes. There are a number of ways to do this, and if you’re looking at ways to improve or alter the finances of your business, I would recommend talking to a licensed financial professional
● Buy big equipment; large equipment is considered a fixed, long-term asset and a great capital expenditure to invest in to reduce profit and thus your tax bill. The reality is that it might get cheaper post-election, but it also may get more expensive. What you know now, though, is that you have x amount of profit and a fairly clear-cut and simple means of reducing it before the end of the tax year. Investing now is also a way to bet on yourself early and continue amassing assets when the state of things is better known.
The important thing to remember is that whatever gets measured gets managed. So as you and your team are sitting down to plan for the year ahead, make sure that you’re accounting for everything. Measure what you can, pay attention to what you can’t and 2025 will be all the better for it. Don’t get screwed by a lack of due diligence.
About the Author
With more than 18 years of experience in construction and real estate law, Karalynn Cromeens has filed more than a thousand lawsuits to foreclose or remove mechanics liens successfully. Her family also owns a material supply company, providing Karalynn first-hand knowledge of the construction industry. This personal understanding, combined with her extensive legal experience, guides The Cromeens Law Firm’s true purpose— To protect and defend all that you have worked hard for and be your partner in business. She is also a best-selling author and podcast host for Quit Getting Screwed.
