Signtronix Sign Company

Financing: A business plan should include signage as a major part of the marketing strategy. Because signage is vital to a small business it should be included in any loan package. Your Signtronix sign is a permanently visible part of your business and should be considered as an investment. Signs are the most efficient, effective and consistent revenue-generating device for small business.

Starting a Small Business Video

Choosing Appropriate Signage: Consider type, cost and maintenance before selecting a sing. Many sign companies have designers to provide cost-effective signage. Many start-up businesses order a sign based on an attractive business card or letterhead design, but small businesses can learn from large multinational corporations who understand the importance of a recognizable logo. Rather than ordering a sign from a business card or letterhead, start with designs suitable for an integrated business-marketing plan.

Type and Design: There are many types of permanent, on-premise signs to serve your business — freestanding, high-rise, low-profile, wall, projecting, roof, marquee, backlit awning, awnings, etc. Type and size of sign are often regulated by local zoning ordinances. Also consider illumination, which draws attention to your business around the clock, and changeable message capabilities, such as electronic message centers or readerboards.

When choosing a sign, remember to consider the image of your business, the profile of your potential customers and the cost.

Purchasing Or Leasing A Sign: It is advantageous to purchase or lease your sign from a reputable company. Experienced sign companies are licensed and bonded contractors who are familiar with uniform building codes and regulations. Reputable companies deliver quality goods, thus reducing maintenance costs and potential public liability.

A good company carefully designs and constructs signs adhering to local building codes and design standards which enhance the environment and create a good image for your company.

Maintenance: No business can afford to have its sign in disrepair. A dilapidated sign implies you are not concerned with your business or your image or that you are going out of business. Some sips are virtually maintenance-free while others require more attention. Establish an appropriate and cost-effective maintenance routine for your sign or lease your Signtronix sign to secure built-in maintenance service.

Advantages Of Signs To A Small Business

A Sign is Necessary to the Success of a Business: Many industries can attribute a large percentage of business to their signs. Some fast-food outlets attribute as much as 80 percent of their business to their on-premise signage; the travel industry 30 percent; gas retailing 50 percent; and hotels and motels 50 percent. A visible, readable sign can make the difference between profit and loss for many businesses.

Advertising Cost Benefits: When compared to other advertising costs such as radio, newspaper, television and direct mail, an on-premise sign is inexpensive. For example, the cost per 1,000 adult exposures with a sign is only a few pennies for 24-hour-a-day coverage. In addition, an on-premise sign cultivates cumulative, long-term awareness of a business, stimulating repeat or “brand-loyal” buying of the products and services offered.

For businesses with a limited advertising budget, a Signtronix sign is an inexpensive method to maximize returns per dollar spent.

December 5, 2007

Thanks to the purchase of our new lighted sign, our evening sales have increased.  We purchased the restaurant last year, and the sign we bought just had our name on it and didn’t even tell what type of business we were.  The salesman for Signtronix, Mr. Peach, was very helpful in designing a new sign for us.  The sign was delivered ahead of schedule and we have received many compliments.

Sincerely,

Casandra @ The Depot Restauranct

Jonesboro, AR

Thanks to our new Signtronix sign, we have grown faster than we had
anticipated, therefore, rapidly attempting to adjust to our 30% increase
of new customers this past month. Every week that goes by is better
than the previous week.

This past month, we received and put up the Signtronix sign on the same
day, June 20, 2007, and noticed an immediate reaction.

Thanks to Steve Harms, your Signtronix representative, and the expedient
service that we got from Signtronix, we are very pleased and satisfied.

Sincerely,
Gary & Mary Johnson
Komana-I-Wana Hawaiian Shave Ice
Austin, TX

Some Highlights from this Signtronix:

• Items you may want to mention to customers when talking about benefits of leasing:

• A lease does not affect a borrower’s ability to qualify for other loans.· A low monthly payment (that is paid by the increased cash flow) relieves the pressure of the business to be able to add more inventory.

• The old Tax Codes allowed leases to be expensed as advertising on the income statement.  After being paid-off, the lease could be “adjusted” and capitalized; which, in turn could be depreciated at 200% on the income statement.

• The new Tax Codes are even better.

• In response to the customer who says he pays cash for everything, tell the customer that he can now depreciate 100% of the (lease) price of the sign immediately.  Simultaneously, he only writes a check for one-fourth or one-third of the actual (lease) cost.  This is better than paying cash for everything.  All succeeding payments become money that would be paid in income taxes anyway.

Respond Signtronix Signs Company

To complete this, Signtronix quotes, As you know, knowledge is power; but, a little knowledge is dangerous.  I advise you not to get involved in accounting discussions that you can’t back up with an accounting degree or certification.  This information is provided to make you more passionate about lease/purchases.

Hopefully this article helps you to believe that leases properly done are good tools for the businesses using them, as well as to the salesperson who promotes them.

With that in mind, it is easy (signtronix signs) to tell the difference between tax accounting (i.e., accounting for the sole purpose of paying taxes and complying with law) as opposed to tax strategy.  There is also a difference between a lazy, high-paid accountant and one who works diligently and hard to constantly save his clients tax dollars.

REMEMBER, THE CURRENT TAX Codes are designed for the so-called average small business to spend about $10,000 per year on capital purchases.  (That’s a digital message center per business per year.)  This is designed by the U.S. Congress to stimulate the economy, because capital expenditures by businesses really work the best and fastest at economic stimulation; therefore, favorable lease/purchase laws will be around for a long time.

In any event, we should suggest to our customers that they should always consult their accountants.  The Tax Codes constantly change; and, most sign salesmen (except for me) are not accountants.  Don’t try to be an accountant - this information is provided to help you promote leases and answer silly leasing objections.

Most CPAs are of the opinion says Signtronix, that a business should lease/purchase “income-producing property” and pay cash for things that simply cost a business money that doesn’t generate any income.  When that is done, the business can depreciate 100% immediately while paying $100 per month, for example, for three or four years.

The “time value of money” means that a business receives a 100% immediate depreciation expense (a non-cash expense) for a small monthly payment that will be paid with “cheaper dollars” at a future date!!!  And, all those “future dollars” can be used to buy “today’s” inventory .  .  .  That converts to cash “today”.

Again, the current Tax Code literally pays for 75% of the sign .  .  .  In the first year with a lease/purchase using today’s Tax Code.  I realize that accounting articles are a turn-off for most non-accountant types.  But, most business people know that the price they pay for an accountant should be paid by the money their accountant saves them every year.

However says Signtronix Signs, businesses can now depreciate 100% of the value of the asset in the first year!!!  Again, this is a non-cash expense on the income statement (100% depreciation the first year with only one-third or one-fourth of the asset paid - not bad!)

Therefore, in response to the customer who says he pays cash for everything, tell the customer that he can depreciate 100% of the (lease) price of the sign as “Depreciation Expense” on his income statement, which is a non-cash expense.

Simultaneously, he only writes a check for one-fourth or one-third of the actual (lease) cost.  This is better than paying cash for everything.  All succeeding payments after the first year is money the client would pay in income taxes anyway.

Signtronix Signs - By the time an asset was paid/adjusted/and depreciated, 75% of that asset was paid by what normally was paid in income taxes over 3 to 10 years.  Section 179 of the current Tax Code states that a “Fair Market Value” lease can be capitalized on the balance sheet as a “Fixed Asset,” namely, “Sign.”

LEASE PURCHASE PAYMENTS are treated as a “Liability,” similar to a mortgage payment - which also remains on the balance sheet (as opposed to the income statement).  Only the monthly payment goes on the income statement as an “Expense.”