Sheryl Sandberg, Chief Operating Officer of Facebook, spoke with Bloomberg about their 56% growth in advertising revenue and how it relates to post-pandemic trends in small businesses. As businesses struggle to get customers in the door, they are turning to both e-commerce solutions and social media marketing to recapture their audience and boost sales.
Sandberg said in an interview with Bloomberg News,
“That digital transformation will continue to happen, it might happen at a slightly slower rate but I think that the transformation and people moving to be online is going to continue to happen.”
Facebook Prioritizes Small Businesses on Advertisement Space
A recent survey released by facebook revealed that 35,000 small businesses are represented on their social media platform in July and August of this year. The company has prioritized small businesses in its policy and innovation as they make up the majority of the advertisers on the space. They’re currently battling tech mogul, Apple, in campaigns against their data-collection updates. Their claim is that small businesses who can’t afford blanket ad campaigns rely on these data features to stay afloat during such difficult times.
“Apple’s privacy changes are really hampering their ability to do personalized ads and they really do need to do personalized data. They need to find people who like yoga and meditation in their particular part of the country”
The Key of Structuring Businesses to Qualify for QSBS
Small Businesses that qualify under Section 1202 for the 100% federal tax exemption on eligible capital gains may also find themselves in a similar position amid the global pandemic. Social media has become the easiest way to affordably target niche audiences often served by startups and other up-and-coming businesses. Many businesses switched to a digital model over the past few years and many newly-formed C-Corps have taken these pandemic trends into account during their formation.
As entrepreneurs seek ways to structure their business and business model in rugged and resilient ways, it is necessary to consider the long-term benefits of Qualified Small Business Stock. Certain requirements must be taken into account during company formation and others should be monitored over time to maintain eligibility. In order to see if your small business could qualify for up to 100% tax free capital gain, visit QSBSExpert.com or contact us to learn more.
This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.