With unemployment being at an all-time low, many businesses are competing with each other to hire and retain qualified workers. As a small business owner, you may be finding it challenging to be going up against larger corporations to attract qualified workers, who have the resources and capital to be able to offer better pay and more extravagant benefits. However, there are benefits your small business can provide to current and future employees to entice them to your business.
Reduce Costs for Better ROI
Business owners can look through their monthly expenses to see if there are areas that have unneeded expenses that can be cut and the money shifted to payroll. It is best to work with an experienced accountant to help you find and cut out unnecessary expenses and also provide proactive advice along with a payroll budget to help you from going into the red over wage increases.
This is an option that many small business owners like to use as a last resort, but if you are unable to find enough cost cuts in other areas, you may need to look at price increases. A number of small businesses in Boston recently held a conference about holding off on having to increase prices, but feel that will happen soon as their profit margins continue to decrease. You may fear raising prices due to the belief you will lose customers, but you can take comfort in knowing your competitors will be forced to raise prices as well.
Cut Down Operating Hours or Employee Hours
Are their certain days of the week or times of the day that your business is open but does not bring in enough revenue to keep the doors open at those times? This will not only keep your payroll costs down from not having employees at those times but will also decrease some of your overhead expenses as your business will not be running during those slow days or hours.
If your business is unable to cut down on operating hours than another option would be to set limits for overtime with non-exempt employees who would have to be paid time and a half if they work over 40 hours. You can also speak with some of your full-time employees and ask if they would be willing to convert to part-time.
This is another hard decision for small business owners during hard times, as your employees become a part of your family. Unfortunately, in being a business owner you have to make some tough decisions in order for your business to continue going on. If your business is unable to find other ways to increase revenue or reduce costs than it may be the only option that will keep you from shutting the doors. However, it is best to find and work with an accountant who may be able to find other ways to reduce costs or increase profits before having to cut your staff.
Cutting Down Offerings
During good times your business may start to offer new products or services to bring in some extra cash flow, however, during hard times these can prove to be costly. Does your business have a product or services that is not bringing in the revenue you had hoped for? Looking through the products or services that are underperforming in your business and cutting them out can help increase your profit margins and give your business a cushion for payroll increases.
The wage increases continue to be a controversial topic in states and the federal government, with many small businesses fearing forced wage increases can bankrupt them. To help your business prepare and survive through current and future wage hikes, you should look to hiring an accountant