In today’s economy, all successful small businesses are looking for any and every way to lower costs for the business. Many small business owners fail to dedicate enough attention to this because they are spending the majority of their time doing what they do best, which is run their business. If you are a business owner who is like this, it may be wise of you to assign an employee to examine all expenditures at your business. There are many ways in which a business can save money. Here are 6 ways most business owners can save money for their cherished investment.
Hire smart, inexperienced people.
That is right I said hire inexperienced people. Experience is not the only thing of value someone can bring to your organization. Experience certainly costs more. One way to do this is the next time you put up a job ad, eliminate any mention of how many year’s experience someone must have to apply for this job. Replace it with “Recent graduates welcome to apply.” Some businesses have used this approach to success and hired candidates fresh out of college or graduate school. This allows your business to gain a monetary advantage by providing an entry-level salary and can benefit you by having employees who are up-to-date on the latest technology.
Make sure your business is classified properly.
This is most important for purposes of Workers Compensation Insurance. Many industries have several different classification codes because the industries have several different types of businesses with different levels of risk. The different levels of risk are reflected in the price businesses pay in premium. Landscaping is a great example of an industry with many classification codes. Some companies simply mow lawns, other companies plant and maintain sod, others climb into trees with chainsaws to cut limbs and branches. Each type of business has a different classification code and each level of risk pays a different price in premium. Taking a little time to speak with your insurance agent about what exactly it is that your business does and does not do can save your business significantly in premium paid for workers’ comp insurance.
Try bartering with other businesses
Bartering is one thing successful small businesses are usually great at. Especially bartering with other businesses. Bartering might seem old-school but it can definitely be effective. Catering companies and coffee shops frequently work with companies, especially start-ups. If you have something of value to provide them they may be willing to cater an event of yours for free or at an extremely discounted rate. Actually, the possibilities are endless as long as you proactively establish relationships with other local businesses who can benefit from your services.
It should be no surprise that banks are looking to squeeze more revenue any way in which they can. Banks after all are a business too and they need to turn a profit. There is one fact many people and business owners fail to realize in relation to financial institutions: they are a business as well and they have to pay turn a profit in order to continue providing you the services they provide. partner. The industry is necessary for success in both your personal and professional life. Switching financial institutions frequently is not a great idea, but shopping around to ensure your bank is competitive with other banks in your area is in the best interest of your small business. If you can cut significant costs by switching to another bank, then it may be just what you need to do to save your company money.
Invest in a safety and return to work program.
You might be wondering why I am telling you to invest in something as a way to save your business money. Especially investing in something like a safety program. Healthy employees are happy employees and happy employees are productive employees. Investing just a little time in an effective safety program can save your business immensely in lost productivity and insurance premium. A return to work program is an essential part of any safety program. The quicker an injured employee gets back on the job and in the routine of going to work, the more likely they are to return to regular employment. This will prevent your workers compensation insurance premium from increasing from having too many to too severe claims at your business.
Telecommuting isn’t possible for all businesses, but you might be surprised how many people can effectively do their jobs from a remote location. If you can find ways to allow employees to telecommute it can be a huge money-saver for your business. It can cut down on wear and tear to your office space as well as your electronics. Meaning you will have to replace these devices less frequently. Many employees appreciate the opportunity to work from home and it may be a benefit you can and to their compensation package instead of a higher salary.
Walt Capell is the President/Owner of Workers Compensation Shop. Walt started Workers Compensation Shop in 2005. Workers Compensation Shop is a rapidly growing national insurance agency with a strong reputation for forward-thinking, out-of-the-box products and solutions for business owners. Walt would like to use his experience in insurance and as a small business owner to benefit the small business community.