As a benefits agency working with small business we are keenly interested and aware of some of the problems facing business owners. If it is an established business or a new business the problems may be the same.
With personal foreclosures on real property and bankruptcy fillings growing it is not news that small business bankruptcies are also on the rise. There has been a 49% increase over last year with an average of 235 daily fillings in recent months according to the latest reports.
As a small business owner you may not be surprised to hear this with tight credit and rising cost squeezing the bottom line.
What can be done to work through these though times and get to the good times we all want to see arrive as soon as possible.
1) If you rely on credit in your business, banks are not going to make it easier even with all the fed interest rate cuts and may want some incentive to provide loan capitol.
2) Evaluating all the costs and revenue sources may help to keep things in line, including holding off on some expansion plans, and not adding new staff. In fact you may have to consider cutting back on staff. One consideration would be to increase the productivity of staff by offering incentives and benefits, which while adding some level of cost may in fact produce more revenue
3) Looking for value added services from your vendors which can enhance your operations without adding costs. Cutting benefit costs with lower cost plans and maintain contributions levels that are affordable.
4) It would be helpful to see both the federal and state governments provide some tax incentives and tax relief which while aiding the small business, which would lead to a strong economic picture and ultimately a broader tax base in the future.
As benefit consultants we can help you to reduce costs and add value through services like are HR and Payroll platforms.
Business Edge Newsletter current issue here
Recruiting: Staying One Step Ahead of the Competition
www.amsinsure.com
info@amsinsure.com
800-334-7875
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