Small businesses may have to work harder than large corporations in order to earn a profit, but it’s not an impossible task. Although they work with smaller budgets …
Small businesses may have to work harder than large corporations in order to earn a profit, but it’s not an impossible task. Although they work with smaller budgets and tend to have a smaller niche market, small businesses can still find much success and secure themselves as a business with strong financial growth. There are so many reasons to own a small business that it’s almost a bad decision not to.
Because small businesses have a smaller budget, they need to be creative with their business decisions as well as use various tools and resources to help the business remain successful. The following are three small business essentials that every small business owner should consider possessing in order to keep their business afloat.
Human Resources Representative
Small businesses don’t have to follow the same laws and regulations as larger corporations. For example, there are different rules for small businesses regarding Obamacare than there are for larger corporations. Because of the varying rules, and just to keep regulated peace in the office, every small business should have a human resources representative on hand. This doesn’t mean that your small business has to shell out thousands of dollars a year in a salary for an HR representative. Obviously, if you have the capital, you can certainly hire someone to be on your staff, but if you don’t have the capital, you can outsource your HR needs to an HR company. Using this option, your company will typically pay a monthly (or yearly fee), and you’ll be able to have all the HR expertise you need when you need it without having to staff someone in house. These companies will provide your company with all the HR information and tools you may need, from insurance options to hiring processes to any legal information you need for tax purposes.
Small Business Accounting Software
While many small businesses may wish they could staff a talented accounting team in house, smaller budgets don’t make this possible. Instead of trying to keep the books yourself on your own using Excel or (gasp!) a pen and paper, your small business needs to invest in small business accounting software. There are different programs on the market for different skill levels, so even if you have no idea how to keep the books for your business, the software and the tutorials will help you. This way, you can ensure that your company’s books are always up to date. This will allow you to know how much capital you have on hand at any given moments to make better business purchasing decisions. It will also come in handy if your small business is ever audited by the IRS.
As a small business, you want to find every possible way to cut down costs. If owning or renting a brick and mortar store/office is not essential to your business, then opt for a virtual office instead. Working out of your home and allowing your employees to do the same will greatly reduce costs for your company and allow you to have an increase in profits. Be sure to invest in virtual office software and technology, such as video conference technology, so that you and your team can still have productive meetings, just in a virtual setting. Some virtual office packages will even allow you to rent a conference center or physical office in a local building if you are ever in need of a place to host some face-to-face meetings or events. This cost is much less than what you would spend on a mortgage or rent every month, and it’s a great way to keep your company in the 21st century.