5 Ways to Cut Operational Costs
Running a 1-man shop was pretty great, wasn’t it? Operational costs were relatively low …. no office lease, no employee benefits, no payroll, just one or two insurance providers.
However, most successful businesses grow over time. From one employee …. To two…. To three…. To one day waking up and having a department of 20 fulltime employees!
Gone are the days when your business’ monthly accounts payable page consisted of your own health insurance and an occasional dining expense for client entertainment! But chin up; an increase in operational costs is often a sign of growth. It’s important not to get tied up in the growth phase though, and forget about the expenses that are piling up. Did you know that keeping ongoing and recurring expenses under control is an important part of ensuring continued growth and success? It’s not just about increasing income!
Employer Solutions Plus recommends analyzing these 5 operational expenses. Decreasing them will result in a bigger and better bottom line each month.
- Payroll Administration: Payroll fees often depend on the number of employees that you have and the number of payroll periods each month (which determines the number of checks prepared each month). The market is highly competitive though and pricing should be relatively negotiable. Do you have unnecessary charges each month for payroll services you aren’t utilizing? Could you save $2.00 per paycheck each month by switching to another provider? It may not seem like a lot, but if you have 60 employees that get paid on the 15th and 30th each month, that’s 120 checks – you’ll save a few hundred dollars a month by switching!
- Lease Agreements: Landlords are more willing to renegotiate a lease in an economic downturn or when an existing tenant inquires about the rent. Have you been a great tenant for several years now? Use that to your advantage! Your landlord would probably prefer that you stay put versus starting over with someone new!
- Credit Card Processing: If your business accepts credit cards, you’re probably paying your processor too much for convenience. We understand that convenience comes with a price, but like payroll administration, credit card processing is a very competitive market.
- Benefits: Health insurance is a large and recurring expense for most businesses. Click here to read a little bit more about ways to lower your company’s health insurance costs – immediately!
- PEO: Do you work with a PEO? If so, they’re probably saving you a lot of time and money when it comes to employee management and HR administration. But, there are nearly 800 PEOs in the United States – How do other PEOs compare in price? Is there a better fit for your organization?
Don’t have time to shop around? At Employer Solutions Plus, we represent multiple providers in payroll administration, PEO solutions, and benefits. This allows us the flexibility to customize a cost effective solution to meet the individual needs of our clients (while saving you money, too!). Contact us to discuss your business’ expenses; everyone has some room to save!