How To Maximize Profits by Minimizing Overhead

Traditionally, middle management has been responsible for the management of payroll and human resources. Due to layoffs or the lean nature of new entrepreneurial businesses, middle management in seems to have all but disappeared and the tasks of payroll and human resources have been grudgingly assumed by top managers, business owners and admin staff.

This inefficient system has resulted in a decrease in innovation and profits. Kim Bolin, marketing manager for Horizon Business System, suggests methodically transitioning your way back to profitability by outsourcing day-to-day business management tasks.

Consider the following example of a typical small business. Let’s say you’ve decided to make widgets. Now, let’s assume that you become a widget expert and you make the best widgets ever. You know everything there is to know about widgets and how to make them. You’ve already got enough customers to start making a small profit and you love it enough to make it your life’s work.

So now you’re growing. You’ve added several employees who need to be trained, paid and managed. You have safety considerations to monitor. You have to obligations and everyone wants vacation leave, sick time and paychecks. Wow! Things have changed.

The truth is you’re no longer making widgets: you’re running a small business. Do you know what needs to be done? Are you sure you’re following all the rules, laws and regulations that are required to operate your shop? Let’s take a look at a list of the areas of operation that could be outsourced.

Managing Employees
Employee management is a huge part of daily operations and if not handled correctly, it’s a task that can take too much time and potentially cause serious legal or financial harm to a fledgling business. Business owners first must make sure they are in compliance with fair work laws, offering reasonable work hours and conditions, breaks, lunch times, holidays and sick leave.

Vacation and Sick Leave Management
Workers and managers must develop and maintain a system for tracking vacation time taken, earned and available, sick time taken, accrued and available and all other time and attendance issues. Vacations have to be coordinated so that shifts are covered and all employees are not gone at the same time.

Employee Mediation
Once a small business has employees there is always the possibility of conflict. Many times conflict can arise over vacation schedules, sick leave or any perceived unfairness on the part of one or more employees. These and other issues of fairness require a certain amount of knowledge about human resources and may necessitate training. Training takes time and can be expensive. Rules and regulations change frequently and frequent updates may need to be scheduled.

Bookkeeping and Finances
Handling finances is critical. Businesses exist largely to provide profit and income for the owners and workers. Businesses must manage everything from invoicing to payroll to taxes. All of these business functions are part of company finance. Books must be kept, and phone calls and email about payments, taxes or payroll must be answered quickly. And to maintain a good reputation within the business community, businesses must make sure that all financial issues are handled in a timely manner. Usually small business owners at least need to hire a bookkeeper or an accountant. Sometimes several positions must be filled in order to manage company finances.

Internet Marketing and Social Media Management
Now that you’re spending so much time managing your existing business, it becomes increasingly difficult to maintain those old contacts that got your business up and running in the first place. At this point it becomes necessary to begin and manage at least some type of marketing efforts. It can take considerable time to advertise and maintain all the activities that go into a good and affordable marketing campaign. Today, social media management and website management are a large part of most marketing efforts. This takes a great deal of time on a daily basis. Staying current and active on the web can be a job in and of itself.

Logistics
Don’t forget that while you begin to develop your marketing campaign, manage all staff issues and handle finances, you must continue to fulfill orders with the same great product quality that got you started. Without a great product delivered on time you won’t stay in business long. Great products and terrific customer service are the keys to staying on top.

HBS offers a number of business management experts who can oversee payroll, bookkeeping, taxes, human resources and training. We also offer a list of preferred providers for logistics and Internet marketing services.

So if you want to get back to the business of making widgets and be sure you’re staying current with the latest trends and technology in your field, call the business experts at Horizon Business Solutions at 614-577-1700 or check out their website at www.horizonbiz.com. Let Horizon free up your valuable time and perhaps help you make the widget of the future! Call today!

Kelli Minor Horne | 06/22/2012

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How To Maximize Profits by Minimizing Overhead