Most small business owners are constantly looking for ways to make their business more profitable. That is, after all, the main reason they are in business. Many business owners keep a close eye on their payroll, pricing and marketing efforts. There are several ways that business owners can save immensely that far too many do not realize. Here are 5 ways small business owners can improve their bottom line without much time or investment on their part.
Create your own Best Practices
Every industry and every business has their best way to operate. Once you have found policies that are tried and true you must find a way to standardize them for everyone in your organization. This is key for industries that have a lot of turnover, but it is also useful for all businesses. No matter how loyal your employees are, you cannot leave your business at risk if a key employee does decide to leave the organization.
Know what you know and know what you don’t know
Business owners are usually successful and brave individuals. They have to be to open their own business, but those same traits that attract them to being entrepreneurs can be their downfall if they do not check their ego at the door of their business. Someone who builds houses has to realize when it is a better idea for his business to hire an accountant instead of filing the businesses taxes him or herself. That is true no matter what industry you operate in.
Choose Pay as you go workers’ compensation
Pay as you go workers comp insurance is a great option for seasonal and cash strapped businesses. This option allows most small businesses to get coverage in place for as little as a few hundred dollars as opposed to having to put down 25-30% of the premium up front. Businesses are able to pay their premium monthly based on their payroll each month. This prevents over or under paying and prevents most mid-term audits. Many small business owners appreciate this option because it allows them to free up necessary cash flow for more immediate needs that directly impact the business.
Monitor your results
It is amazing how many businesses do not monitor their businesses metrics on a weekly, monthly, quarterly or even yearly basis. There are many software programs out there that can help you keep up with these statistics. Knowing how well you are doing compared to this week or month from a year ago is essential to improving your business.
Make sure you are properly classified for workers’ compensation coverage.
Many businesses are improperly classified by their insurance carrier. Taking a few extra moments during the quoting process to speak with your agent about your business can help save your business considerably. This is especially important if your business operates in an industry that has many different workers’ compensation classification codes. Landscaping and construction are two industries where there are very different types of businesses that take dramatically different types of risks. If you speak with your agent clearly and honestly about what your business does on a daily basis it can prevent you from being in a classification code that is more expensive than what you should be placed in. It also can prevent you from having a surprise at the end of the term because you were placed in a less risky classification code and you now owe a larger amount in premium. An end of term audit is always done and these discrepancies are usually found. Classifying your business properly up front can help your business immensely.
Walt Capell is the President/Owner of Workers Compensation Shop. 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.