One of the big pitfalls small business owners must avoid is escalating overhead costs. High overhead can drive your prices so much that you allow your competition to beat you in the marketplace.
Even worse, your business may fail entirely without the right balance between costs and profits. One of the top reasons businesses fail is an inability to nail a profitable business model.
But remote employees could be the key to managing your overhead. You can sacrifice high costs without impacting the quality of your business operations.
Switching to remote teams is easier than ever with the technology tools each business has access to in the digital economy. Here's why cost-effective remote teams could be the answer your business is looking for.
1. Real Estate Costs
One of the largest expenses for any company is real estate costs. You could be spending thousands of dollars a year on each employee just to make sure they have an office to come to.
The next time you think about a lease, make sure you calculate what you could save if your team went remote.
2. Lower Costs Per Hour
If you expand your search criteria beyond your location, you may save big money on salaries. Depending on the cost of living where you operate, you may find stronger candidates far away who are willing to work for lower wages.
These lower costs come with better coverage. You can have a team across different time zones in line with your clients.
3. Save on Operations
How much does your company spend on other expenses for your employees? What are the costs for electricity, heating and cooling, snow removal and landscaping?
Too many small business owners look at their costs in silos. They don't understand the impact of items like office supplies and coffee when performing a cost and benefit analysis.
Remote teams mean you won't have to pay the expenses for basic in-house operations.
4. A Larger Talent Pool
If employees are essential for the success of your company, why limit your search for talent?
One of the benefits of remote employees is a larger talent pool. You can get the best and brightest even if they aren't within commuting distance to your office.
And in case you're worried that remote teams mean high administrative costs, don't worry. You can handle tasks like tax preparation with a handy online W2 generator.
You'll have the strong support you need without the headaches of large administrative costs.
5. Higher Retention
Happy employees mean lower turnover. Ask any Human Resources professional and they will explain the high expense of turnover.
For every employee you lose, you need to recruit and screen new ones.
Higher retention will lower your training costs and reduce overhead.
Moving Beyond Remote Employees
While remote employees may be key to the success of your company, they aren't the only factor. There are other facets to your operations that may be driving high overhead costs and working against your growth.
Small business owners don't need to shell out big expenses in order to become profitable. Make sure you control overhead by learning how to run your company on a shoestring budget.
