Five Tips for New Entrepreneurs for Keeping Employment Costs Under Control
In these uncertain economic times, the prospect of starting your own business can be quite intimidating. Not knowing whether or not you’ll lose your life savings trying to follow your dream of owning a business is terrifying. While it’s true that you have to spend money to make money, it’s important to keep costs down as you grow and develop your business.
Some expenses you can’t dictate. However, you can control what you spend on your labor force.
Here are five important ways budding entrepreneurs can manage their employment costs.
Start Out Small
Resist the temptation to hire more personnel than you really need. As a new business owner, you’re going to end up wearing many hats. Before bringing on a new team member, ask yourself if you’re hiring them for convenience or because they’ll truly be a lasting asset to your company.
For example, do you really need a personal assistant? Make your own coffee and type your own correspondence. Take your own suits to the cleaners. Yes, it can be time consuming, but think of the money you’re not spending on wages for an employee to do those same tasks. Manage your time efficiently so you can be your own first and best employee. Save your money and invest in quality, not quantity, when it comes to choosing your team.
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Hire the Best People
Speaking of quality employees, they aren’t always easy to find. You want to locate employees whose passion for growing your business matches your own. While it may take slightly longer, interview multiple candidates so you know you’re choosing the right person to join your company. Take the time during the hiring process to thoroughly vet potential employees. Investigate their backgrounds and check their references. Make sure they’re truly a good fit for your company. Nothing is more costly – and frustrating – than bringing on a new team member only to have to replace them because they aren’t up to the task at hand.
Keep the Lines of Communication Open
Michael Beattie, founder and CEO of MBM Consulting in Toronto, stresses the importance of communicating your focus to your team, so that every member is equipped with the knowledge to impact positive change as your business grows. If you can effectively communicate your goals to your employees, they’ll be more apt to help the company achieve success. Listen to them and be receptive to their ideas. Meet with them regularly so you know everyone is on the same page and razor focused on meeting the company’s goals.
Give Your Employees the Tools They Need to Succeed
MBM’s Michael Beattie also advises new business owners to give their employees the tools they need to effect positive change. Encourage them to pursue professional opportunities. Whether it’s education, training, or support, identify your employees’ needs and meet them. Any money invested in helping them become more knowledgeable or skilled is money well spent and will likely pay dividends down the road.
Don’t Be Afraid of Change
You had a great idea when you started your business, so much so that you brought others on board to help it expand. Those same people have knowledge and skills you might not have, so use that to your advantage. Be receptive to new ideas they may have, and you may discover a cost saving strategy you hadn’t yet considered.
