The One Percent Solution For Today's Businesses

It should be obvious to all that business hasof their clients? Have they offered any help or
changed from times past. The amount of layoffs,advice in these tough times? Do they return your
reduced income, and increased worry is taking itscalls or better yet actually call you?
toll on all employers and employees. What can be5. Employees. Do you have a problem employee?
done about this that is actually doable?Why are you putting up with that? There are
There is plenty that I have seen successfullyplenty of highly if not overqualified people out
done. The main thing is to start managing yourthere who would leap at the chance to work.
business. The reason this looks daunting is thatStop with the excuses of they will leave me
owners try to do too much too fast. You needwhen the economy turns around. Historically this is
to approach this in one percent increments andnot the case. They remember who helped them
there are plenty of opportunities.during a very trying time, and they will likely stay.
Examples of this that I have seen accomplishedEmployees who see their fellow employees
are:abused by an employer will remember that also.
1. Workers Compensation insurance. The rules6. Rent. Have you discussed reducing the rent for
changed this year in Ohio such that currentyou store, office, or warehouse? Guess how
Workers Compensation reductions are only 51%much that empty storefront is bringing in for
of your total. However, a PEO can give you up torevenue. Nothing. Some rent money is better than
a 65% reduction and usually will be able tono rent money. Ask the question.
compete with your payroll company.7. Loans. Got a business loan? Have you talked to
2. Insurance. Your current company will not givethe bank about refinancing? No? What have you
you the discounts that are being currently offeredgot you to lose except some increased cash flow.
to grow new business. A long time relationshipThe SBA has even allowed refinancing of their
with your insurance professional is very valuable.loans at a lower interest rate for the first time
However, an independent insurance agent hassince inception of the program. You have to go to
access to multiple vendors and can offeryour bank and ask for this refinancing. If they
alternatives to your current insurance. Have therefuse (and not all banks are doing this) go to
new agent review your current insurance. I haveanother bank. There are plenty of banks who
seen vendors not have their buildings covered,want your small business business.
have buildings listed incorrectly, have coverage8. Yourself. Take a long look in the mirror and be
taken away in the back of the policy, and justhonest with yourself. Are you really trying to go
have certificates and not real insurance.forward in your business or are you yearning for
3. Payroll. Who does this for you? Most payrollthe good old days? Pay cuts are hard to swallow
companies do a great job. However, not allfor yourself and your employees. Stopping
companies are equal, and some companies usematching to your retirement plan is also tough.
the payroll to front their real business interests. ILetting employees go (except for the problems)
have seen payroll companies who also startis tough. Get tough. But, and it is a very big but,
offering retirement plans (401k) at enormousget tough with yourself first.
fees with next to no service. I have also seenAll of these steps will only reduce your required
accountants who will offer this service but willkey in the door outlays by 1 to 1.5 percent, but
"bundle" the actual costs for this so you cannottogether it will add up to 10 to 15 percent. This
tell what it is actually costing you.should be enough to allow you to get by for the
4. Professionals. What exactly is your CPA,next year. Consumer spending is the only way
lawyer, banker, bookkeeper, or insurance agentwe are going to recover in this economy, and it
actually providing you? Are they a part of yourwill take a while for that confidence to recover.
business or just someone you talk to semiannuallyI have had this exact same conversation with
or when they want to get paid? Do they usemany business owners, most of whom are still in
your printing, garage, or concierge business? Dobusiness.
they actively promote your business to the rest