Tips for Small Business Survival in Uncertain Economic Conditions

May 25, 2012 | PrimePay Business and Experts Blog | 0 Comments

small business economic survivalOur last article for Small Business Week 2012 discusses one area small employers can focus on  to help ease the difficulties of surviving in uncertain economic times... improving the efficiency of their business. Trying to grow a business during economic uncertainty may just be the biggest challenge for a small business owner. Uncertainty is a complicated challenge to deal with because there are so many unknowns. This is one thing that causes businesses to stop growing and it often also causes businesses to take actions to improve the efficiency of their current operations.

One of the primary downfalls that uncertainty causes is a lack of confidence. Business owners do not know which way to turn because of this. It is very normal for consumers to feel a lack of confidence in times like this too, and this often impacts small businesses. Another problem with uncertainty is not knowing what direction to take. When a business owner feels unstable, it often causes the business owner to hesitate and be more cautious than usual when making decisions and planning for the future. The problem with this is that it can be difficult to make money and to grow a business when an owner is not taking any risks.

Business owners that lack confidence are often stuck in the same place for a very long time. Their businesses do not grow and nothing changes. This makes it hard for small businesses to remain competitive and keep up with the current trends with their competitors.

Outsourcing Helps Small Businesses Improve Efficiency During Economic Uncertainty
During uncertain economic conditions there are steps a business owner can take. One of these is outsourcing. This is often done as a way to improve the efficiency of the company. If a small business can improve its efficiency, it will improve its earnings and potential.

The convenience of outsourcing administrative burdens is undeniable. Just like with any task… the more you do it, the more second nature it becomes. The less often you do it, the more time it takes you to remember the steps you need to take to complete the task at hand.

So let’s do the math. As a business owner, does it make more sense for you to spend hours on employee compliance issues, completing your payroll tax filing documents and being the IT support person? Or instead, investing your time and effort in increasing revenue?

Reduce Risks, Avoid Penalties & Eliminate Headaches
Why do so many small employers outsource their HR, payroll, IT and other business processes?

  1. Reduce Risks: Small businesses have limited resources and most can’t afford to pay a full-time employee to handle a particular function for their company like HR. HR is not something to dabble in. Keeping your business human resource compliant requires expertise.
  2. Avoid Penalties: Certain business requirements, like paying your payroll taxes, come with severe penalties if your payroll taxes are late or inaccurate. The tax laws are constantly changing. Not staying on top of the current regulations could put your company at risk for a $845 payroll tax penalty.
  3. Eliminate Headaches: Your expertise is running your business… not spending hours trying to network your computers and play IT support person. Just because you can do it doesn’t mean it is an efficient use of your time if it takes you away from running a profitable business.

Download the eBook... 5 Small Business Challenges And How to Overcome Them... to learn how outsourcing certain business processes can help improve the efficiency of your company.

Download How to Overcome 5 Small Busines

Did you miss Days 1-4 of our Small Business Week 2012 blog series? Check them out here.

Day 1: 3 Maybe Not So Obvious Ways to Improve Your Small Biz’s Cash Flow
Day 2: Is Your Small Biz Confused by the Maze of Government Compliance?
Day 3: Dynamic Benefits Package is a Key in Recruiting Top Talent

Day 4: Strategies for Balancing Your Small Business Financial Success

 

Tags: small business, economic outlook