Small businesses are the lifeblood of the American economy. According to recent statistics from the U.S. Small Business Administration, they provide over 50% of the country’s private workforce, and also create the majority of new net jobs. As Dr. Chad Moutray, the Chief Economist for the Office of Advocacy has pointed out, “Main Street provides the jobs and spurs our economic growth. American entrepreneurs are creative and productive, and these numbers prove it.”
If you’re a small business, you want to be a part of this productivity drive. However, as the old saying goes, it takes money to make money. How can you make your small business an even stronger economic force? Here are three things to keep in mind.
1. Manage Your Money Better
It’s easy to slack off when it comes to getting your finances in line. It’s worth noting, though, that according to Statistic Brain, “no knowledge of financing” remains one of the main reasons that small businesses end up failing within the first four years of operation. Entrepreneurs who can successfully and accurately identify cash flow, expenses, and overhead costs are going to have an easier time securing loans, finding small problems before they snowball, and more.
2. Better, Automated Payroll Services
Many companies still do their payroll manually. However, this can actually become a huge expense for your company, even if there is a cost to upgrading to better payroll software. Did you know that, according to the IRS, about 40% of small businesses end up paying almost $900 a year in tax penalties relating to bookkeeping? Studies have also shown that when payroll is handled in-house instead of outsourced, payroll processing procedures end up costing 18% more.
3. You’re Not the First to Come Along
Do you own a pizza restaurant and wonder how you could improve operations? Well, consider this: there are over 60,000 pizzerias in the United States. Since most of these places are localized, they don’t represent competition — but they can represent an opportunity to learn. Contact experienced entrepreneurs working in the same field as you, and listen to what they have to say about avoiding costly mistakes, and approaches that really work.
Could better payroll processing procedures improve your business? Let us know in the comments.