As a small business owner, it can be complicated sorting through and organize business expenses. The nature of small businesses, with the majority having limited budgets, makes it very necessary to utilize professional payroll solutions that boost efficiency and profitability.
Ergonomics, the economics of efficiency and convenience, is especially vital for the survival of every small business. The dangers of operating a small business are bankruptcy and running at a loss, making it necessary to prioritize expenses and payroll. It is important to examine your small business’s expenses to spot and eliminate the excesses and irrelevancies.
Small businesses must realize the difference between wants and needs to prevent accumulating avoidable expenses. It is paramount to utilize professional well managed payroll solutions in order to cut down on irrelevancies or redundant costs. Small businesses need to extend compliances with regulatory bodies, as failure to do so will result in damaging sanctions.
To maximize and take full advantage of your business’s limited budget you must be able to prioritize your expenses eliminate redundancies and abandon outdated practices. By cutting down on certain operational costs your business is able to channel its resources toward more productive purposes. Small business enterprises that fail are usually guilty of taking on too many irrelevant or avoidable costs, putting significant strain on an already limited budget.
Applying Maslow’s Hierarchy of Needs to A Small Business
Small businesses looking to properly prioritize operations and expenses can apply a well acclaimed psychological concept, ‘Maslow’s hierarchy of needs‘, to their operations. This is a pyramid of business practices and expenses that must be catered to a smoothly runned and profitable enterprise.
So, what exactly is Maslow’s hierarchy of needs?
It is a psychological concept, a theory regarding human nature. It shows human needs on a scale of reduced importance and value. Maslow’s hierarchy of needs, in descending order, is as follows:
- Physiological Needs
Vital human needs necessary for survival like water, food, shelter, air, sleep, and clothing. A failure to meet these needs results in poor health and eventually death.
- Safety and Security Needs
Needs that aid human well-being and quality of life. Physical security, finances, good health all fall under this category.
- Social Belonging Needs
Social bonds, relationships, and networking is necessary to a functional life. Friends, acquaintances, and family fall in this category.
- Esteem Needs
A person’s social standing, ego, and status. Needs in this category are essential in boosting a person’s esteem and include activities like a job or career.
- Self-actualization Needs
Things needed to help a person realize their full potential.
Although Maslow’s theory is focused on the human nature it is a concept that resonates in the context of business management. The principles of the theory can be adopted in the sense that a small business is in actuality a corporate person.
A small business has needs, expenses, and processes that should definitely be prioritized based on how essential and vital they are too efficient business operation.
To properly manage a small business payroll and operational needs, here is a reimagining of Maslow’s hierarchy of needs:
- Physiological Needs: Fundamental Business Needs and Expenses
These are vital business needs that cut to the very existence of the business. They are key to the survival of your brand. These include things like securing your business’s office space, domain name registration, manufacturing costs, and other overhead costs. It is important to grant such expenses the highest priority as defaulting on these can endanger your business’s survival.
Industry tools, depending on your industry, are also fundamental needs. Vital business tasks like accounting, bookkeeping, and payroll fall under a company’s physiological needs. No business, much less a small business, can survive without properly accounting for these processes. Business owners should scout for small business payroll solutions, like Business Cents, capable of near automation of such critical and essential tasks.
Employ efficient business practices to reduce slow responses and lag. An example of a tool that meets fundamental business needs is QuickBooks, an online business solution that records transactions, categorizes expenses, stores customer data, and provides instant accessibility. This software keeps your business mobile, efficient, and provides high accuracy. The expenses saved on paper storage and the time that would have been spent on manual filing, all add up to a more efficient and profitable business.
- Safety and Security Needs: Regulatory and Statutory Compliance
Safety of business encompasses protection of business assets, regulatory compliances, and meeting taxation requirements. Small businesses are not immune from some of the challenges larger corporations face, like data breaches, natural disasters, sabotage, and workplace mishaps. It is important to protect the business from the fallout of such occurrences.
Insurance premiums and tax deductions are expenses that cannot be defaulted upon. Missing these statutory or regulatory requirements can lead to more than just logistical issues. Sanctions from regulatory bodies due to noncompliance to standards and government sanctions due to unwitting tax evasion can have a devastating effect on your business.
To avoid exposing your business to liability in the absence of insurance and government sanctions and fines, it is best to employ the services of a high-quality payroll service. Businesses that engage the services of a premium service like Business Cents’ bookkeeping service, or QuickBooks Assisted Payroll, eliminate the chances of regulatory or statutory defaulting. With a professional payroll solution, your business is able to claim tax benefits and breaks, saving you some extra cost, as well as leaving your business well shielded from the crushing hammer of the law.
- Social Belonging: Networking, Outsourcing, and Freelancing
The task of managing a small business is not as simple as it may appear. A business has many moving parts all of which must be well oiled and serviced to prevent a breakdown. In many small businesses the owner takes on the role of an HR manager, accounts payable, accounts receivable, marketer, and salesperson. This can be overwhelming and eventually leads to inefficiency and errors.
Small businesses should consider outsourcing some of their operational processes, especially specialized tasks like bookkeeping, accounting, and payroll management. Outsourcing avoids the added overhead of creating permanent positions and also ensures your business gets high-quality services. Outsourcing saves businesses considerable expenses in the long run. Business Cents offers a great B2B platform for the accounting and bookkeeping needs of businesses looking to boost efficiency.
Engaging cloud-based services will reduce your business’s overhead. For instance, QuickBooks Online provides a wide range of functions for small businesses looking to automate and boost their operations. Business Cents provides training on effectively leveraging cloud-based computing systems to boost workplace productivity and profitability.
Employing freelancers has also become a viable cost-saving strategy for small business owners. Experts, who provide their services on an “as needed” basis, represent a value proposition to small businesses. Rather than incur a huge financial outlay creating a permanent post, small businesses can employ the services of freelancers only when such a specialized task comes up.
Small businesses are restricted by their operational costs and budgets, making it hard to afford important expert positions. Most small businesses have no Chief Financial Officer and the business owner often times plays that role himself. Without the valuable insights of such a professional, certain business endeavors may become obsolete or unattainable. However, with services like Business Cents’, Contract CFO services, your business can hire an experienced professional for a specified period of time.
- Esteem: Publicity and Market Outreach
Small businesses still have to engage in marketing, and publicity campaigns, though on a smaller scale. The limited budgets of a small business mean your marketing strategy must be short and quick to the point. You do not have the luxury of a complex wide-reaching advertising campaign.
First, you must identify who your potential clients are. Market research is key to identifying the customer base you wish to reach and trends are fundamental to deciding on what marketing strategy to adopt. Discover what needs you as a business are capable of meeting. To run a profitable business, you must have a viable market for your product. No matter how niche your business is, you must first identify and confirm there are clients out there. Perform intensive competitor research for insights and proper strategic planning.
You must position your business as a premium high-quality option, otherwise, you are stuck in the perpetuity of barely breaking even. Potential clients have to see your services as a high-value proposition, indispensable, and peerless. Usually, with small businesses, word of mouth is the biggest advertisement platform making it essential to provide high-quality service.
The path to establishing your business as a player in your industry starts with proper internal fine-tuning. When your business runs smoothly and efficiently, you are able to project your professionalism and value onto your potential clientele.
- Self-Actualization: Hitting Peak Profitability. Maximizing Potential
This is the culmination of previous steps, the ultimate goal of all businesses, small or large. Peak profitability. This is only achieved by businesses that have been able to successfully exploit the market they find themselves. And before you can reach the peak of profitability you must have reached peak productivity.
To achieve peak productivity, a small business owner must successfully manage your business’s operation. Internal controls that ensure workplace efficiency and productivity, as well as minimizing mismanagement and fraud must be in place. Your business must also be well placed to meet the needs of its customer base.
Convenience and mobility are two hallmarks every small business must embrace, not only to ease day to day operations but to also attract customers. In this technology-driven world, the modern customer places a premium on quick and efficient service. GoPayment, a mobile payment solution allows clients to make quick and secured transactions without the hassles of conventional payment methods. This is an ‘on-the-go’ payment option that is sure to attract and keep customers.
Vendor and supplier relationship must also be well primed and a mutually beneficial relationship must exist between both sides. QuickBooks helps your business manage expenses and receipts for transactions. Invoices and accounts payable are also easily automated with this bookkeeping solution. Proper bookkeeping allows you make prompt financial planning, prepare accurate compliance reports, manage payroll efficiently, and make correct tax payments.
By ensuring your small business supersedes modern, industry standards, you are positioning it for global exposure and consistent profits. By taking advantage of payroll solutions available to small businesses today, you are free from the burden of technical operations and able to focus on coming up with innovative ideas.
Innovative ideas paired with operational efficiency will place your business far ahead of its competition. Prioritize your business expenses today by eliminating redundancies, irrelevant costs, and engage the services of learned professionals by leveraging the services of Business Cents.
Maslow’s hierarchy in the context of small businesses can help your business reposition itself in your chosen market. Reduce the expenses incurred on each stage of your company’s development. Small businesses are prone to collapse because of the inefficiency that pervades the workplace.
Rather than vesting a single person, usually the small business owner, with the responsibilities of business operations and technicalities, small businesses should seek a simplified payroll and business solution. Business Cents provides much needed operational support to small businesses struggling to effectively manage the more technical aspects.
Business Cents provides the full range of business, and payroll solutions, wa, small businesses need to expand their business. Services include:
- Chief Financial Officer Services
- Data Analysis
- GoPayment Integration
- Software Setup, Maintenance, and Training
- Taxation Consultancy
- QuickBooks Installation and Training
Business Cents is the industry leader in providing premium payroll and expense management systems. Boost your business’s productivity as well as profitability with our professional payroll solutions and consultancy services.
We are committed to helping small businesses operate efficiently, without hindrances or operational bottlenecks. Our industry-leading business solutions are primed to take your business to the next level and eventually maximizing the potential of your enterprise.