WhidbeyTomas
This is a common complaint of employers. My response is that they need to attract a partner. They need new ideas to change their business model. The question is rigged. They are framing their situation to generate a specific answer. The answer the person asking would like to hear is that there is nothing they can do except cut back on wages and benefits.
I say, if you can't win at the game you are playing, change the game. A business that can't produce enough revenue to pay employees and fund benefits is applying a poor business model or managing their business poorly. What do you think?
8 Answers
Colleen
You said: "A business that can't produce enough revenue to pay employees and fund benefits is applying a poor business model or managing their business poorly. What do you think?"
I do not agree completely. Yes, the owner can be accountable if he/she is not addressing the situation and investigating ideas to help the business. Location of said business and the fact that areas can over develop or decline due to a harsh economy can harm a business. The product the business produces may no longer draw interest in a poor economy. That said, the owner has to rethink the demand for this product. Has the business owner ever consulted a marketing expert? Has the business owner investigated cheaper suppliers for the material needed for the product? Does the finished product require shipping or is it sold at the same place it's made? How high of a paycheck is the owner getting? Just some things to think about. What kind of competition is there for said business?
| 10 years ago. Rating: 7 | |
Ducky
My suggestion would be to join your local Chamber of Commerce, talk with other business people, find a mentor, almost anything except ask here, at akaQA. How many business people do you suppose, have answered your question so far? Wouldn't you need to hear from those who have actually owned a business, been involved in B to B sales, been in management or supervisory positions or have a business oriented education?
| 10 years ago. Rating: 6 | |
sunnyB
Well speaking as someone who had a business for 40 years, employed about 8 people at one time, and finished up two years ago with nothing,after doing everything myself for the last 4 years, I would say get out of it , get yourself a job that pays a reasonable wage, and also a pension at the end of it. Unless you are making a good liveing in business it's just not worth it.
| 10 years ago. Rating: 5 | |
Clonge
What type of business?
| 10 years ago. Rating: 5 | |
The IRS (which governs the tax-exempt status) allow a nonprofit to pay reasonable salaries to officers, employees, or agents for services rendered to further the nonprofit corporation's tax-exempt purposes.
For example, if they sell hamburgers and they're getting beat by McDonalds even while selling for less, they should consider pizza to go, gourmet coffee, or adding entertainment. If they look at the people buying at McDonalds, they could consider what those people need and want that McDonald's doesn't sell.
Clonge, understand that my question is a hypothetical one. It isn't one that I have, it is one many small employers claim. The ten employee scenario is given only to illustrate the common small business claim. Non-profits typically underpay, and mine is arguably no exception. In fact, I've worked for the non-profit for five years without pay. That is serious underpay.
My non-profit uses volunteers and interns to get work done. This sounds like slavery, but we teach the interns far more than they produce. In four years, interns have not developed a single course, though we've helped dozens get good paying jobs as a result of their participation.
I find that some well-funded non-profits (we don't fall in that category) take advantage of the industry patter for underpay, despite good funding.
zorro
Sounds like you could provide help to those you had contact with before. AT&T has personnel needs for what you can offer. They always search for ways to improve staff competenticies. Structure yourself a little different , how you gain business. The New York offices would be the best start. Employee development is what they look for , from my past experience.
| 10 years ago. Rating: 4 | |
Bob/PKB
Time to do a real overhaul on expenses. Cut where you can. Automate wherever possible. Look into better health plan options. Cut back on bonuses, overtime, and other "non-essential" employee expenses. You may need to move your operation to a less costly site.
If you were speaking of your own situation, you would probably already be talking with someone who could help you cut costs and increase profit without affecting your employees' wages or benefits. Not knowing what or where you business is located doesn't help our responses to be more appropriate, either.
Where there is a will, there is a way.
| 10 years ago. Rating: 3 | |
mycatsmom
robertgrist
I don’t follow trends. Many are facing problems like you have described. Profits are down and cost are up….so it is time to break down barriers to your success and go for the goals of your business. What do you want from your business. Identify your goal and go for it. If your personal goal is retirement go for that. If it is increasing your income to more than make up for the rising cost, go for that. Your happiness is what really matters. Enjoy what you are doing and be happy or choose to be happy. The choice is yours.
| 10 years ago. Rating: 2 | |
Just reread, you only have 10 employees. That exempts you from having to follow the mandates of Obamacare. Because of this, Pres. Obama does not care about your company. Sorry.