Tuesday, November 13, 2018

Choosing Your Business Structure When You’re Self-Employed

The idea of starting a business can be exciting, to say the least. However, incorporating the business can be a daunting task. Choosing a business structure that’s perfect for your business is a headache for most small business owners.

Despite the headaches involved, it is vital that you select the right business structure for legal reasons. Your business structure will depend on a number of factors including business deductions, businesses you intend to work with and the growth of the business. Without any further ado, take a look at the different types of business structures.

Sole Proprietorship

This type of business structure hosts the largest percentage of business owners. The structure defines an unincorporated business where the owner of the business pays taxes using their personal Social Security number. However, you can get a Taxpayer Identification Number or an Employer Identification Number.

The two eliminate the use of your Social Security Number to pay taxes. If you are unsure of which form to fill, you can use this list of tax schedules.

In addition, as a sole proprietor, the business will operate under your legal name. However, you can opt for a preferred name which identifies your business by applying for one with the Doing Business As. By doing this, the local government and the state is able to identify the name that the business operates under.

Keep in mind that various states have varying DBA registration procedures.

One glaring disadvantage in this arrangement is the lack of legal protection of your assets. This means that the law doesn’t recognize any difference between your business assets and you. Should you end up bankrupt or sued for that matter, then your personal assets could end up in the debtor’s hands.

Limited Liability Company (LLC)

In this type of structure, assets owned by the business partners enjoy legal protection. This means that they cannot be held liable for any liabilities or debts incurred by the business.

Keep in mind mixing personal funds with business activities results in “piercing the corporate well.” In other words, it means you have to operate the business as a detached entity to make sure that you maintain the LLC status.

As a business owner, this is the next step after a sole proprietorship.

S Corporation

Also known as S-Corp, the IRS categorizes this type of business structure as a subchapter S. The latter defines S-Corps as a singular entity separate from its owners.

As such, it means you will enjoy legal protection as is the case in LLCs, which is the separation of personal assets from the business. This also means the profits from your business will be taxed as a separate entity.

The catch is the IRS requires all shareholders working for the company pay themselves industry rate salaries. In addition, shareholders must receive market value dividends.

Failure to that will attract the IRS’s attention who will group any extra earnings from the business as wages. This means the taxes will apply at the shareholder level instead of the corporate level.

C-Corp or C Corporation

This arrangement is quite appealing to the knowledgeable and independent professionals. In C-Corps, owners can be shareholders as well. In that regard, both the owners and the businesses form separate entities.

For cases where you are the owner of the C-Corp, you are termed as the majority shareholder. Since the law recognizes the corporation as a separate entity, then the IRS also views it as a taxpayer. This means taxes will apply at corporate level and also taxed when the shareholders receive their dividends.

The C-Corp structure is the most complex of all business structures available, but it is also an appeal to the savvy professionals. It also comes with various advantages including easy to write off expenses, reduced audit risks, and separation of professional and personal assets.


At this point, you know the various types of business structures that exist. You also understand each business structure and which is perfect for you. Therefore, you can use this knowledge to formulate a plan for your business moving forward.

Besides that, if you find this whole structure thing is quite overwhelming, you can seek legal and business advice from industry experts.

Theresa Todman, Managing Partner/CEO of B&M Financial Management Services, LLC . Theresa works with small business owners and entrepreneurs to assist them with financial management and creating organized systems and procedures. She specializes in bookkeeping, accounting, QuickBooks solutions, small business tax issues and consulting.

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Monday, November 12, 2018

5 Time-Saving Invoicing Tips for Self-Employed

Cash flow management can be a major challenge for self-employed consultants. If you work with multiple customers, you may struggle to balance the moving parts of getting paid.

In addition to tracking hours, you’re responsible for generating invoices, sending them to customers, corresponding with accounts payables (A/P) teams, and making sure your payments process without hiccups.

These logistics can be overwhelming for consultants without a finance background or accounting firm to help manage operations.

Once you identify what these steps need to be, you can automate your operations to be less of a cost-sink. Automation can help you avoid costly cash flow management challenges in your business.

Don’t build your invoicing process from scratch. Here are 5 tips for self-employed consultants looking to maximize cash flow and achieve stability in their businesses:

Invoicing Tip 1: Use Invoicing Software Sooner Rather than Later

Invoicing software can help ensure that your invoices line up with your books, that you’re tracking payments with accuracy, and that you have a real-time cash picture to manage your overall finances.

This capability will help you grow your business, run with more stability, and control how you get paid.

Read this guide on invoicing to better understand the role that software plays in accounting workflows—and how a platform like QuickBooks may help you build a template for invoice automation.

Invoicing Tip 2: Standardize Your Invoice Terms

One of the biggest struggles that consultants navigate is predictability over income. It’s never guaranteed when your customers are going to pay you. When you do know, there’s always a chance your customer forgets to pay—leaving you wondering if you can pay your bills.

One way to avoid this uncertainty is to use a schedule in your accounts receivables (A/R) process. Tell your customers your invoice terms so that you’re not left wondering.

Invoicing Tip 3: Make It Easy for Customers to Pay Your Invoices

Being self-employed, you do not have the backing of a larger company to guide your customers through the administrative process of making a payment.

One way to avoid these challenges altogether is to use technology to your advantage. Accounting software like QuickBooks gives small business owners—even teams as small as one—the technical capabilities that bigger organizations have on-hand to process electronic payments.

Credit cards, electronic payments, online checks, ACH, and direct wire transfers are some of the ways that you can accept funds from your customers. You can read more about online payment options in this article, here.

Invoicing Tip 4: Define Your Late Payment Policy

Bigger companies often have the resources to enforce their payment terms. These include legal, collections agencies, and the ability to charge interest when their customers fail to make payments on time.

In contrast, freelancers and independent contractors often feel powerless when enforcing their contracts. But you have protective measures too. Businesses of all sizes have ways to enforce penalties on payments that lapse.

Here some invoicing resources to help you build a late payment policy of your own:

  • A Guide to Pursuing a Collections Agency – Learn when it’s time to send your customer to a collections partner, and weigh the pros/cons of doing so. This article also emphasizes ways to avoid ending up in collections, altogether.
  • A Guide to Navigating Late Invoice Payments – Figure out what steps you should take to avoid delays in payments. Learn, at a high level, what you should communicate with your customer, ahead of time, to ensure smoother processes.
  • A Guide to ACH Payments – Learn how to use ACH, one technique for processing one-time and recurring payments, can help you avoid payment delays. If you use QuickBooks for accounting, you get access to ACH payment options for free.

Invoicing Tip 5: Enable Mobile Payments

This option is ideal, especially, for consultants that process payments over the phone or visit customers on-site. A face-to-face meeting is a great time to work through administrative check-ins, especially if you need to get multiple logistical items squared away.

Use your phone to accept credit card payments, on the spot. Don’t push your customers or be aggressive. Rather, mention that you offer mobile payment and ask if it would be convenient to accept payment immediately.

If you’re a QuickBooks customer, you can enable mobile payments using your accounting software. There are ways to securely store your customer’s information, so you can make the process of collecting payment easier on everyone.

Final Thoughts

Process and automate as much as possible, so you can focus on the parts of your business that make you billable. Your accounting software will be your hub, so make sure that you build up capabilities that streamline how you get paid.

Hopefully, these invoicing tips will help you collect the cash you deserve, hiccup-free.

Source: https://wordpress.intuit.com

Theresa Todman, Managing Partner/CEO of B&M Financial Management Services, LLC . Theresa works with small business owners and entrepreneurs to assist them with financial management and creating organized systems and procedures. She specializes in bookkeeping, accounting, QuickBooks solutions, small business tax issues and consulting.

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Tuesday, November 6, 2018

What is Cloud Financial Management?

Today’s growing businesses are facing unprecedented challenges and opportunities. On the positive side, they have the opportunity to capitalize on global markets and resources by virtue of today’s telecommunications networks, electronic commerce outlets and lower international trade restrictions. As a result, companies of all sizes are leveraging lower cost materials and skills abroad, and selling to new markets worldwide. On the other hand, companies must also contend with escalating competition and more complex operating requirements.

At the same time, many businesses are increasingly reliant on a dispersed workforce of remote or mobile employees. They must also communicate more effectively with an expanding network of global suppliers, channel partners and customers. In order to manage these escalating challenges and fully capitalize upon today’s expanding market opportunities, an increasing number of growing businesses are recognizing that they must adopt more sophisticated financial management systems to properly support their businesses.

Some smaller companies have used QuickBooks to track finances, but now need a more robust financial management system to handle their increasingly complicated transactions.

Why? They need to better forecast and track their revenue flows, keep a closer eye on their cost structures and adhere to tighter accounting and regulatory compliance standards. In the past, when companies graduated from QuickBooks, they would have to make significant investments in costly and complex on-premise, financial management software to meet their needs. These premise-based applications often required long deployment cycles, added hardware to support the applications, and dedicated in-house information technology staff time to keep the software up and running.

Trends Leading to the Rise of Cloud Financial Management

  • More and more companies of all sizes are adopting a new generation of cloud-based, Software-as-a-Service (SaaS) solutions to satisfy business requirements. This trend began with the adoption of customer relationship management, payroll and conferencing solutions from SaaS vendors such as Salesforce.com, ADP and Webex/Cisco. The success of these SaaS deployments has led to companies adopting comparable SaaS solutions to satisfy their financial management software needs as well.
  • Companies of all sizes are facing a combination of market trends which are forcing them to more effectively manage their businesses. These trends include globalization, competition, worker dispersion, and a growing acceptance of web-based, on-demand services. Globalization has created new market opportunities, but has also opened the door to new market competition. It has given companies access to new markets and cheaper offshore resources. It has lowered the barriers to entry for a growing assortment of competitors who are increasingly competing on price rather than product features.
  • More and more SaaS offerings have been specifically designed to scale to meet the needs of both small and large enterprises. SaaS appeals to companies that have been unable to acquire the sophisticated applications of the past, those who have grown tired of the complexities and costs of premise-based applications, and others who have outgrown the capabilities of their existing applications.
  • While companies of all sizes must employ increasingly sophisticated financial management to control their corporate operations, small and mid-sized companies are particularly challenged to contend with these issues. Many of these companies are either young or too small to be able to justify the cost and complexities of traditional mid-market on-premise applications. Many have initially relied on Intuit’s QuickBooks to meet their revenue and expense tracking needs but their business requirements have evolved.
  • As products and services become more complex, so do revenue management and billing requirements. Companies today also need to comply with increasingly complex revenue recognition guidelines. Most traditional mid-market accounting systems are not designed to handle this increased complexity and many organizations are forced to use manual spreadsheets to manage their revenue recognition and billing processes. By leveraging a financial management system that enables you to automate these processes, companies benefit significantly in higher finance productivity, faster close processes, and simplified compliance.
  • As companies grow, they often need to track revenues, expenses and profitability across multiple business units. Rather than create multiple instances of financial information for each entity which must be consolidated manually into a Microsoft Excel spreadsheet, many companies seek an integrated, financial view of a company’s end-to-end operations.

Today’s new breed of SaaS offerings targeting cloud financial management permit users to pay on a subscription basis – relieving them of the added hardware costs, as well as deployment and management hassles. This allows users to focus on leveraging the software functionality rather than worrying about the application availability. Unlike on-premise applications which might be hosted by a software vendor, today’s SaaS solutions have been built to fully leverage the web and permit end-users to utilize the online financial management applications in the cloud anytime … from anywhere. For businesses positioning to take the next step in scaling for growth, cloud financial management presents great opportunities.

Source: https://smallbiztrends.com
Image Credit: Shutterstock

Theresa Todman, Managing Partner/CEO of B&M Financial Management Services, LLC . Theresa works with small business owners and entrepreneurs to assist them with financial management and creating organized systems and procedures. She specializes in bookkeeping, accounting, QuickBooks solutions, small business tax issues and consulting.

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Monday, November 5, 2018

How Cloud Based Machine Learning Can Transform Your Automotive Business

The cars we drive today have become as digital as they are mechanical. The integration of this digital technology makes it possible to collect large volumes of data from the many different monitoring and connected devices within the vehicle.

By 2020 IHS Automotive is predicting 152 million connected cars will be on the road generating 30 terabytes of data every single day. Small businesses in the automotive industry can use this information to deliver better services for the repair and maintenance of their customer’s vehicles.

With cloud-based machine learning (ML) and artificial intelligence (AI), auto parts stores and repair shops, as well as other related automotive businesses, have become more efficient than ever. Everything from their backend to customer-facing operations is being optimized to provide the best service possible.

This is driving the market for automotive AI and ML hardware, software, and services segments to grow to $14 billion by 2025, according to Tractica. In the Original Equipment Manufacturers (OEMs) segment, McKinsey is projecting it will grow to $215 billion annually by the same forecast period.

So how can small businesses start using cloud-based ML and AI solutions now and be future ready as the technologies become more integrated into the automotive industry, consumer devices and society as a whole?

How Machine Learning Can Transform Your Automotive Business

Here are five ways they can be deployed.

Predictive Maintenance

The purpose of predictive maintenance systems is to predict failures and even take corrective actions to fix problems  — BEFORE they happen! This can include everything from preparing the necessary safeguards for even a planned failure to replacing a potentially defective part ahead of schedule.

This higher predictability means the customer will know when they need to bring the vehicle in for repairs. They will not be caught off guard and they can make plans ahead of time so they won’t be inconvenienced by missing work or by a break down in the middle of the highway with additional costs.

Predictive maintenance will completely avoid or minimize downtimes as well as greatly improve customer service, save costs, and possibly save the lives of your customers and the public on the roads.

Condition Monitoring

As a repair shop, you can now start offering condition monitoring processes to make sure your customers’ vehicles are in tip-top shape. This is an added value service which will give drivers peace of mind knowing their car is actually being monitored regularly.

Whether with existing sensors or the installation of new oil pressure, oil temperature, oil leakage, thermostat, air pressure or other types of sensors, some very important functions can be monitored remotely to warn your customers right away of trouble.

Customer Communication and Engagement

All of these interactions will naturally increase customer communication and engagement, and with cloud-based ML and AI solutions, you can stay in touch with them seamlessly on their smartphones, tablets, PCs and even in their cars.

Small businesses in the automotive industry can now provide highly personalized experiences today’s customers demand. With machine learning, businesses will be able to deliver a personalized customer experience at scale without the traditional cost of call centers or other labor-intensive operations.

Users can be engaged with chatbots and AI systems by sending queries, making and verifying appointments, reminding them of scheduled maintenance or repair, conducting surveys and much more.

Accurate Repair Estimates

Getting a uniform estimate from auto repair shops is a challenge. With ML, it is possible to develop a solution which can identify the damaged parts, evaluate the damage, calculate what kind of repair is needed and estimate the cost. Estimates can be produced quickly and accurately for more professional appraisals.

If a shop has this technology in place, customers will know the damage is being evaluated objectively. This feature alone is enough to drive more customers to your doors and increase sales.

Sales and Marketing

If you are running an auto parts store, you can use machine learning models to predict the products your customers want most and create personalized marketing campaigns. With ML, you can use data such as recent purchases, social media presence, and other customer activity with personal details to gain insights into customer preferences and buying behavior.

When it comes to sales, you can determine the right price to charge your customers at the right time with dynamic and optimized pricing. Add a cloud-based CRM solution to the mix, and your marketing efforts can be optimized by improving customer and employee communications across all channels with real-time availability.

Why Machine Learning?

Machine learning gives you access to the data in your company and industry. With this data, the technology is able to come up with insights to improve the way you carry out almost all of the different daily operations of your company.

If properly implemented, a cloud-based ML solution will provide the transparency you need to see and understand the complexities of your industry so you can thrive.

Source: https://smallbiztrends.com
Image Credit: Shutterstock

Theresa Todman, CEO/Managing Partner of B&M Financial Management Services, LLC . Theresa works with small business owners and entrepreneurs to assist them with financial management and creating organized systems and procedures. She specializes in bookkeeping, accounting, QuickBooks solutions, small business tax issues and consulting.

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Thursday, October 25, 2018

What is Gym Management Software? 5 FAQs Answered

If you run a fitness-related business, and you're just getting acquainted with the world of studio software options available to you, this is a great introduction. There are lots of SaaS fitness software solutions out there, each geared toward businesses of different types and sizes, and they all offer unique selling points.

What is gym management software?
Gym scheduling software is also sometimes referred to as fitness software, studio software, scheduling software or membership software. Such software solutions help businesses that offer memberships and classes keep track of their members, their employees and their schedules. While there is a wide range of scheduling solutions available, most SMB-focused gym scheduling software includes an employee-facing portal as well as client-facing features.

How is gym software used?
Gym scheduling software can be used to assign classes or training sessions to specific employees, create membership limits on classes, onboard new members, track employee hours, pull reports, sell gym merchandise and memberships, keep track of members (through lightweight CRM-style features), track and process payments, and send emails.

Fitness trainers often use the same software to find out their upcoming schedules, see how many members are signed up for their services, and track members' progress. Meanwhile, customers use the software to book classes or services online (either through a dedicated app or on the company website), make payments, and in some cases access their individualized fitness information.

Who uses gym management software?
Gym scheduling software isn't just for people who run traditional gyms. Dance studios, yoga studios, gymnastics training centers, spin studios, spas, salons and even independent personal trainers use scheduling software. Any businesses that focuses on providing classes or services to clients may use fitness software. However, for schools, camps or event venues that have large spaces with lots of reservable space, traditional scheduling software is best. The focus of gym scheduling software is membership management, trainer and class scheduling, and milestone tracking, not space utilization or resource management.

What types of fitness scheduling software are out there?
Because there are so many types of businesses that use appointment scheduling software, different companies have developed to serve niche groups. The giant in the industry is MindBody, which operates much like other large SaaS companies, offering niche features for different types of businesses within a large customizable product. There are also industry-specific software products, which tend to be less expensive and built-with specific users in mind. Examples of niche gym software include WOD Hopper, which was built for CrossFit gyms, and Jackrabbit Class, which is ideal for dance and gymnastics studios.

How much does gym scheduling software cost?
Gym scheduling software, like other SaaS solutions, is available at a wide variety of price points. Some fitness software is offered at a flat rate for an unlimited number of users and members, and other software charges based on users (employees and/or club members). Unfortunately, to find out pricing, most companies require a submitted request.

In general, larger companies charge more. MindBody, the industry leader, offers an Essential package that starts at $125 a month. The SaaS provider's highest tier begins at $395 a month. Some niche products, like WOD Hopper, offer flat monthly rates ($130 a month in the case of WOD Hopper), while others like Vagaro (for spas, salons and fitness studios) starts at $25 a month for one user, $35 a month for two users, and continues to scale upward.

Bottom Line
For gyms, fitness studios and personal trainers, gym management software is the best way to accept and track payments and manage both members and employees. If you do your homework and shop around, membership management software can help you minimize time spent on paperwork and analog tracking and provide a better experience for your customers.

Theresa Todman, Managing Partner/CEO of B&M Financial Management Services, LLC . Theresa works with small business owners and entrepreneurs to assist them with financial management and creating organized systems and procedures. She specializes in bookkeeping, accounting, QuickBooks solutions, small business tax issues and consulting.

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Wednesday, October 24, 2018

Is On-Demand Payment the New Payroll?

For nearly a century, payday has come every week or two for most employees. However, in a world of instant gratification, those days could be ending.

With research from CareerBuilder showing that more than three-quarters of full-time workers in the U.S. are living paycheck to paycheck, there are a growing number of services giving employees the opportunity to shorten the time between each payday. These services and payroll companies are giving workers the chance to collect a paycheck after each workday.

With the new payday services, employees can decide after each shift whether they want to get paid for that day or for the days since they were last paid. It gives employees the freedom to decide how they want to get paid and provides them some level of safety should an unexpected expense pop up that wasn't on their radar.

Among the services placing more pay control in the hands of workers are Instant Financial – used by restaurant chains like McDonald's, Taco Bell, and KFC – and Even, used by Walmart. With these services, employees receive a smartphone notification when they're done working for the day and can then decide if they want to collect a paycheck that day. If they do, the money is either transferred to a pre-paid debit card or deposited directly into the employees' bank accounts.

While such services as Even and Instant Financial are add-ons employers use in addition to their payroll service, payroll provider Gusto is now testing this feature as part of its core online payroll software.

Gusto launched its Flexible Pay offering in Texas in June. Similar to how the other services work, it enables employees to choose their pay schedules. Flexible Pay allows both salaried and hourly employees to choose their payday and get paid as soon as the next day. Gusto advances money to the employer to pay participating employees. 

"Flexible Pay can help people stay on top of their finances or react to sudden expenses without using payday loans or other high-interest loans like credit cards," Josh Reeves, Gusto founder and CEO, said.

Reeves said the two-week pay schedule, which the Bureau of Labor statistics reports is used by nearly 37 percent of employers, is a relic of calculating payroll taxes manually and was instituted in the U.S. almost 90 years ago.

"Our children already enjoy a better payroll system than we do, as they get paid after they mow the lawn or babysit while we wait for days and weeks," Reeves said. "With modern technology, people shouldn't have to wait to get paid for the work they've already completed."

Nelson Lichtenstein, a history professor at the University of California Santa Barbara and the director of the Center for the Study of Work, Labor, and Democracy, said while the concept may sound appealing to employees – especially those in the working class who struggle paycheck to paycheck – he envisions more turmoil than stability.

"I think this creates more chaos and insecurities," Lichtenstein said. "If you get paid every single day, you are scrambling every single day."

Without having to wait for payday, you lose a built-in buffer that currently exists, he said.

"The two-week thing is kind of like a form of forced savings," Lichtenstein said. "I guess I am in favor of it."

Lichtenstein believes getting a lump sum every two weeks gives you more freedom to plan where that money goes. Getting paid every day puts employees in more of a scramble mode every day of deciding where their money might be spent.

"It just strikes me as exacerbating the endemic insecurities of the bottom half of the working class," Lichtenstein.

One of his concerns is the cost involved in using such services. Some charge the employer to give employees the benefit of getting paid daily, or charge the employees a fee to withdraw their money early.

If employees are taking on the cost, Lichtenstein said it could add up quickly. Even at $3 or $5 a day, it could end up costing employees a significant portion of their paycheck when spread out over an entire year.

"It's a nicer version of payday lending, but it is still payday lending," Lichtenstein said.

Gusto's service is free to both employers and employees. Reeves said because of Gusto's foundation as a payroll provider, the company has the data and insights to advance money to employers and consequently offer the program. He said Gusto understands an employee's actual income, how often they work, whether they've worked recently, and when they were last paid. Gusto also knows a lot about the business, such as how often they are paying employees and when they run payroll.

"We're advancing money to the employer, so Flexible Pay doesn't impact a business's cash flow or create complications with their taxes or back office operations," Reeves said. "People who prefer their regular pay schedule can opt out of Flexible Pay, but we suggest enrolling to stay ahead of any potential financial or other life emergencies."

Despite his reservations, Lichtenstein says the concept could "spread like wildfire" given the millions of Americans living paycheck to paycheck.

Reeves said he believes this is the type of pay structure businesses should always have been offering and said Gusto plans to roll out its Flexible Pay option to additional states soon.

Source: https://www.businessnewsdaily.com
Image Credit: Rawpixel.com/Shutterstock

Theresa Todman, Managing Partner/CEO of B&M Financial Management Services, LLC . Theresa works with small business owners and entrepreneurs to assist them with financial management and creating organized systems and procedures. She specializes in bookkeeping, accounting, QuickBooks solutions, small business tax issues and consulting.

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Tuesday, October 23, 2018

How to Justify Spending Money on Outsourcing

If you’re anything like me, you spend a good portion of each day arguing with yourself. Not out loud—at least not unless the argument is particularly heated!—just inside your own head.

“Should I post that photo to Insta now or later?”

“Don’t just wing it. Look up your optimum posting times, you goose!”

“Oh, right. Looks like I should schedule it for the evening.”

And on and on. Some of the arguments are over minor issues like which shoes to wear (comfort or style?), but others are more weighty (invest in a new laptop or hold out with the old clunker?) But here’s one argument I’ll never wage with myself again: I will NOT attempt to talk myself out of outsourcing portions of my work to capable freelancers.

I learned long ago that I shouldn’t even attempt to do everything myself, and I value my time too much to hem and haw about delegation.

However, I know that a handful of you are still in the hemming and hawing phase yourselves, so I want to give you three solid reasons why you absolutely can justify the costs of outsourcing to contractors.

Outsourcing Justification #1: You Can Earn More

Consider your current project backlog. How much more could you earn if you could make a serious dent in that list? Or even better, how much more could you earn if some of those projects could be delegated to skilled team members so YOU could focus on your highest-earning work?

Yes, you’ll have to pay out money up front to hire great contractors, but doing so will enable you to bring in more revenue. You won’t have to spend as much time “in the weeds” fretting over details and can dedicate yourself to big-picture, big-earning tasks.

Outsourcing Justification #2: You Can Use Your Time Better

Running your own business is time-consuming, especially if you’re attempting to manage every process entirely on your own. Going it alone often means letting long-term goals or strategic tasks slide in favor of handling the day-to-day work. It also means that you’re spending your valuable and limited time doing low-earning or maintenance tasks.

If you can earn $197/hour coaching clients, why spend that hour doing tasks you can outsource to a freelancer for $30/hour?

Entrusting those $30/hour tasks to a fleet of reliable team members means you’ll have more hours in each day to tackle the work that is most valuable to your business. Even if you have to spend some time training your freelancers at first, you’ll still gain back precious time once they’re all up to speed.

Outsourcing Justification #3: It’s an Investment in Your Business

Wait! I’m not just blowing smoke, here! I know that the whole “invest in your business” line is something that entrepreneurs hear an awful lot, but consider the return-on-investment: Say you pay $300 to a freelance writer to craft a report for you.

When you turn that report into a product you sell for $3,000, that’s a 10X return!

Even if you only sell if for $600, that’s still double! And since you’re likely to sell more than one of these products, you’ll continue to earn revenue off of that one-time investment of $300.

When you outsource work that has a high ROI, it’s easy to justify the costs of paying your team members.

I totally get it: Outsourcing can feel like paying someone else to do work that YOU could tackle by yourself. I hope these three justifications have shown you that delegating actually enables you to do more, earn more, and grow more!

Source: https://www.business2community.com
Image Credit: StockSnap / Pixabay

Theresa Todman, Managing Partner/CEO of B&M Financial Management Services, LLC . Theresa works with small business owners and entrepreneurs to assist them with financial management and creating organized systems and procedures. She specializes in bookkeeping, accounting, QuickBooks solutions, small business tax issues and consulting.

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