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Small Biz World Summit Begins in 16 Days: Tip of the Day

07 Nov

The Small Business World Summit is coming to your mobile device and computer. Pre-register now and get the Small Business Growth Package worth $149 –  FREE!

The Summit gives you the answers you need to take your business to the next level – FAST! We answer your questions about marketing, sales, building online customer communities, cash flow, leadership, HR, and other challenges that you face every day.

Plus, it’s completely free to watch during Small Business Saturday Weekend (Nov 23 – 26).

Click here to learn more and to pre-register!. Plus, when you pre-register you will get a Small Business Growth Package worth $149 for FREE that includes:

  • Keeping Score Manual, Ribbon
  • Business Boot Camp Accelerator eBook: Setting the Stage for Growth, Marketing Edge
  • Building an Email List that Build Your business, Constant Contact

TIP OF THE DAY: Define If You Can Afford to Hire a _____!
Ruth King, Ribbon

You think you need to hire another field employee, i.e., an employee who produces revenues for your company. Can you afford to hire that person? The answer can be found using a quick calculation. If you are hiring an additional staff member for your office, i.e., overhead personnel:

  • Total the costs of that person’s anticipated yearly wages plus benefits. Take this sum and divide it by the gross margin of the company (assuming the person will work in more than one department) or the gross margin of the department she will be working in.
  • For example, assume that you are considering hiring a receptionist. Her yearly wages plus benefits are anticipated to be $30,000 per year. The company gross margin is 32%. The additional revenues the company must generate to cover her salary are $30,000 divided by 32% or $93,750.

Is this feasible or not? Can you generate the additional revenue or can this person make existing personnel $93,750 more productive? These quick calculations give you an idea of what revenues must be generated or what increases in productivity are necessary to hire additional personnel. If you don’t think this is feasible, then don’t hire that person!

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