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!
Published by Beth Goldstein, Edge Institute
While I am currently pursuing my doctorate in education at Johns Hopkins University (part-time), I remain passionate about helping small business owners and entrepreneurs accelerate growth. I founded my consulting firm, Marketing Edge Consulting Group, in 1999 and established the company's training division, Edge Institute, in 2013 with a focus on helping small business owners, executives, students and entrepreneurs better understand how their key stakeholders think, what they value and what influences their purchasing decisions. I then show them how to apply this knowledge to create targeted business growth programs that drive revenue growth while increasing profitability and customer loyalty.
I teach entrepreneurship and marketing courses at Babson College. Previously I taught marketing courses at the Heller School for Social Policy & Management at Brandeis University. I also spent 13+ years at the Boston University Questrom School of Business where I taught entrepreneurial sales & marketing courses, ran their New Venture Competition for ten years and served as the Faculty Director for the university’s top ranked Online Graduate Certificate in Entrepreneurship Program from 2005 to 2014.
I have conducted business growth workshops throughout the US for organizations ranging from publicly funded groups like the MA Supplier Diversity Office to Fortune 500 companies like Fidelity Investments and Carrier Corporation. I served as the Lead Instructor for Interise’s nationwide training program, run in conjunction with the US SBA: Small Business Association's Emerging Leaders (e200) Initiative, providing training to hundreds of business owners throughout the U.S. I was also the Managing Director for the BU Urban Business Accelerator Program, an educational program that brought students to economically disadvantaged neighborhoods in Boston with the goal of improving financial capacity & business.
For Babson Global, I was on a 3-person MBA design team that created an innovative MBA program for the Mohammad Bin Salman College of Business and Entrepreneurship, Saudi Arabia. I also led the design teams for the Masters in Entrepreneurial Leadership and the 4-year undergraduate marketing degree.
I specialize in custom-designing classroom and online business growth training programs ranging from 1/2 day workshops to intensive 9-month programs for a companies as well as government agencies and organizations. I have taught in the U.S. and abroad including: China, Egypt, Indonesia, Kuwait, Lebanon, Mexico, Nigeria, Oman, Saudi Arabia, Thailand and the United Kingdom.
I have more than 30 years of direct industry experience and hold an MBA from Boston University and a BA in Economics and Sociology from Brandeis University. I am currently pursuing my doctorate in education at Johns Hopkins University School of Education.
View all posts by Beth Goldstein, Edge Institute