The following is a guest blog by Madison Davis. Madison is a recent graduate who received her MBA in business management, Madison shares tips on finance,management and hiring the perfect employees.
The year 2013 started off with a thud for a vast majority of small business owners. A tax increase from 35 to 39.6 percent was implemented for anyone making over $400,000 annually, which especially effects S-corporation partners. Several small business owners say they’ve been forced to lay off or terminate employees to make up for the shortfall. However, there are several strategies CEOs are embracing to not only to save jobs, but boost company profits at the same time.
Work From Home Opportunities
Despite the new rules at Yahoo, More than 50 percent of information technology workers are nowworking from the comfort of their homes, according to a 2011 Microsoft survey entitled “WorkWithout Walls.” While many CEOs still see telecommuting solely as an employee benefit, MicrosoftCorporate Vice President Ron Markezich told Govtech.com that telework is “becoming imperative.”The survey found that worker productivity and morale increased, diversity increased, and overheadcosts for businesses dropped when employees worked remotely. James Sinclair, founder of OnsiteConsulting, a hospitality consulting firm, told Microsoft that he and his employees are making moremoney because they can now work on-location with potential clients.
Employers and employeesdisagreed on how much of their work time should be done remotely. Employees said nine days permonth, while business owners thought four days was adequate.
The term “outsourcing” has developed a negative connotation in American vernacular, but it doesn’t always have to mean what you think it does. 78 percent of companies say they will integrate more cloud technology into their own business in 2013, according to a survey by OneLogin, an industry leader in cloud-based identity management. Clouds are services— such as remote hard disk storage and remote network administration— that are outsourced to another company. This can eliminate the need for, among other things, an expensive on-the-premises server and air conditioning to keep it cool.
The companies that embrace these new technologies or develop their own are the ones that will the most profitable going forward. Brian Ferdinand, President and Co-Founder of Liquid Holdings, a stock and commodities trading firm, has been successful because his goal has always been to stay ahead of the curve on technology solutions.
The relatively new phenomenon known as BYOD, or “bring your own device,” has steadily picked up steam as a cost-saving and morale-boosting strategy for small businesses. 89 percent of IT personnel form small and medium businesses said they support implementing or strengthening BYOD policies at their company, according to a survey by Cisco. The obvious and immediate benefit to CEOs is the fact they would no longer have to foot the bill for office computers. Some companies have been hesitant to adopt BYOD policies, however, due to security of confidential and proprietary company information.
Whatever the measures, small companies are finding creative solutions to stay in business and be profitable despite the new taxes they have to deal with now and those that will kick in in 2014.