Base pay elevated
While 13 states have increased or will certainly add the base pay increase for employees in 2014, 11 more states will certainly take it into consideration this year.Is your state one of those? As a small business, you will need to make adjustments for this increase:
1) More than ever, it’s imperative that you know your bottom line – your net income. This is what will tell you what you can afford. It won’t hurt for you to also understand your profit margins, cash flow, business plan, and projections to intelligently make necessary changes.
2) Invest in the best employees you can hire. This will eliminate the time wasted on people who won’t make it through your training period. Hiring the best will also reduce turnover rates and can increase productivity.
3) Adjust your rates – this only makes sense since your expenses are increasing. Decide if you will increase your rate for new customers only or across the board; you don’t want to lose existing clients. And you don’t want to scare off new customers by raising them too high.
Don’t wait until you’re faced with shutting down your business. You need to be proactive on this issue or face the consequ3ences later on.
Read more on the states affected…
