There is an old saying that “A saved penny is a penny earned.” Quite simple in theory, but not so easy when you try to run a profitable business.
Everything costs money, office rent and overhead, to employees and much more. And then, there are those unexpected and unnerving expenses that stand up ugly every time you think you’ve managed to cringe until the end of the month with some sawbucks at the bank!
One of the most effective ways for a business to save money on the things that cost it the most is to take all or almost all of its business by getting a virtual address by renting office space, and hiring virtual employees. As you learn, tens and hundreds of thousands of dollars can be saved each year, depending on the size, scope and overall needs of your business.
Office and Overhead (Tens of Thousands of Savings)
This expense is difficult to quantify as rent, utilities and other expenses will vary considerably from one region to another. Consider that a modest 2,000 square foot commercial space will start at around $ 26,000 a year. Then overhead costs are half as high, and you are already in tens of thousands and you have not even bought furniture yet!
Very expensive, since many small businesses just need an official address to legitimize their business on paper, for tax purposes and to gain more consumer trust from their brand. Regardless of why you need to rent a virtual office on a physical address, you still pay only a fixed monthly fee when you use a virtual service, which reduces rental costs, utilities and other incendiary overhead office expenses.
Material and furniture (from ~ $ 5,000)
It is almost impossible to equip a small office for less than $ 5,000. In fact, this number would probably be conservative for 1980, not to mention the current digital age and the need for:
- Stand-up tables,
- Ergonomic chairs,
- Desktop Computers,
- Ergo Mouse,
- Monitors without glare),
- Faxes and Photocopiers (plus current expenditures on toner and paper)
- Meeting tables,
- Sofas and lounge chairs,
- Amenities of the bathroom,
The expenses to provide and maintain an office do not stop there, but I hope you have the idea. Read this to learn more about the basic elements needed to create an appropriate office.
Recruitment (~ $ 5,000)
Recruitment costs can skyrocket into the Thousands by mail, for a growing business (and we all want to grow, right?) From online advertising and to the # 39; hiring recruitment companies, the need for HR staff – the time spent calling, sending emails and interviewing candidates, and doing background checks.
There are many costs to consider, which can vary from one industry and one type of business to another. Since a virtual service does all this work for you, recruitment fees can be a thing of the past for you and your business.
Home / Administration (~ $ 30,000)
Most businesses require reception and administration staff to manage phones, make data entry, and so on. This is an important expense for any business. Often, a small business can not pay an extra $ 30,000 per year per employee to hire someone for this task, especially if the phones rarely ring and there is a lot of time to work. stop between calls.
Virtual services offer on-demand reception, which can evolve as you grow, while offering the benefit of 24-hour availability, often at no additional cost.
Integration (~ $ 400 per employee)
Onboarding, the process of acclimatization and training of a new employee, starts at $ 400 and increases from there depending on the type of company you are running. These costs often double and triple for each position for which you hire because many new employees may not succeed in this process, either by deciding that the position does not suit them – either by deciding that they are not at their expense. square.
Much of this process is simplified when using virtual services. You will devote only a small portion of your time to training receptionists and virtual assistants, which means that the costs of integration are a thing of the past.
Benefits (Salary Expenditures x 1.4)
Nowadays, if you do not offer health insurance, dental insurance and life insurance to your employees, the turnover rate is high. Every employee you hire will want this and other benefits such as matched IRA contributions, vacation pay, maternity / paternity leave, a bonus structure, paid club memberships health, and more. Otherwise, your competitor in the street will steal them soon after you have (properly) trained them!
The typical costs, according to Joseph Hadzima of MIT are between 1.25 to 1.4 times the salary of a typical employee. Virtual service companies are 100% responsible for the cost of keeping their virtual team in staff, including benefits.
Legal obligations to employees (approximately $ 3 per hour worked)
New entrepreneurs are often surprised and financially sidelined when they realize all the mandatory (statutory) costs associated with hiring an employee into their business. Federal pensions and contributions to the social security system, unemployment insurance, disability insurance / work accidents and vacation pay are all costs that you will have to bear, depending on the country in which you are running your business.
As can be imagined, virtual office services take care of the employees that they provide to you, saving you thousands of annual legal obligations that you would otherwise have paid for by hiring a member of the full-time or part-time staff.
How much can you save?
There are many headaches that accompany the management of an office and its staff. It is up to you to decide whether or not you can transition from virtual to your business, but the potential for savings should be obvious at this point.
Whether it’s rental savings, employees, or you just want to get a virtual phone number to streamline and simplify incoming phone calls into your business, virtual services can save a lot of money every year.