The expenses associated with operating a small business can be overwhelming - and potentially detrimental to the company’s bottom line.Using virtual solutions may lower your human resources and overhead costs.Plus, you can depend on a reliable staff to get the job done right - without the hassle or frustration of traditional employee management.
Human Capital Costs Money
Not only are loyal and enthusiastic employees hard to find, they’re difficult to retain and (sometimes) manage.Costly, too.If your company hires an employee at an annual salary of $35,000, it will actually cost your business more than $46,000 in compensation, taxes, benefits, work space, tech (equipment and software), and more. Did we mention that it’s estimated that one employee uses about $200 a year in office supplies?
And those are just some of the direct costs associated with employing someone on an annual basis.This doesn’t take into account additional expenses associated with recruitment and hiring, or separation, if the employee should resign or be terminated.Consider the lost revenues while a new employee on-boarding, and not as productive at the outset.And if their performance is generally lacking? Yes, there’s lost revenue there, too.
All these costs add up to a lot of additional administration and management time (and expense), as well as frustration.
An employee hired at an annual salary of $35,000, will cost the employer at least $46,247 or more when all associated costs are considered.
1 Source – ADP payroll
2 Based on two weeks of vacation\personal days.
3 MIT “How much does an employee cost?” article published in the Boston Business Journal. $2,000 represents the minimum cost.
4 Technology is based on a modern mix of equipment and software. Everything has been converted to monthly costs – computer, phone, internet, email and SaaS (software as service – Quickbooks user, Salesforce.com, etc.).
Workplace Woes
Whether you rent or buy, office space is costly.And if your business must maintain an inventory, that’s another expense incurred: warehousing costs. In fact, to maintain and staff a 1,500 square foot warehouse, expect operating costs to exceed $65,000 per year.Housing your business - whether office,warehouse, or both - requires expenses not just for the lease, but for utilities, taxes insurance, equipment, staffing and more. This overhead bites into you profit.
What if there was a better solution, that offers you the cost-effective, dependable staff and warehouse services you want, leaving more money in yourcoffers? There is a better option for small business - or businesses of any size: virtual workforce and warehouse solutions.
1 Based on lease of 1,500 square foot warehouse with lease rate of $5 per square foot, $2.50 per square foot for utilities, taxes and electricity and insurance, $750 per month for minimally equipped warehouse (small fork lift, hand trucks racking, etc.).
2 Based on ASD FTE calculation for $15 per hour employee less workspace.
Virtual WorkforceImagine an experienced staff that reports to work on-time, is highly productive during work hours, and doesn’t require the additional expense of benefits, payroll taxes, tech, and more.Even better, you don’t have to spend time supervising them.With a Virtual Workforce, like that offered by ASD, you have an experienced team that manages administrative tasks, customer support, and project management, to name just a few items on the list.And with customized solution suites for small businesses ranging from $1,500 to $3,000 per month, you can keep your productivity up - and your costs down.
Virtual Warehousing
For businesses that maintain inventory, warehouse space is a necessity.But at the costs mentioned previously, could be operationally prohibitive for many companies.With Virtual Warehousing, though, businesses can secure the equivalent of that 1,500 square foot warehouse - and the staff to receive, pick, pack, and ship - for about $2,500 per month.Use the money you save to grow your business.
Dare to Compare
Let’s look at the costs a small business can expect for a full-time, administrative employee and that 1,500 square foot warehouse.If that business were to manage this independently, the business owners would be looking at an annual cost of $113, 604.However, with customized Virtual Workforce and/or Virtual Warehousing solutions, like those offered by ASD, the same objectives can be achieved for $48,000 to $66,000 per year - that’s a cost savings of 42% to 58%.
In addition, this business would enjoy benefits including:
- $0 capital expense for equipment (technology and warehousing)
- Flexible warehouse capacity, on-demand
- Customized, flexible business and warehousing services
- Expertly managed, experienced administrative and warehouse teams
- Service staff available where and when they’re needed
- Lower risk and liability
- No long-term commitment with ASD
- See a cost savings in as little as 30 days
- More time to focus on business development
To learn more about ASD’s Virtual Workforce & Warehouse Solutions, contact info@ASDWW.com, call 1-888-639-5685, or click here to contact us directly.