What do an SBA Loan, market research, and new hire costs have to do with one another? Well, everything really.
Earlier this month we talked a lot about all these things, individually. Now, let’s discuss how they all work together.
You’re running your business and everything seems to be going pretty swell, so you decide to bring on help. Before placing that ad, you need to do some research. This is where our market research skills are coming in to play. Hop on that Google machine and search for what others in your area are paying, benefits being offered, etc. This will make sure you’re staying competitive so you can bring in the best talent.
Since you’ve done some market research, reducing those new hire costs is inevitable. Just taking an hour out of your time to search around, you’ve already eliminated some of the common cost-driving factors in the hiring process. As we mentioned a few weeks ago, a new hire can cost companies on average $5K but have gone so high as to cost $50K. Maybe it’s just me, but I prefer to spend the least amount possible to achieve the desired outcome.
Some of the problems with new hires is that the right fit didn’t come on board. A lot of new hires quit within their first 30 days, which drives up the new hire costs. By staying competitive and writing a clear description of the company, role and company culture, you avoid hiring the wrong person.
Be sure to share that job on your social networks and ask your in-person network (yes, those still exist) if they know anyone. Utilize any current employees. Maybe they have a friend they’ve worked with in the past who would be a great fit. You can cut costs and make a current employee happy as a clam.
While we can do market research and we can cut costs on hiring that perfect fit, things still cost money. If you’d like to bring on a ton of people, say for the holiday season, an SBA loan could be incredibly beneficial. As Daniel mentioned on the live stream last week, SBA Micro Loans are great for working capital, i.e. you could bring on a larger quantity of quality staff without worrying about the up-front costs. An SBA Micro Loan will offer you great terms and rates so you’re not breaking the bank to grow your business, allowing you to serve your customers the way you’d like to.