If you could give a small business owner ONE piece of advice, what would it be?

Answered by:

Kari Apel, CPA

Highly recommended
Midwest Financial Group, Inc.
72 Questions answered
Answered on June 5th, 2018

You MUST hire professionals to do those things that you aren't good at.  Most business owners are type A, over achievers with freakish control tendencies.  Your business will make the most money in the long run if you are selling your business and working on those items that make you the most money. For example, if you are doing your own payroll, get rid of it!  You can pay someone to do it for you in less than half of the time it takes you.  Plus most payroll companies will pay any penalties incurred if they screw up.  Pretty nice insurance policy on that to boot.  Let's put it in monetary terms - if it takes you 1 hour to do your payroll and your bill rate to your clients is $100 but you decide to outsource it whereby the payroll company charges you $35 to do that same payroll, you just bought yourself an hour of time and $65 more in your pocket if you take advantage of that hour (actually more if you consider the tax consequences.) The vast majority of clients I have seen that do their own payroll make a mistake at least once per year and the penalties they incur from that one mistake actually could have covered about half or more of the payroll preparation costs, nice insurance policy as I said before.  This is true for a lot of other services as well.  If you aren't earning the highest return for what you do hourly/ daily, get rid of the task and hire someone at a lower rate than what it would cost you. 


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