Will The Minimum Wage Increase Affect Your Business?

There was a big push for an increase in the federal minimum wage and it was officially implemented on July 24,09. Many small businesses now have to face the challenges of dealing with and complying with the federally mandated minimum wage increase.

For the those that don’t know: the federal minimum wage is the legal lowest amount that an employer can pay an employee. The minimum wage was increased from $5.15 an hour to $7.25 an hour. With the installation of the federal minimum wage that was implemented on July 24,09, how will it affect your buisness? If you are a business that employs many employees do you see this as a big problem?

It can be somewhat of a boost to the working poor or people who work for minimum wage in addition to other incomes, but it’s not great, considering all of the taxes that will be taken out of an employees paycheck. The increase in the minimum wage will have a big impact on some companies & they will see financial changes in the coming years.

Many states & companies already pay wages at or above the new minimum wage, so this increase may have little impact on them. Depending on the industry that you’re in, the impact of the minimum wage might not hurt so bad. It may really hit hard in the fast-food industry, retail industries etc…

If you are like many small companies, then you’d need to plan for and compensate for the growing labor costs. When you take a look at the minimum wage and how it will affect your business, you have to consider your labor costs and redevelop your day-to-day business operations. You have to look at ways to increase efficiency in your workplace and find creative solutions to reduce your overhead.

Many small companies deal with this by increasing prices for products, services or even firing employees. To help minimize increases in pricing & labor costs, many small companies have chosen a creative solution and that’s to implement onshore outsourcing.

In using onshore outsourcing, many of them are outsourcing and utilizing Virtual Assistant services. Virtual Assistant services (also known as VA’s), help to lighten your load, reduce labor costs, you’re  able to maintain business as usual more efficiently, more effectively & increase business productivity.

That’s one of the many ways that companies get ahead of their competition, maintain a successful business. When working with a VA, you reduce your overhead, you maximize your efficiency, your productivity and your bottomline.

For most small companies there is an upside to the minimum wage increase, and it’s knowing that it can stimulate the economy. Usually when people make more money, sometimes they make lifestyle changes and they buy more which generates more revenue in the economy.

The increase in the federal minimum wage doesn’t have to be looked at as a negative it can be a positive for your business. As a business owner you need to have a strategic plan of action for times like these.  Don’t wait till the last minute or wait till bad things happen to develop a strategic plan of action for the bad times in business. Plan ahead. With a strategic action plan, you’ll be able to attack problems head on, then there will be less problems for you.


Clerical Business Solutions~