A small business is defined as a privately owned corporation, partnership, or sole proprietorship that has fewer than five employees and less than a million dollars in annual revenue. The definition of a small business may vary from country to country and industry to industry. The U.S. Small Business Administration has a set of industry standards to determine whether a company meets these requirements. Here are some of the things to consider before starting a new business.
Providing flexible work arrangements
is an important cost-saving factor for small businesses. By allowing employees to work from home, a business can cut down on office space and utility bills, as well as costs associated with expanding into new areas. In addition, a study by the Society for Human Resource Management found that small businesses that offer telework to their employees save approximately $10,000 per employee each year in real estate costs. For small businesses, offering this option to employees can help them perform better and grow faster.
The SBA’s table of small business size standards
includes an analysis of how many employees are appropriate for each industry. There is an acceptable number of employees for each sub-sect of the business. In general, a small business cannot have more than 25 employees. However, some industries have more stringent limits. For example, agriculture is considered a low-risk sector, and a company can have up to 750,000 in average receipts. The maximum number of employees in the construction industry is 500.
Fortunately, many small businesses
can use telecommuting policies to reduce attrition. As the economy has become increasingly global, companies can no longer afford to keep a constant stream of new hires. As a result, they are adopting a variety of work arrangements to keep their talent in the company. One study by the Society for Human Resource Management found that 45% of small business owners are confident in their ability to manage their teams from a distance.
While the advantages of teleworking for employees are obvious
there are also significant costs to employers. In addition to the benefits to employees, the cost of office space is reduced and a business can expand into new territories with less overhead. Those costs are just some of the factors that can be cut when using teleworking policies. For instance, remote employees can save up to 10% of their salary. By reducing their commute, a small business can save up to $15,000 in real estate.
A small business can benefit from teleworking policies.
According to a study by the Society for Human Resource Management, 75% of small business owners believe their organizations are well-prepared for a disaster. When disaster strikes, they need to be flexible and adapt to a changing situation. As a result, a company can be more productive when its employees can work from their homes. Having an employee who is free to work at home can also benefit your company in other ways.