This will be a light week of blogging. We are on break this week between our summer and fall terms.
My column in yesterday’s Tennessean looked at some of the basic human resource practices that can be used when bootstrapping a small business.
For most small businesses, employee expenses are the highest single cost. To help keep control over cash flow, the entrepreneur should keep a careful eye on payroll expenses and consider some bootstrapping techniques related to human resources. Entrepreneurs often try to hire people in advance of growth, assuming that it is better to have employees already in place when new business comes in. But this can put a significant strain on cash flow, as you are trying to carry more people on payroll than your current sales can support.
While expenses are a high cost, employee retention is another challenge companies face. Balancing both is vital for a sustainable growth and better productivity.