The costs of running an SMB. From payroll to outsourcing, it’s all in here.

Small and medium-sized businesses often have difficulty handling all their human resources needs in-house. They may lack the expertise to keep up with ever-changing employment-related requirements. This puts them at risk of potential costly fines or claims. They may not want to spend the money or invest the time to run and maintain in-house HR software. They don’t want to burden their employees with routine and repetitive HR tasks when they could be contributing to growth initiatives instead.

For many of these businesses, HR outsourcing provides a welcome solution. The personnel at HR outsourcing companies are generally experts in their fields. Outsourcing companies also generally provide access to modern HR cloud technology and take care of maintaining and updating it.

Determining HR outsourcing costs is a key step in deciding whether outsourcing is the right option for your company. HR outsourcing costs are estimated to cost $45 to 1,500 a month based on the number of employees and services engaged. Many factors contribute to outsourcing costs.

Typical startup costs
There are numerous types of startup expenses, depending on the type of business you’re planning. Here’s a list from the Small Business Administration  of the most common costs to consider when starting a business.

Office space
The cost of renting or leasing a workspace is a significant startup expense. For some businesses, finding the right location is critical to their success while others simply need a workspace that is the right size.

Utilities
Bills for electricity, water, gas, and other essential services are examples of post-opening costs and should be relatively fixed. Security deposits for these services, however, are pre-opening costs.

Equipment and supplies
The type of business will determine how much you need to spend for essential machinery, computers, and office supplies.

Communications
Phone systems, internet connections, and communication tools are critical for staying connected with customers and partners. If your business relies on a well-rounded customer service team, for example, it might be worth the cost to make sure customers can reach you via multiple forms of communication.

Licenses and permits
 Fees associated with obtaining the necessary legal permissions to operate your business can vary depending on your location and industry, but they’re a must-have to operate legally.

This informative guide contains everything you need to know about creating potent compensation plans, including recent compensation trends to enhance the attractiveness of a position to potential hires.

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