The new 2024 started and the holidays are over. The first quarter of the year is the time for planning and analysis. However, some company managers often neglect the analysis part and skip to planning budget, because they are anticipating new customers, business growth, or expansion.
Nevertheless, seasoned CEOs spend tons of time analyzing the cost-to-income ratio. This allows them to determine the profitability of the business, and only then get to planning. The main thing to analyze is whether the business is cost-effective, or not.
Why your company needs planning?
Budgeting and planning are a must-have for big and mid-sized companies, just because they can afford it. They’ve got huge departments dedicated to each business process. When it comes to smaller companies, cost-effectiveness is a challenge.
Profitability consists of many things. If you cannot predict or control your income, you can definitely take your expenditures in control instead. That is why as a small business owner striving for profitability, you should look at what swallows most of your budget. These are the most common things a company spends money on:
– salary and bonuses;
– rental payments for the office;
– office equipment,
– marketing and promotion;
– bookkeeping and tax preparation;
– licensing, taxes, etc.
Do you think this is a lot? Here is the table below:
As a result, the biggest part of your total gross income is spent on salaries and stuff that is not necessary. Therefore, they reduce the cost-effectiveness of your business. When it comes to planning for the upcoming year, there is a solution for small businesses that can reduce costs drastically. Here comes the idea of BPO and Virtual Assistants.
Services to be delegated
BPO is an innovative approach to business management, hence Virtual assistants are indispensable for smaller companies. These specialists allow them to scale their business by eliminating unnecessary costs. Companies, located abroad, make the process even more affordable, providing the same level of expertise. Usually, businesses outsource to Virtua Assistant agencies for:
– marketing and advertisement;
– invoice processing;
– website/blogging/copywriting;
– accepting phone calls, emails, etc.
– bookkeeping and tax preparation;
– social media;
– and many more.
More about services Virtual Assistant Agencies provide is here: https://vafromeurope.com/2022/01/18/tasks-to-be-delegated-to-a-va-agency/
Delegating to a company overseas can be hard in terms of control and staying in touch with your team. However, professional Virtual Assistant agencies can walk you through the process of hiring the right person to work towards the mutual goal. Reach out to VAfromEurope and will find the right solution for your business.
