A newly displaced worker turns to a PEO before starting her business.
A family friend recently lost her job at a large technology company and has decided to become her own boss and start a new business venture. She came into the office to discuss concerns she has with opening a new business. She has been looking at buying an existing business, a franchise business and or starting a new business from the ground up. During our conversation we talked about funding, marketing, employees and what rolls should she outsource such as accounting, payroll, staffing, marketing and other key areas that she may want to focus on after her business is up and running.
I gave Jenny and example of a new day care center we recently signed on in Westminster. The owner took over a building that used to house a day care for many years and is a well established business in that part of town. The owner is busy with parents doing tours of the recently remodeled building, preparing meals for the children and working with her small staff. She was to busy to even get the basic things done when it came to payroll and workers compensation. She looked at quotes for workers compensation but did not get any in place to cover her soon to be hired employees. In the mean time she hired employees and did not have coverage in place to protect her new employees. With the help of our PEO she was able to quickly have payroll and workers compensation in place. being a day care center she also need background screening and drug testing in place before hiring other employees. We where able to provide that service as well. A small business owner does not have the time source out multiple vendors during the first days of a new business.
We also talked about other hidden perils of buying a business. For further detail and areas to look out for when buying a business see the link below to another blog written by StaffScapes a few years ago. All the information mentioned is even more important today as our economy slows and business owners begin to make changes.