Are you ready for the new minimum wage increase?
As of January 1, 2019 the new minimum wage is $11.10 and tipped employees minimum wage goes up to $8.08.
Being an employer is hard, that is why our staff at MD Bookkeeping works diligently to provide you with the latest information and updates regarding payroll.
Don’t think you’re ready for the increase?
You are not alone! There are several small business owners just like yourself wondering how this is going to affect your business this New Year. This will affect your margins and cash flow.
“Maybe some other businesses can pass it on to the customer and not affect their bottom line, and it might help them with retention,” Tara Oxley says. But as a small restaurant and small shop owner, Oxley says she already works unpaid shifts herself so she can make payroll.”
Some business owners believe that this will increase tenure and reduce employee turnover-either because employees will work harder, since their job is now more valuable to them or because management expects more from them.
Economists view it has a stimulator to the economy because it may help low-income workers afford larger purchases such as a new car loan.
The question is how are you going to take on this extra cost?
There are a few ways you can go about increasing your cash flow.
Take out a Restaurant Business Loan
A short-term business loan can help you keep your restaurant in the black until business resumes. There are local banks and online banks that may offer small business loans in the form of cash advances. This will let you borrow from your future credit card sales.
Decrease Restaurant Overhead
If you sales aren’t covering your expenses, it’s a good time to start trimming fat from your inventory, payroll and other areas. Review your menus and see if there are items that aren’t selling. Decreasing your menus can limit the amount of inventory you need to order each week. You can also adjust staff to be fewer in number on your slower days-both on the floor and in the kitchen.
The main focus you need is to see where you can cut costs and/or bring in new customers to handle this new wage increase.
Are you looking for new ways to bring in more customers? Check out our article on effective marketing tips.