Rather than contributing our opinion to the current debate about whether or not it makes economic sense to raise the minimum wage to $15 an hour, let’s assume that the protagonists will ultimately win this legislative battle and get their way. As an owner of a smaller to mid-sized manufacturing or distribution company, how will you respond?
You could lay off workers or cut back on their hours. You could do a number of things that may initially seem frugal but that end up crippling your bottom line. Heck, you could even close up shop and go out of business altogether. However, we suggest that you take all those productivity-slaying options off the table.
Rather, you could deal with this government-mandated employee wage increase in a systematic manner that actually:
- reduces your expenditures
- significantly boosts your earnings
- dramatically increases the enterprise value of your business
- gives you hard-to-ignore marketplace advantages over your competitors
If you so desire, you may decide to add another shift and maximize your throughput -- or you may gain the ability to lower your prices while still remaining profitable.
The $15 minimum wage requirement can provide a timely opportunity to turn expenses into earnings, and we mean it. If you would like to explore partnering with us on gainsharing basis (which means no upfront fees, no retainers, only a success fee paid out of the dollars we save for you), reach out and engage with our expense2earnings, LLC experts Richard Montellano or Peter Thusat.