Last week, the federal minimum wage increased 70 cents from $6.55 to $7.25. For those small to medium business owners in California, this increase is irrelevant due to higher state minimum wages (for us in CA, it is $8.00!). But for many other states, this increase is worried to cause owners slashing hours to save money.
According to the Economic Policy Institute, the increase in minimum wage will bring $5.5 billion more into the economy. Others are hoping that the hike will cause an increase in the quality of applicants for minimum wage positions.
Here are a few tips to that can help you stay profitable despite the increase in minimum wage.- Use Interns. Many universities and colleges require internship hours to graduate. Utilize these young, bright minds!
- Reduce printing and paper costs by storing documents and spreadsheets online with Google Docs.
- Eliminate the need for a full-time receptionist/answering service by using an online scheduling system.
Despite all that, there is no doubt that the timing could not be worse. The law (passed in 2007) did not allow for a delay in the increase if the economic climate weakened. With small, medium, and large businesses trying to cut costs any way they can, this increase may be the tipping point for some. What do you think?