In 2007, we started a company in San Diego, CA. Over the next 4.5 years, we grew to 35 million in annual revenue and 130 employees. About 77% of our staff was admin and customer service. That's about 100 employees.
Each admin/customer service employee earned: $39,000/yr (incl. payroll taxes, office space, etc.)
Total payroll costs annually: $3,900,000. Or $325,000 per month.
Most of their work comprised of making phone calls and following up on orders. Work that could be done from anywhere. Additionally, due to the number of employees we had, we then had to hire a Director of Human Resources.
Total Cost for Director of HR: ~$127,000 per year
Then we incurred additional hiring costs, firing costs, unemployment, paid time off, sick days, office politics, etc. Okay, I'm making it seem a bit exaggerated, but all these things are real; especially as you're growing a business.
Here's what's not exaggerated. As we approached our fifth year in business, we lost everything and had to close our doors. We ran a great company, but like many businesses, our margins thinned over time as the business became commoditized.
One of the top three reasons we had to close our doors: excessive payroll costs and the inability to scale up or down quickly enough.
Years passed and as we built new businesses and educated ourselves, we were introduced to outsourcing a few years ago. It changed our lives for all of the reasons I mentioned above. I started to reflect and realized the incredible mistakes I had made in my prior businesses. That thought never left me.
We wanted to share this opportunity with the small business world. While outsourcing, remote assistants, virtual assistants, or whatever you want to call, it is not a new concept, very few people leverage it.
If we go back to the cost of the 100 employees above, what would they cost if we were to outsource. The quick answer, less than half the cost; and that's for a fully managed and trained team that we would have been able to scale up or down as easily as sending an email.
Total cost of 100 outsourced employees: ~$150,000 per month.
While there's a lot more to share, we hope this story gets you excited about learning more about how we can help you and why we started this company.
With ClearDesk, we hope to provide you clear results and clear savings!