Whether a startup company is bootstrapped or has a pool of investors willing to take the financial risk of making something happen, one thing is for sure; money doesn’t grow on trees. Any amount of money raised to start and grow a business is going to eventually run dry if it is not managed carefully. Investors do not like to see CEOs spending their hard earned money on frivolous things or expenses that would have less impact on the business they’ve invested in if it were spent wisely.
You might not have signed off on buying that foosball table for the break room yet, but there are things an entrepreneur might try to procure to keep their employees happy that is surely draining the bank account faster than free snacks and coffee.
Investors Like To Use PEOs Because They Offer More
When it comes to being able to do a whole lot more with less, a PEO is really the only choice. There are so many expenses that come with employing people and PEOs help an entrepreneur meet all of it in one place:
- Healthcare benefits
- Workers’ Compensation
- EPLI Insurance
- Payroll Processing
- Employment Law Compliance
- Recruiting Assistance
- Employment Tax Management
- And More!
Having to pay for all of these services adds up quickly, not to mention trying to manage all of those vendors is enough of a headache. A PEO is one-stop shopping for the busy entrepreneur who doesn’t have time to manage be his or her own HR department. Investors especially like eliminating things that take away from an entrepreneur’s productivity in growing a business. A PEO is a time saver with a lot of upside.
PEOs Save Investors And Their Entrepreneurs A Ton Of Money
What’s better than having one vendor do all of your HR and Payroll functions? How about a vendor who does it all for a whole lot less than buying it all on your own? Money isn’t a good business tool if it’s going out the door. Doing business cost effectively is the name of the game for keeping investors happy. They like to see entrepreneurs being as frugal with their money as if it were their own. PEOs make sense because their cost is incomparable to sourcing it all individually.
PEOs Offer Benefits Competitors Have For Start-Ups
If there is one thing standing in the way of an entrepreneur being able to recruit and retain top talent is is not being able to compete for talent with attractive benefits packages. In order for startups to appeal to a shrinking talent base, they need to offer something to recruits to make them want to stay. That something usually comes in the form of benefits. When need and money collide, what’s an entrepreneur to do?
The good news is PEOs offer the kinds of benefits entrepreneurs would never be able to offer their candidates. Good health insurance comes at a premium these days, and small business health insurance is just too much of an investment for the average growing startup to be able to handle.
Being able to offer world class benefits at attractive rates garners the attention of the right kind of talent and still keeps the checkbooks balanced. A healthy bottom line keeps the investors happy. It’s a win-win all around.
Have Any Of Your Investors Recommended A PEO?
If you’ve heard of PEOs through one of your investors, why haven’t you chosen one already? Doing an internet search on PEOs produces intimidating results. There are hundreds of choices. That is where a PEO broker like PEO Spectrum comes in. A short phone call to assess needs and budget gets you the top 3 choices for PEOs that best fit what you are looking for. Your investors will be happy to know PEO Spectrum’s services are free.
Finding the right PEO at the right price point is just a phone call away. If you are an investor, do you know can help your investments save hundreds of dollars on PEOs over small business health insurance? Contact us today to find out more.