10 Updates
Expenses Rise For Small Firms
Photo Credit: Forbes Business

Expenses Rise For Small Firms

Mar 29 2014, 2:44pm CDT | by

If you’re feeling the pinch of higher expenses at your business this year, you have plenty of company. When small and midsized business owners were asked what one thing keeps them up at night in a...

Filed under: news

 
 
 

16 weeks ago

Expenses Rise For Small Firms

Mar 29 2014, 2:44pm CDT | by

If you’re feeling the pinch of higher expenses at your business this year, you have plenty of company.

When small and midsized business owners were asked what one thing keeps them up at night in a national survey released this month by PEX Card, the top response was “expenses eating into profits,” cited by 22% of business owners. Generating new sales was number two, accounting for 17% of responses.

Among the national sample of businesses surveyed at the end of 2013, 63 percent of businesses expected their spending to increase in 2014.

But not all of the spending is a bad thing. PEX founder and CEO Toffer Grant says that the uptick reflects, in part, businesses’ willingness to invest in growth. “People expect to have increased expenses due to improvements in business in general and the economy,”  he says. “I think it’s a very positive report.”

So where are owners spending more? The top categories showing an uptick were compensation for non-sales employees, health insurance, fuel and equipment repairs and maintenance.

Half of companies saw fuel spending rise in 2013, though gas prices have leveled off in many states or come down. For comparison, in 2012, more than 65% of companies saw their tab rise. For small firms with nine employees or less, the average fuel spending in 2013 was $20,500, compared to an average of $135,300 among firms with 10 employees or more.

When considering spending on fuel, it’s important to note that the survey skewed more toward contract businesses and skilled tradespeople, rather than retail firms, notes Grant. And their bigger fuel bills likely means they are busy. “You’re not going to put a truck on the road to burn fuel unless there’s a reason to do it,” he says.

While the cost of healthcare is going up for many firms, that often depends on the size of the business.

For instance, among firms that have up to 9 employees, only 36% expected the Affordable Care Act to affect their healthcare spending this year. Just 21% experienced an impact so far.

The picture was quite different for firms with 10 employees or more, where 58% of respondent predicted they would feel the effects this year. Among this group, 49% reported an impact so far.

Though salary expenses are rising at all firms, firms with 10 employees or more spend a greater percentage of their budgets here. Salaries for non-sales employees averaged 25% of their average budget of $2.3 million, or $580,600, in 2013.

In contrast, smaller firms spent 21% of their average $363,000 annual budget paying non-sales employees, averaging $77,300. It seems likely that a fair number of those surveyed were one or two-person businesses, based on the average salary expenditure.

The firms with one to nine employees average $6,900 a year in healthcare expenses. In contrast, those with 10 employees or more spent $180,000. (Ouch!)

Equipment repairs ran the firms that have one to nine employees $9,300 in 2013. For firms with 10 workers or more, equipment cost $74,400.

While small business owners may have to get creative to outrun these expenses, the increased spending in a couple of key areas could benefit the economy in some ways. For instance, when small firms spend more on salaries, it goes to employees. And the folks who repair the business equipment for these firms may be small business owners themselves./>/>

Hopefully, many businesses will see increased revenue this year to offset the expenses.

Source: Forbes Business

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

UK's First Girl Summit Discuss An End To FGM And Forced Marriage
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakyat ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

6 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hish ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

6 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over R ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

6 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa Mohamed s ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

6 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year inv ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

6 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar Scheme 2 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

6 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway ( ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

US airlines cancel flights to Israel
Washington, July 23 (IANS) Two major US civil aviation giants, Delta Airlines and US Airways announced Tuesday that they have cancelled flights to Israel due to safety and security concerns.
 
 
China's rotten meat scandal spreads to Japan (Roundup)
Beijing/Tokyo, July 22 (IANS) A rotten meat scandal which led several fast food chains to withdraw some of their most popular dishes in China this week spread to Japan Tuesday, as McDonald's announced it had stopped selling fried chicken.
 
 
Study reports worldwide drop in HIV cases
Sydney, July 22 (IANS/EFE) The number of people with HIV has dropped by 18.7 percent since 2012, according to a report made public at the 20th International AIDS Conference being held in Melbourne.
 
 
China seals McDonald's, KFC supplies after scandal
Beijing, July 22 (IANS) Authorities in China have rushed to seal up suspicious meat products in fast food chains, including McDonald's and KFC, after one of their suppliers was accused of selling stale meat.
 
 
 

Latest from the Network

Kevin Spacey offered donation to turn vegetarian
Los Angeles, July 23 (IANS) Actor Kevin Spacey has been offered a donation of $6,000 to his theatre company by animal rights campaigners if he switches meat for vegetarian food at an upcoming fundraising barbecue. The...
Read more on Celebrity Balla
 
22 killed in Baghdad bomb attack
Baghdad, July 23 (IANS) At least 22 people were killed and 45 were wounded in a car bomb explosion in the capital Baghdad Tuesday, a source from the interior ministry said. A suicide bomber blew up himself at a...
Read more on Politics Balla
 
Apple TV Is A Huge Cash Cow, Which Is Why Apple Is In No Rush To Make It Better
There is one thing standing between Apple TV and being the number one media player, and that’s the enormous pile of money it’s making. According to the firm, Apple TV has now made $1 billion in media sales. These are...
Read more on Apple Balla
 
Every iPhone Has A Security Backdoor. Apple Denies It Is A Threat
iPhone and iPad users have long been able to laud the superior security of their devices over rivals. But it seems one crucial aspect has been forgotten: what if the hacker is Apple? Responding to an eye opening talk...
Read more on Apple Balla
 
Katie Price still loves cheating husband
London, July 23 (IANS) Former model Katie Price wanted to "throttle" her cheating husband Kieran Hayler, but that doesn't stop her from loving him. She was left broken hearted when she discovered her husband had...
Read more on Celebrity Balla
 
Lana Del Rey: I've 'slept with a lot of famous guys'
Lana Del Rey claims she's ''slept with a lot of guys in the industry''. The 27-year-old singer admits she's been romantically involved with a number of famous people in the past but none of them helped kick-start her...
Read more on Celebrity Balla
 
Shia LaBeouf wants to stay sober for Brad Pitt
Shia LaBeouf is determined to stay sober for Brad Pitt. The troubled star - who is currently on an outpatient program for alcohol abuse - is trying hard to kick his addiction to booze as he's afraid of embarrassing his...
Read more on Celebrity Balla
 
Kate Hudson has 'unconventional' life
Kate Hudson thinks she has an ''unconventional'' life. The actress insists her life is far from normal but she tries to make sure her children, Ryder, 10, whom she has with ex-husband Chris Robinson, and Bingham, three...
Read more on Celebrity Balla
 
Snoop Dogg smoked cannabis at White House
Snoop Dogg smoked cannabis at the White House. The 42-year-old rapper - whose real name is Calvin Cordozar Broadus Jr. - admits he once puffed on marijuana in the bathroom at the official residence of president Barack...
Read more on Celebrity Balla
 
Iceland donates humanitarian relief funds to Palestinians
Rekjavik, July 23 (IANS) Icelan's Foreign Minister Gunnar Bragi Sveinsson announced here Tuesday that his country will donate $104,000 to the Palestinians suffering from the humanitarian crisis in Gaza. The funds will...
Read more on Politics Balla