Bringing More Work in House

It is time to bring more work into your small business in order to increase streams of revenue. Whether this is something you will accomplish by taking on more clients or by offering a different type of service or product line, it could mean there will be a need for additional business liability insurance. But, before reviewing your insurance, first do some planning to get an idea of what this additional work will bring to your business.

If the amount of work expected to be taken on winds up making it difficult for your existing employees to handle on their own, it may necessitate hiring additional workers. If this is the case, the money the additional work is expected to bring must be enough to cover any additional expenses it causes your company to incur. This may not be difficult to calculate, especially if an additional product is being added to your existing company line.

If you have decided to bring in more work by way of creating a new product, you may have already noticed a demand for it from requests by existing clients. Its addition should make for happier customers who will frequent your business and make even more purchases than before. Ideally, the expenses invested in the new product will be well worthwhile and may provide additional company fringe benefits in the long run.

Calculating new Expenses and Costs

The main concern for any extra overhead associated with taking on more work will be over insurance. As in the example above, the new product line would possibly need its own insurance coverage to protect your business against any liabilities associated with a consumer utilizing the product. The same would go if more work means you need to hire more employees.

The worker's compensation coverage would need to be increased to an appropriate limit for the new hires. While bringing more work into your company is intended to bring in much more revenue, keep in mind that any expenses associated with the work need to be factored into plans for taking that work on. Bringing the extra work in may involve a need for raising prices for your existing services or products.

You will want to find out how your clients and customers feel about paying more due to your increase in costs. A brief survey or other marketing method might be quite revealing where this is concerned. Be sure to get research like this done while developing your expansion plans. It does make sense to get an idea of what your existing client base has to say about paying more, if necessary, for services they have come to depend on your company to provide to them with.

You will not want to out price your clients or customers. Otherwise, you could lose them as a result of needing to increase prices in order to continue operating at a profit. Yet, as long as the plans you make for taking on more work reflect the understanding of how this additional work will possibly create additional overhead, you should be able to bring the extra work in with no problems at all.

Covering New Liabilities

Bear in mind how important it is to review your business liability coverage at this time. Bringing more work in house will hopefully result in plenty of revenue to keep your company thriving. It will also hopefully please all of your clients and customers who will benefit by the additional service or product provided. But it will create changes that will affect the amount of coverage you need to carry in order to keep the added work from becoming something of a costly liability rather than a true financial asset.

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