The cost of things

Well it's that time of the year when I have to fill out applications for E&O and GL renewals.

The good news is revenues are down for 2011 so the premiums will be a lot less. More good news is that I have gotten rid of a lot of equipment that is collecting dust and the price of replacements has dropped as well.

I did some checking and yes what I said is true. Equipment is a lot cheaper now. I was pleasantly surprised by this fact. So much so I got to drop the replacement cost &100,000.

This should be a great year for premiums which will make things easier while business picks back up. Next year will be a much different deal, but go 2012 rates.

I spend a lot of time trying to cut costs for my company. I search for better phone deals, better premiums, I find the best places for fuel (Scottsdale is not one). Essentially I cut cost wherever I can.

I recently renewed my plan with TMobile, by doing so I saved $125.00 on my monthly bill and ended up with a much better plan. I also switched my office lines to Vonage and clipped another $30.00 off of my bill.

I am in the process of moving offices because the neighbors want to take over the entire upper floor and sign a 3 year lease. I found a spot that is bigger, $25.00 a month cheaper and I am month to month. How much better does that get? Did I mention closure to home therefore I will save on fuel.

All of these little things add up. At the end of the day it increases my bottom line and makes for a much happier surveyor.

Why should I spend my life working to pay someone else when I should be getting paid?

As the year progresses I intend to hire 2-3 employees. The forecast looks great and I am going to go for it.

The dilemma I am having is what kind of a package should I offer? Should I bring them in as employees or contract labor? The office people are absolutely contract, but the field people have to be employees because of workers comp issues. Do I offer the field people health insurance? That is a good question. Do I pay them less and insure or let them deal with it?

Employees in any business is the largest expense.

I am an employer that believes in paying for full benefits, contributing 6% to their 401k and giving large bonuses.

Business has become a lot different today and anyone that is a survivor will approach things with extreme caution.

I think when it comes to employees I will start very lean, see how things progress and then expand the benefits.

In a nut shell boys and girls 2012 is going to be a good year. I believe that a recovery in our profession is here. All of the bad employees have moved on, people are hiring and the cash is starting to flow.

We all now have a chance to staff up with quality people and really crank out some good work. For the first time ever I can be choosy about the bodies and I intend to build a dream team of talent.