The real question that is hitting people is, "How will this affect my business?" Every phone call I'm on, I try to ask folks how the past month or so has affected their payroll business. For the most part, I have been heartened by the answers I've received.
The typical answer from a mid-sized payroll service goes something like this:
- Sure we're tightening the belt a little, but we are still adding clients
- Yeah, we're losing a few, but mostly businesses that provide non-essential services such as: Nail Salons, Real Estate Agencies (unfortunately, all too non-essential lately!), Day Spas, some Restaurants, etc.
- or, the best answer... nope, we're doing just fine.
What should really get you revved up is watching the ADP & Paychex stock ticker! Now, isn't it sad when your main source of competition (nation wide) lost 10-20% of their value in the last month?
You know that they are hurting, but in addition to that, their service will be suffering because of this. There is nothing like being an employee at a big corporation who was just getting ready to cash in some options before the holidays when the bottom drops out of the market.
I guess we all can look at our portfolios in the same way, which is unfortunate for everyone, but people in call centers get pretty excited about their options, and we all know why folks roll off of ADP or Paychex's service and onto yours... SERVICE.
So, here are a couple of thoughts for the road:
- Make sure that your operation's service shines through this crisis like a lighthouse in the fog of financial despair
- Put together your 5 minute stump speech about how bringing payroll in-house will cost the client more money than it will $ave them. Get pro-active on this - make sure your clients understand this, before they go out and buy some shrink-wrapped payroll crisis-in-a-box
Plug the holes before you need your own little bail-out!