11 Feb Outsource To Stay Competitive
Saving California’s Businesses
This video below warns of California’s business struggles. You’ll recognize how difficult it’s become for small to medium sized businesses to survive in the state.
Made in Space joins McKesson and Charles Schwab as the latest companies to move their headquarters to lower-cost regions of the country — Caltax.org
The root cause is the cost of doing business here and anti-business sentiment in government. And then there is the taxes, business rent, utilities, shortage of qualified staff with expertise, long commutes to work, and resistance to building more housing.
SMB business owners in the Golden State face a mountainous climb to profitability in the next 5 years as housing prices and office rents climb. You should act now to save your business.
Oakland Raiders Officially Move to Las Vegas. In a January 22 announcement, the Oakland Raiders football team officially changed its name to the Las Vegas Raiders, approximately two months ahead of the original timeline.— Caltax.org report.
A State Geared to Mega Monopolies
The digital monopolies of Facebook, Google, and other corporations hide the reality that this state has really turned on small business. Even the tech startups that cling to the monopolies are heading to Austin, Dallas, Charlotte, Nashville, Portland, Phoenix and other pro-business cities.
California’s small to medium sized companies aren’t in the same privileged class. And even when Facebook and Google are broken up, California SMBs will face strong headwinds in the next 5 years.
The solution for your California business is to go virtual by hiring the best service providers from less expensive regions. Those in Canada offer additional savings because the US dollar goes 33% further there. That can be the number one cost reduction factor. And cities such as Toronto and Montreal are the Silicon Valleys of the north with highly skilled talent.
The Business Exodus Makes California Much Less Competitive
When skilled people and businesses leave, it raises costs and taxes for those who remain. Skilled talent becomes unavailable and local hiring makes little sense to begin with. Despite the exodus, the cost of doing business in California has not dropped. And income taxes remain the highest in the nation.
The consensus is that companies from San Diego, Los Angeles, and even the Bay Area are leaving primarily for Texas, with Oregon, Nevada, Tennessee, and Arizona as secondary destinations. The tax situation is much better in these states and employee housing is more available. Texas has no state or corporate tax. Some of these cities are actively pro-business with no apologies.
“According to a new study by Spectrum Local Solutions, companies are leaving California due to its “difficult business climate,” which only continues to worsen. The study claims that 660 different California-based companies have already moved their more than 765 facilities to other states. And that’s only in 2018 and 2019…” — Report from iheartradio.
A CNBC report stated that 190,000 people left California last year, the highest since the last recession. Some of this had to be the result of job opportunities elsewhere improving under the Trump Administration. The US economy has changed, grown, while the Asian economy is in decline. This will continue.
Finding Solutions in a Stalemate Environment
With any kind of housing or office space being at a premium, it creates a terrible drag on California company’s competitiveness. It’s too easy to get negative and waste time and energy in resignation. Instead, a focus on new solutions can take all the worry away.
And why else would business owners want to sacrifice the beauty and livability of California for hostile hot or cold climates elsewhere?
Abandoning California isn’t the answer even if the government is anti-business. The state governments can get bounced. California business owners have always been more confident, innovative, imaginative, and courageous than anywhere else. It should stay that way.
Workers on the other hand, might want to leave. And they are, onto new lives in Phoenix, Las Vegas, Nashville, Austin, Houston, Dallas, Portland, and even Denver. It’s too expensive to live in California, even inland, and the stress of semi-homelessness and poverty takes its toll on resident’s health. Businesses can’t do anything about the lack of high quality employees. You must find them elsewhere and run a new kind of business.
My California clients are doing it, and so can you.
Reaching Out to Allies
What can California firms do to raise their productivity, innovation, and revenue while cutting costs? The solutions aren’t all that complicated.
5 Steps to Regaining Your Business Leadership
1. Outsourcing to experts in other cities is key. It reduces your real estate footprint and avoids employment laws in CA. Outsourcing those functions where possible keeps costs down while leveraging impressive updated skills and expertise needed to create market leadership. Many skills and expertise are not available in California.
You’ve been paying high taxes so why would you feel guilty about outsourcing? This is California’s path to profitability so you can continue paying those high taxes.
Hiring Consultants in Canada Eh!
When my clients in San Diego, Los Angeles, and San Francisco called me, I knew they were on board with the value of leveraging skilled people. Quality plus cost savings is what drove them. They were looking for multiple talents with potential to evolve new services including social media, outreach, and help their companies grow in new ways.
2. Hiring a Canadian who has experienced California, and understands its businesses seemed a no brainer. Of course, it doesn’t zero cost. The money you save can be funneled into more paid marketing, outreach, and content development for instance. Investing money into digital marketing is wise when your audience is beyond your city boundaries. With AI marketing software entering the picture, the Canadian connection makes too much sense.
3. Market Expansion. Expanding exports to markets outside of California helps grow potential sales revenue. Consumers are friendly to California products. Expanding your presence in Canada is very wise and easy. It’s the same size as California in population. The UK and Australia are additional markets with low barriers to entry.
4. Go Virtual with Staff. Choosing mobile employees or contractors can lower their own costs so can then accept lower salaries/fees. Working with remote workers keeps relationships fresh, free from office politics and over-familiarity, and reminds Californians of how special they are to those outside the state.
5. Adopting Artificial Intelligence Solutions. When you’re ready, AI software can add value in many areas of your business. AI marketing software not only gives you automation savings, but also optimizes your lead conversion. This makes it more likely that you can export to markets across the US and Canada (previously a challenge to enter those markets).
Technology and outsourcing are the solution. You’re shedding costs while ramping up performance at the same time.
Limited California Service Providers Have High Costs
There are 10 times as many businesses and agencies outside of California to serve you. Yes, those in New York, Boston, Miami, Seattle, Phoenix, Las Vegas, Dallas, Denver and Houston have high costs too. But outside of those locales, you can find the level of skilled services you need from IT and app development, to accounting, to SEO and marketing services.
Look for a marketing agency or consultant with expertise in critically important tasks and relaunch your business with a new attitude. Remember, they don’t know how bad California has gotten with its political struggles. And they don’t have to know!
The Quest for Skilled Experts
Avoid hiring a local San Diego Marketing Agency. Mediocre talent won’t help you compete well enough. Save your budget, and consider a skilled Canadian consultant who can offer more at a high quality level. Outsourcing to the Philippines and India are still options, but they’re on the other side of the world and they don’t speak english well.
Quality content development, expert SEO strategy, and compelling social media reach combined with some paid promotion will help you move to market leadership. Add on AI marketing software and you’re on the leading edge of the wave.
No better way for a California company to disregard the unfriendly business climate in your state. See my advanced SEO services to help you get started.
AI Marketers provides unique content, SEO, social media, PPC, and funnel optimization services for software companies, manufacturers, hotels, recruiters, moving companies, publishers, mountain bike manufacturers, sports equipment retailers, building supplies companies, window and door companies, Realtors, investment companies, IT companies, clean energy, consumer products, branding consultants and many more.
Begin your market leader journey with a digital marketing performance review.
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