AV companies face more challenges than ever before to keep their overhead costs in check. On the one hand, the AV industry’s outlook shines bright with its value estimated to soar over $230 billion by 2022. On the other hand, the companies that want to earn their cut of the wealth are dealing with ever-more sophisticated and expensive technology. The consequence of such a situation is that every failed contract costs your company much more, both in financial resources and reputation.
We’ve gathered seven tips that will help you balance your books and keep your company thriving.
If you want to minimize the chances of hiring unqualified technicians for your AV projects, try making your recruitment strategy more industry-focused. Instead of spreading your HR department’s resources thin on multiple job boards, zero in on an AV freelance platform.
“Well, that’s all fine when I can get to the AV talent first before the hundreds of other AV companies in the market do,” you might be thinking. What if the pool has been overfished, so to speak? It’s a simpler answer than you might think: hire internationally.
When you hire for an international market, you reduce your overhead costs in two key ways:
Reducing your costs is as much about hiring best practices as it is about management best practices. Consider requesting multiple quotes for your projects as a way to build a fair infrastructure that serves the financial goals of both your company and freelancers.
Receiving multiple quotes means it’s easier for you to negotiate a work contract price that will satisfy your clients’ demanding budgets and keep your freelancers well paid.
This tip works in conjunction with the previous one. When you pay your freelancers a fixed price on a project-to-project basis, it’s easier for you to predict your budget and keep project terms stable and clear for your clients as well.
There are as many advantages as there are disadvantages to this practice if you rely solely on this tip, however. The AV market is constantly evolving, and prices for equipment and client expectations fluctuate regularly. Make sure you have negotiated payment terms that work for all parties involved, and you’ll be covered for any unexpected changes.
Ongoing communication is critical for reducing AV companies’ overhead costs. Ongoing communication throughout a project keeps milestone schedules on track and prevents misunderstandings that could lead to expensive mistakes in system installations.
Ongoing communication also encourages trusting relationships between you and your freelancers. The result is a boost to your reputation as a great company to work for and an expanded network. Communication is made easy on AV-specific freelance platforms, which include a centralized centre for reporting, receiving updates, and discussing project proceedings.
As just mentioned, you’ll want to keep your project’s milestones on track. Otherwise, you’ll risk scope creep and negligent or incompetent work.
You need a work order contract for every freelancer hired on for your projects. The time you spend on this crucial paperwork upfront will save resources in the long run.
Your company has enough on its hands trying to juggle multiple high-stakes projects at once. Encourage your freelancers to invoice on time, so you can pay them on time. This avoids all sorts of costly legalities and prevents inflated invoicing from less trustworthy freelancers.
Your overhead costs are directly tied to your company’s survival. Use these tips and watch your overhead shrink and your company grow.