{"version":"1.0","provider_name":"crowdspring Blog","provider_url":"https:\/\/www.crowdspring.com\/blog","author_name":"Mike","author_url":"https:\/\/www.crowdspring.com\/blog\/author\/mike\/","title":"Lean Business: Capacity Management, Overhead, and Your Business - crowdspring Blog","type":"rich","width":600,"height":338,"html":"<blockquote class=\"wp-embedded-content\" data-secret=\"9EiEXvu7dE\"><a href=\"https:\/\/www.crowdspring.com\/blog\/lean-business-capacity-management-overhead-and-your-business\/\">Lean Business: Capacity Management, Overhead, and Your Business<\/a><\/blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https:\/\/www.crowdspring.com\/blog\/lean-business-capacity-management-overhead-and-your-business\/embed\/#?secret=9EiEXvu7dE\" width=\"600\" height=\"338\" title=\"&#8220;Lean Business: Capacity Management, Overhead, and Your Business&#8221; &#8212; crowdspring Blog\" data-secret=\"9EiEXvu7dE\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"><\/iframe><script type=\"text\/javascript\">\n\/* <![CDATA[ *\/\n\/*! This file is auto-generated *\/\n!function(d,l){\"use strict\";l.querySelector&&d.addEventListener&&\"undefined\"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!\/[^a-zA-Z0-9]\/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret=\"'+t.secret+'\"]'),o=l.querySelectorAll('blockquote[data-secret=\"'+t.secret+'\"]'),c=new RegExp(\"^https?:$\",\"i\"),i=0;i<o.length;i++)o[i].style.display=\"none\";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute(\"style\"),\"height\"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):\"link\"===t.message&&(r=new URL(s.getAttribute(\"src\")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener(\"message\",d.wp.receiveEmbedMessage,!1),l.addEventListener(\"DOMContentLoaded\",function(){for(var e,t,s=l.querySelectorAll(\"iframe.wp-embedded-content\"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute(\"data-secret\"))||(t=Math.random().toString(36).substring(2,12),e.src+=\"#?secret=\"+t,e.setAttribute(\"data-secret\",t)),e.contentWindow.postMessage({message:\"ready\",secret:t},\"*\")},!1)))}(window,document);\n\/\/# sourceURL=https:\/\/www.crowdspring.com\/blog\/wp-includes\/js\/wp-embed.min.js\n\/* ]]> *\/\n<\/script>\n","thumbnail_url":"https:\/\/images.crowdspring.com\/blog\/wp-content\/uploads\/2016\/10\/10110420\/535254_10150672709298795_1440768301_n.jpg","thumbnail_width":400,"thumbnail_height":400,"description":"Many smaller companies that provide creative services struggle daily to manage their capacity and overhead. Because business is cyclical, as in many other industries, these smaller agencies, design shops, and marketing firms tend to experience boom\/bust cycles throughout the year. In the creative industries, this is an everyday fact of business: overhead is constant, but revenue ebbs and flows throughout the year. Some months, there are so many clients and so much business that these service providers are forced to hire contractors or freelancers to handle the extra workload. In other months, when business is slow, managers are left trying to keep their employees occupied and struggle to balance the books. The human capacity that a firm employs is an asset as well as a detriment to doing business. A solid and talented team allows a business to grow, develop core skills, and provide consistently high-quality client services. However, that same base of employees also represents expenses in the form of overhead: salaries and benefits, as well as capital expenditure in the form of computers, software, telephones, desks, and chairs for each worker. Plus, best practices for office space require around 200 square feet of rentable space for every person on your team. The trick is to find the right equilibrium for your company and to leverage HR automation when possible. First, do the math: if you assume that a full-time worker is making a modest $40,000 average salary and your office rent is $20\/sf annually, a quick back-of-the-napkin calculation takes you to an annual cost of over $54,000, or around $4,500 per month per FTE. So a company with a team of 5 full-time employees would expect those 5 to represent a total monthly expense of around $22,500. Of course, if this were your company, that would be in addition to your meager salary and benefits, not to mention all of the myriad other fixed expenses your business incurs. Once you add these up, it is not a huge stretch to assume monthly overhead for a company of this size and shape at around $30,000 per month. That&#8217;s a big nut to cover for many small creative service firms, especially during the slower months of the year. So, how can that 5-employee company manage its human resources to maximize capacity while reducing overhead? By using a mix of FTEs, appropriate tools for internal communications, and strategically using freelancers and contractors, many firms can expand, contract, and manage team workload in sync with their needs. This is not a new or novel concept \u2013 for instance, many small companies contract with a part-time bookkeeper who might work 10-20 hours per month and is paid only for the hours she works, with no other expenses associated with her work for the company. Creative service companies are well-versed in hiring freelancers when the workload requires it. Many outsource work to specific vendors and contractors, particularly those whose expertise is not core to the services offered. With the help of contractor management software,.."}