Click the image above to share on Pinterest!
Don’t assume just because your business is growing, it’s time for employees. Hiring contractors is a real option for the right reasons. Check the Top 10 reasons to hire contractors versus employees to see if it fits your business needs.
Work culture has definitely changed over the last decade, even the last couple years, to really jump into hiring contractors when it makes sense.
The last thing you’d want to do is hire employees too soon, then lay them off because your business couldn’t handle the cost. OUCH!
Your business is expanding. Your nights are getting longer because work is never done and you’re on your 10th day of microwave and take-out dinners. You’re feeling the growing pains of needing more hands to do the freakin’ work! I totally get it.
Now the solution: Hire contractors or employees
There's more to consider than a salary if you're thinking of hiring employees. It also means all the pieces that go with it, benefits, taxes, training etc. When you check your monthly cash flow, make sure your eyeballs are on your profit and not just sales in the door. Profit meaning what's left over after you pay all your expenses every month. If you’ve had any months lately that are tight or zero profit, it’s not the time to hire employees.
Reasons to Outsource and Hire Contractors:
- Test whether you have enough work to consistently keep an employee busy
- It’s only a one-time activity requiring specific expertise (e.g. build an app)
- Keep fresh ideas coming from an outside perspective
- Profit, what's in your pocket after expenses, isn’t consistent
- Too many different talents and skills are needed to handle all the tasks
- Need someone who’s already “been there done that” to accelerate your success
- Current industry and trend insights, gems and nuggets of info
- Resources and tools you won’t need to buy
- Experience with other clients to avoid pitfalls
- Objectivity. Gives good counter points and not just your “yes” person
I’m not saying you should never hire an employee. You should consider your business needs, your cash and goals to get the best fit.
You might start with hiring out work to contractors and then move to hiring employees. Change is always an option.