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How to Use A Sub-contractor to Save Money and Build Business

By William Burley

Managing the sometimes drastic changes of both increasing and decreasing work flow can be a challenge for any small business owner.  One way to expertly navigate the changes is to partner with a sub-contractor, independent contractor, freelancer or virtual assistant.  Doing so will allow you to ensure that you have an experienced worker to handle your priorities without creating a sharp increase in overhead costs. Many entrepreneurs have never considered the smart business decision of working with a freelance virtual assistant.  This can make the process of choosing the correct independent contractor a chore in itself.  Below are considerations that will help any small business owner make a better choice for their particular needs.

  1. How much money will you save?
    To hire a permanent employee, a small business owner can spend approximately 25% more than it would cost to work with a sub-contractor to perform the same tasks. This percentage mainly consists of what an employer pays:  Social Security, Medicare, workers’ compensation insurance, liability insurance, and other coverage and taxes. The average costs of working with an independent contractor ranges from $20 - $40 per hour worked, dependent upon the type of work and any specialized training required to perform the tasks.  The contractor can perform duties including accounting/bookkeeping, creating or proofing PowerPoint presentations or managing your customer service support mechanisms.
  2. Specialized training can help.
    Partnering with a remote assistant can assist a small business owner better meet the needs of the customer.  A contractor with specialties in certain fields can perform the tasks more efficiently, saving the business owner more and creating an atmosphere of increased profits while any employees focus upon their talents.
  3. Startup costs make it difficult to hire a permanent employee.
    An independent contractor can manage your operations, market your product or service and assist in building a better customer relationship model than if the entrepreneur was performing all the tasks alone. Freelancers may also be a needed support for any busy seasons your company may encounter throughout the year.

Some factors to objectively consider when making the decision whether the small business should outsource work:

  • The Money
    What are the real costs of hiring a permanent employee to perform tasks or doing it yourself opposed to having an independent contractor perform the work.  There are immediate costs which include recruitment, training, office equipment, and more. Long term costs include payroll and benefits taxes.

  • Skills and Time
    You must determine whether you have the real time to recruit, train and manage a permanent employee or would it benefit you to immediately access the skill set of an independent contractor or virtual assistant. There are many benefits to partnering with a sub-contractor.  Take a moment to objectively assess the best move for your small business.

William Burley is the founder and owner of Burley-Wilson & Associates, a virtual assistant and virtual paralegal services firm. Contact William at
info@burley-wilson.com or visit www.burley-wilson.com.

© 2012 Burley--Wilson & Associates. All rights reserved.