Part 10 in Our Series on Starting a Business

Getting the help you need

Running a business can be compared to keeping a house; there are many things that need to be done, and often they exceed the skills, the time, or the desire of the owner to do them.  A homeowner may be able to paint their house, but may determine it is worth it to pay someone else to do the job.  Similarly, a business owner may feel his or her time is better spent designing or improving their product or service rather than doing the bookkeeping, researching insurance options, or updating the website.

Almost every entrepreneur needs at least one outside professional to help with the needs of the business.  Most often an accountant or a lawyer is contracted on a consultant basis because a business only needs their services once in awhile.  But these days you can hire almost any position on a consultant basis, and many businesses do.

Consultants can process payroll, handle printing and copying needs, find the best places for the business to advertise, design and set up tradeshow displays – the possibilities are endless. You can even hire a Virtual Assistant!

The benefits of hiring out just what you need are many:

·        Though you may pay more per hour for a consultant, you are paying for just the services you need

·         You don’t have to pay for or administrate employee benefits

·         Professional consultants are experts in their field

·         You simply can’t do everything yourself!

If you are not in the position to hire an employee for each service you need, consider looking for external help and hire consultants with the specific expertise to get the job you need done, and done well.

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Kim Luedke is Co-owner of ProfessionalEdge Associates, offering a wide range of marketing and support services to businesses that want to increase their success, but aren't in a position to add to their staff.

Part 9 of Our Series on Starting a Business

Employees and All that they Bring

At some point in your business journey you may find that you need more hands.  The decision to hire employees should not be taken lightly.  Though employees can be the lifeblood of the business, they bring with them many responsibilities. 

First let’s distinguish between employees and independent contractors.  Employees work for the business, in most cases exclusively.  Businesses typically provide the tools and systems the employee uses.  Employees often get benefits ranging from vacation and personal leave to health insurance and pensions.  Independent contractors work for themselves, usually in their own space with their own equipment.  Contractors do not get benefits from the business, and they typically work for more than one business.  One of the main distinguishing characteristics between employees and independent contractors is that a business must pay taxes for each employee, and not for contractors.

There are many considerations a business owner must address when deciding to hire employees.  Here are just some of them:

·        How (hourly, salary, commission) and how much to pay the employee

·        Employee benefits (vacation, holidays, health or other insurance, pension, etc.)

·        Where the employee will perform their job

·        Training

·        Required taxes and reporting

·        State and federal safety laws; worker’s compensation

·        Setting expectations, performance reviews, disciplinary action if necessary

After considering all of the requirements and your particular situation, decide whether it will be best to hire employees, contractors, or both to fulfill your business needs.

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Kim Luedke is Co-owner of ProfessionalEdge Associates, offering a wide range of marketing and support services to businesses that want to increase their success, but aren't in a position to add to their staff.