Consultants and contractors make good business sense

Your Team Players.  Your team is important, and having the right people in place is critical!  Just because you have had an employee for ten years doesn’t make them a dedicated and loyal employee.  People can become comfortable and lazy.  Ensure that everyone is working towards the same common goal, and contributing towards your business success.   There should be a motivational relationship between your business success, and the rewards/success of each team player.  However, it’s impossible to be responsible for all of the motivation behind each team member.  A good portion of motivation just comes from respect, and wanting to do a good job for the pay.  

Consultants and Contractors.  The next question is, “should you hire or contract out for services?”  There are a ton of advantages to hiring a professional contractor or consultant.

·         Reduce overhead. Reducing expenses is a real attraction to hiring an independent contractor or consultant.  Lower overhead means less stress to cover costs.  New business can go right into your wallet and ensure the future success of your company.

·         No health benefits are necessary.  According to the EBRI, employers traditionally spend just over 29 percent on employee benefits.  In 2010, the average total cost to employers for employee benefits was around $10 per hour for each employee, or about 30 percent of total compensation.  Source:  The U.S. Bureau of Labor Statistics Due to health care reform, these costs are expected to increase.  

·         Cost control.  With more employees, your office will probably have to move to a bigger space, sign a lease, and purchase more equipment.  Contract out and save yourself some money.  You’ll also have the ability to take on opportunities as they arise.  During seasonal or slow periods, easily scale back on spending. 

·         Highly specialized.  Many consultants and contractors come trained and highly specialized, giving your company a leading edge towards greater profitability.  No successful business works in a vacuum.  Hiring an independent consultant or contractor offers flexibility to the changing work demands of your company, as well as the changing demands of the marketplace.  Avoid juggling multiple contractors, find one or two that you can depend on to meet project goals and grow with your company.

·         Require less management.  As your employee numbers grown, you become less involved in practicing your trade and more involved in people management issues.  You have to worry about worker-related lawsuits and putting out fires on a daily basis.  Self-employed independents and contractors should require less management due to the fact that they are more motivated and accountable.

·         Well-networked and well-informed. Many consultants and contractors are members of local business groups, and are typically well-informed.  In order to remain relevant, they have to stay on top of trends, continue training and connect with other professionals in their local communities.  In time, an experienced consultant or contractor can have access to a huge network of professional services and experts in a variety of platforms.