As a small business owner, wouldn’t it be awesome if you could:

• Expand your team, with bench strength to spare
• Accomplish key tasks, faster
• Stay competitive – and profitable

…all without the hassle, expense, and risks associated with hiring?

You can! Consider an independent contractor.

In the era of quiet quitting, quiet layoffs and a whole lot of other shake-ups to business-as-usual, more entrepreneurs and small business owners are turning to independent contractors to help meet their needs.

In this article, we’ll explore some of the many advantages of utilizing contractors.

But first…

What is an Independent Contractor?

Independent Contractors are self-employed. According to the IRS, “The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.”

They generally use their own equipment/tools and submit invoices to you for payment. An independent contractor earning income through their work is subject to self-employment tax. In contrast, if there is an employer-employee relationship, the person is not an independent contractor – and earnings are not subject to SE tax.

Further, the IRS explains that someone is not an independent contractor if they “perform services that can be controlled by an employer (what will be done and how it will be done).” And this applies even if the person is given freedom of action. “What matters is that the employer has the legal right to control the details of how the services are performed.”

4 Top Benefits of Independent Contractors

1. Save more money with independent contractors versus hiring a regular employee.

One of the top advantages is the potential cost savings to you. Since you typically pay contractors more than employees, you might be wondering where the savings comes from.

First and foremost, you are not responsible for providing expensive benefits such as:

• Health insurance
• PTO (paid time off)
• Retirement plans
• Reimbursements & other benefits

Next, you don’t have to pay employment taxes such as:

• State Tax
• Federal Tax
• Social Security
• Workers’ Comp
• Disability (required in some states)

These taxes and benefits alone can easily add 30% to what you pay an employee.

And finally, you save by not having to pay for:

• Equipment – phones, computers, desks, etc.
• Office space, including all the utilities
• Specialty software
• Training
• Down time

All this can quickly add up and have significant impacts to your bottom line.

For example, consider contracting with a graphic designer. For the more popular graphic design programs, product licensing alone will cost you at least $500 – and that’s before you even learn how to use them. A graphic designer is equipped with their own access to these programs, plus the knowledge, experience, and equipment to use them. Utilizing a contracted graphic designer saves business owners thousands of dollars just in licensing, equipment, and training. Plus, they get an expert that specializes in the task at hand.

2. Enjoy flexibility to accommodate your unique business needs.

Another benefit to independent contractors is the flexibility they can offer your business. Since they often work on a project basis, you have the option of utilizing someone to accomplish strategic tasks within a specific timeframe.

The flexibility of working with an independent contractor is particularly beneficial if:

• Your business has fluctuating workloads
• You’re in a season of uncertainty
• You’re testing the waters on a new service or offering
• You’re expanding or contracting your business
• You have decided to take on a temporary assigment

With an independent contractor, you can easily scale your workforce up or down as your needs shift and change – all without the commitment of a long-term employment contract.

3. Leverage an independent contractor’s specialized skillset & professional expertise.

Independent contractors often have specific skills and expertise in their field – and you can benefit from their experience. Maybe your project requires specific know-how. Or you need a task done that falls outside the scope of your (or your employees’) skill set. By working with an independent contractor, you can tap into their knowledge and benefit from their experience.

Not only that, but the person you hire might be able to add a fresh perspective or a new take – just what your business needs to gain that competitive edge…

4. More Productivity = More Time for You

Expanding your team can greatly enhance your productivity – and that means more time for you to focus on what you do best. You know, things like growing your business 😊

With a contractor, efficiency often gets a boost because they aren’t tied up with the day-to-day grind like a regular employee. Meaning, a contractor can give all their attention to the specific task(s) they were hired to do.

Another bonus is that when searching for a contractor, you’ll often find a wide pool of talent to choose from. You can be pretty certain that if your first choice doesn’t work out for whatever reason, there are many other talented professionals to team up with instead.

Should You Hire an Employee – or an Independent Contractor?

There is no single right answer to that question, because each business is different. If you’re a coach or consultant, for instance, here are common tasks/projects you might choose to utilize an independent contractor for:

• Web design
• Online course creation
• Social media support
• Content writing
• Graphic design
• Project management

Coaches want to know the answer to this question…

What’s it like to work with a contractor? Glad you asked! Here’s our quick Marketecs Getting Started guide to give you an idea. It’s pretty simple:

1. Start with a consult.
2. Chat with our Founder, Kathrine.
3. Agree to terms with a contract.
4. Meet your support team.
5. Accomplish your goals!

Marketecs is a blended team of employees and contractors – entrepreneur-minded women who bring the digital marketing expertise that coaches and consultants need to accomplish their visions. Let’s chat about your goals – schedule your free 30-min consultation today.