As your business grows, you'll eventually need other people to do work for you. Instead of hiring employees, you might consider finding contractors to outsource your work to. This will not only save you money, it has a lot of other benefits as well.
When you hire your own employees, you have to pay a lot more than just their salary. Employers have to pay employee benefits like health and accident insurance, paid vacation, social security, and other additional expenses. While most of these are small costs, over time they add up to quite a bit of money out of your pocket. If you hire contractors instead of employees, they pay for their own benefits, so you don't have to worry about the expenses. The only downside is that, because they incur these expenses themselves, they generally add these expenses into their fees.
Another financial benefit to hiring contractors is that you only pay them when they work, and they only work when you have business, and therefore profits. If you lose a client or have less work to go around, you can simply stop using a contractor. If someone is your employee, you either have to pay them even though they don't have work to do, or lay them off, which is a financial drain as well.
Contracting out work decreases your overhead costs in addition to not having to pay salaries. Keeping employees also requires you to have a place for them to work. This includes the costs of owning or renting space, computers and other equipment for them to work on, office supplies, bathrooms, and a whole slew of other things required to run an office, all of which cost you money. You can avoid all these costs when you hire out work; however, remember that contractors factor this into their charges. At the same time, you avoid these costs altogether when work is slow.
A cost comparison for a full-time employee versus a Virtual Assistant
*Your employee's 8 hour day can be crunched into 3-4 hours with a Virtual Assistant.
= $60,160.00 per year
*Souce: Virtual Assistant Networking Association Cost Comparison
The Largest Global Network Online for Successful and Aspiring Virtual Assistants
By hiring a Virtual Assistant...
You SAVE over $60,000.00 per year!
Although the Virtual Assistant's hourly rate is more than the employee's rate in the first place, you save the cost of benefits and overhead that would have to be applied to the new employee's wage. And, because Virtual Assistant's are usually more experienced, more efficient, and better connected than the employee, you'll need to devote far less time to the project to get the same results, only 480 hours a year versus 2,080 for the new employee.
Outsourcing can be a great way to expand your workforce without breaking the bank.
**Remember, with The EA Group, you only pay for the time on task by the minute! No more paying for socializing, hour long lunches or frequent trips to the washroom.