There comes a time when you have to get some help to take your small business to the next level. You may even need that help in order to get it started in the first place. This section provides some guidance on hiring workings for your new small business.
Some people think that to hire workers they have to pay a salary and deal with issues of payroll, but the truth is that you do not have to hire workers on salary when you’re just starting out. You can hire independent contractors to work on small projects for you as you grow. It is affordable, efficient and you get a chance to see what they can do before hiring them on permanently in the future.
An independent contractor (sometimes called a W-9 worker) is a person or entity who provides services to you to under a contract. That contract can be extended or terminated at any time. The contractor is responsible for paying his own taxes – he is his own business owner. Writers, designers, website professionals, virtual assistants and carpenters commonly work as independent contractors. Elance is a popular site where you can find help from W-9 workers online.
What Is a Virtual Assistant and Do You Need One?
A virtual assistant is someone who helps you out from afar. You assign the person tasks to complete via email or a messenger system, and pay per hour or per assignment. Many college students and administration professionals work as online virtual assistants on the side. This is a great way to get some help when you’re feeling overwhelmed with things to do.
When you get to the point where you have to hire an actual employee or two, there are a few considerations to keep in mind:
– Hiring practices and interviewing
– Following state and fed. laws regarding employees (break times, age, etc)
– Collecting W-4s and other necessary forms from hired employees
– Payroll management
Employer Identification Number
When you do decide to hire workers for your small business, you need an EIN (employer identification number). This allows you to account for workers and pay taxes on their behalf. You also need this number for issuing their W-2s for the year.
More information about getting an EIN here.
There’s one last consideration to keep in mind when you hire employees: employee management. The way you manage your workers will have a direct effect on your company’s productivity and turnover rate (the number of qualified people who decide to leave for greener pastures).
When you’re thinking about how to manage your own employees, take yourself back to the days when you had a boss. Were you treated fairly? How would you have liked to be treated? Respect the golden rule when you start up your own small business and study up on techniques and concepts that will help you become a better boss than your last boss.
If you need to hire workers for your small business, this section will help inform and guide you regarding the process. See the resources below for guidance.