Why Use Independent Contractors for Your Design Business?

You shouldn’t substitute the use of independent contractors for the sweat equity that’s required to launch your business. There will come a point though, when it makes economic sense to outsource some of the tasks you take on in your business. If you have so much client work that you find yourself neglecting some of your clients or important business tasks, then you should consider outsourcing.

Avoid the Legalities of Hiring Employees

Be prepared to jump through a lot of legal hoops if you hire part-time or full time employees. Whether it’s keeping up with the tax requirements, paying for health benefits, or following laws and regulations for treating employees, you’ll soon find out that taking on employees is a huge responsibility. You could end up losing or making less money in the process. You don’t face those challenges when you work with independent contractors. They are responsible for paying their own taxes, acquiring their own benefits and you are not subject to employment laws. The one requirement that is imposed on you is to report their annual income on Form 1099 to the Internal Revenue Service once it reaches a certain amount, and provide them with a copy of it. You also have to make sure that you’re not treating them as an employee. It’s important to sign an independent contract agreement with them, but also follow the guidelines provided by the IRS in Publication 1779 (http://www.irs.gov/pub/irs-pdf/p1779.pdf).

Bill More Hours

Whether you charge a flat fee or by the hour, independent contractors can free up your hours so that you can do more work. You can utilize some contractors to work on sales and marketing for your business, so that you can do more web design and graphic work for clients. You can use other graphic artists and web designers as subcontractors to complete some or all aspects of your projects, so that you can get more work. In the beginning stages of your business, it might be better to do all the work yourself and not lose money to independent contractors. The exception to that rule is if you’re working with an independent contractor on a commission basis. For example, a sales independent contractor who is willing to earn a commission for pay is worth hiring from the start.  Once your business starts to grow, the use of independent contractors in order to complete more work is a great move for your business.

Achieve Work-Life Balance

If you can’t get everything done in your business and meet your personal responsibilities at the same time, then you should consider making changes. One change you should consider is delegating work to independent contractors. It sounds simpler in theory than in practice, especially if you’re the type who prefers to retain as much control as possible over your business. The right individual can help free up your time to spend with your family and friends or to pursue your hobbies. If delegating your work scares you, start small. Delegate mundane and routine tasks that you don’t like to do anyway, and test out the idea of outsourcing for a short period. Once you build trust with one independent contractor, you can give them more duties and responsibilities. Before you know it, you may be working with additional independent contractors to help you grow your business.

Before you enter into relationships with independent contractors, you should sign an agreement. It should state in plain English that the person is coming on board as an independent contractor and not as an employee.