Every major entrepreneur has an army of people behind them, right? So how do you grow your business as a solopreneur while keeping your fixed overheads down?
When I left investment banking to launch my own business, I worked day and night to get it off the ground. However, there just weren’t enough hours in a day. Instead of adding large salary bills to my overheads, I chose the more flexible freelancer route, which allows me to pay for talent and solutions on a per-project basis.
Many business owners have gone this route and crashed and burned, never to dip their toe in the water again. However, if you get it right, using freelancers is an affordable way to access a growing source of talent across the Internet.
Running my business and not having the business run me
My businesses run with 95% of my staff as freelancers. The ability to hire top specialists for a specific piece of work when I want, how I want, is what I need to keep up with the market. It also frees me up to do what I do best, which is interacting with clients and growing my business.
The best part about utilising the freelancer marketplace is that it’s all on demand. You’re busy? Okay, you hire and when business is slower you don’t. No insurance, office space, rent or infrastructure, keeping those fixed overhead costs down and thus growing your bottom line.
The biggest fear I had when starting to outsource was the misuse of financial or confidential information. Fortunately, this is very rare in the market place. If it’s a huge concern, my advice would be to use a freelancer firm rather than a solo operator.
It costs a little more, but if your freelancer is sick, someone else in the team takes over. As an employer, you are protected and you get what you paid for. With fixed-price projects, there are no upfront payments either. You pay upon completion of the job or milestone.
Choosing what to outsource
So what should you outsource? Freelancers possess a wide array of skills, from web design to social media marketing, writing, app development, Internet research — almost anything your business could be in need of.
Time-consuming tasks or simple technical tasks like data input are great starting projects. Do not outsource important things that require your human touch.
Using a firm is also best for regular hourly work across weeks and months, such as virtual PA tasks or regular blogging. If you have once-off projects or small tasks, my preference is a solo operator, for example, someone who you can approach with a brief to ‘create me a banner design for my new marketing email’.
How and where do I start?
1. Eliminate before you delegate
Don’t hire virtual assistants to schedule meetings. It’s a waste of time and money. There are several apps that will integrate with your calendar and your client can use a link to schedule time with you.
2. Per hour isn’t the ultimate cost
If you have to manage an inexperienced freelancer, you have to factor your hourly rate in too. Generally, for small to medium tasks, I use a fixed price for the job, not an hourly rate.
To gauge how much to pay, work out how long the task should take, researching what those skills are per hour on your chosen site.
For bigger projects, use specific milestones. It reassures the freelancer that they will get paid and motivates them to keep working, then check up on their progress.
3. Remote vs. local
I prefer freelancers in India for web work and simple technical work, using local (that is native speaking freelancers) for written, speaking work. Use time zones wisely.
If I need something urgent overnight, the US and India are working while we are sleeping. If you need to brief something in the morning for later that day, find someone in your time zone.
4. The biggest challenge is letting go
I found this incredibly difficult until I was honest with myself: Most of my team are hired for what I do badly, or to complete work to a standard that I can’t. It’s also refreshing to know that while I sleep my team are working during their time zones.
5. Pay attention to your job posting
Make sure your job posting has the project/task overview, timeline, freelancer responsibilities, qualification/skill-set requirements and a clear ultimate goal. Be specific in your communication, especially when hiring overseas with language barriers.
I include questions to make sure I am being understood, such as, ‘tell me what experience you have and why you feel you are a great fit for this project?’ A lot of freelancers have a blanket reply for jobs. When I see one of these I discount them. If they can’t reply relevantly, they aren’t going to complete my job accurately.
6. Interview your freelancers, even if it’s a chat message or a Skype call
I like to make contact with every new freelancer before I award the job. Ask questions like, ‘what projects have you worked on that are similar to mine? Can you send me an example of something similar you have worked on?’
7. Pay attention to client feedback
This is invaluable in hiring the right freelancer. Gone are the days of having to call and check references.
Most sites provide feedback/ratings from other employers; amount of hours worked and percentage of completed jobs. You even have the ability to see the freelancer’s test results for sites that test their workforce skills.
Fine-tuning your off-site workforce
Here are a few dos and don’ts when you hire your first freelancer:
- DO provide an accurate and thorough job description with appropriate pay. Many sites restrict how many jobs freelancers can apply to within a set time period; a vague job description may hinder how applicants bid.
- DO set clear expectations. Make sure your freelancer knows the quality of work expected, deadlines and what will happen if the work does not meet standards or is late.
- DO start small and work up to bigger tasks or projects until you build trust with your freelancers.
- DON’T discredit inexperienced freelancers. Sure, experienced freelancers often carry less risk, but they also carry a higher price tag. If you have the time to properly feel out and interview a newbie, you can usually get great results for a great price.
- DON’T hire someone you don’t feel comfortable with. Some freelancers outsource their work to others. Take the time you need to feel comfortable with whomever you are going to hire and mention that they cannot outsource your work without approval.
- DON’T ask your freelancer to work for free on the first job with the promise of more work in the future. Instead, tell them it’s a trial run between them and a couple of others. If they complete the paid job to your satisfaction they will be rewarded with more work. Pay a fair wage overseas; India and the East range between $6 and $12 (USD) per hour, US/UK costs range from $10 to $25 per hour. You can hire someone for $3 per hour, but evaluate if the low cost affects the output.
Keys To Simplify Payroll Compliance
Human resources departments across the country cite compliance as one of the top challenges they face. As an SME owner, it’s up to you to ensure that your company’s personnel business practices adhere to the current laws.
Keeping accurate records to document your company’s compliance is just the beginning, says Ania Strydom, Compliance Specialist at Sage.
1. Why is payroll compliance so important?
Payroll is the biggest expense for most employers. Employers must comply with all labour and tax laws that govern the payroll to avoid financial and legal risks and to protect the employees and the business. The risks of getting it wrong include:
- Interest or fines by authorities
- Imprisonment in cases of fraud or extreme negligence.
Payroll fraud is one of the most common white-collar crimes in the business world; what’s more, inaccurate payments and non-compliance can cost a business dearly.
2. What are the implications for staff if a company is non-compliant?
The payroll is one of the most crucial links in the employee-employer relationship. Late or inaccurate wage and salary payments, or inaccurate calculations of other earnings (such as overtime), deductions (such as PAYE and UIF), and contributions (such as retirement fund or UIF contributions) can be extremely damaging to the morale of the workforce.
By law, every employee is entitled to a payslip and tax certificate (IRP5/IT3(a)). Employees need payslips for purposes such as applying for personal or home loans. Accurate and easy to understand payslips will boost employee satisfaction and trust in the company, with a positive impact on business performance.
What’s more, employers must make sure UIF contributions are correct so that employees get the full amount they are entitled to if they need to claim.
3. How will the company’s growth prospects be affected if the company is non-compliant?
While an efficient payroll system enhances staff morale and boosts an organisation’s reputation, mistakes in record-keeping and compliance can result in punitive penalties and hurt the company’s brand. Compliance mistakes with payroll can be expensive and potentially catastrophic which subsequently results in business risks.
4. How can a business ensure it is payroll compliant?
South African tax regulations and labour laws are and continue to be more complex. Keeping track of all the payroll legislative requirements can be challenging, but the risks of non-compliance are high and businesses can no longer rely on spreadsheets and other manual methods to do their calculations, report and file returns.
Automated solutions are becoming more essential for keeping reliable records, reporting and performing accurate payroll calculations.
The package you choose should:
- Be tailored for the local tax law, labour law and regulatory environment
- Manage all the complex calculations and regulatory reporting the business must do timeously
- Feature automated updates to ensure the company always processes on the latest software and legislative version.
This will ensure it avoids censure, fines, penalties, interest and/or imprisonment as a result of non-compliance.
Why Your Employees’ Health Is Your SME’s Wealth
Absenteeism costs R16 billion annually, according to Stats SA. That’s a lot more than it costs to sign up for a group offering that is specifically designed for small to medium enterprises.
- Visit: www.fedhealth.co.za
- Call: 0860 002 153
Fedhealth’s Commercial Executive, Michelle Morton explains the importance of group health cover to keep your SME’s pulse strong.
1. Why is it important for a SME to care about the health of its employees?
First, when an employee in a critical role within the SME falls ill, there’s often nobody else to fill the skills void created by his or her absence. This can have a detrimental effect on the daily operations and business output.
Second, offering sound medical aid may attract and retain the right talent to the business.
Third, choosing a medical aid like Fedhealth, which places a big emphasis on preventative health and wellness, can also assist the SME owner in cultivating a healthy culture in the workplace.
2. What should business owners consider when looking for a group medical plan?
Apart from factors like affordability, a good reputation, and ability to pay claims, look for schemes that offer value-added services, such as wellness days where staff can undergo crucial health screenings, and programmes to address specific health issues.
3. What are the top health concerns for today’s workforce?
Back and neck pain are second to headaches when it comes to painful conditions affecting humans — especially office workers, who are often desk-bound for hours on end. Fedhealth offers qualifying members a 12-week Conservative Back and Neck Rehabilitation programme to help correct the problem through exercise and behaviour.
Diabetes and hypertension are also on the rise, while some employees face HIV/Aids, weight issues or struggle to quit smoking. Fedhealth provides assistance for all these diseases and health concerns.
4. How will the employees benefit from working for a company with a great group medical plan?
I believe it makes the business a more attractive place of work for employees, as medical aid is a much-needed benefit and costly if one has to pay for it out of one’s own pocket.
5. Please explain the importance of the SOS Corporate Wellness benefit
The Sisters-on-Site service (SOS Corporate Wellness) is a value-add as it brings basic healthcare to the office. This means that staff can regularly see a qualified nursing sister at their place of work for minor health issues, instead of having to take time off work to visit the doctor or clinic.
Employees build a rapport with the sister, as they see her on a frequent basis. Through the SOS Corporate Wellness benefit, they can also conduct important health screenings that might flag serious health issues of which the employees might be unaware. Sisters-on-Site can also facilitate monthly health themes to raise employee awareness on issues like breast cancer.
Why HR Legislation Compliance Can Curb Business Failure
Don’t let your business reputation get dented due to non-compliance.
Millennium Support Services is designed to afford all business enterprises the opportunity to have Human Capital Management for their business.
“It is just unfortunate that non-compliance is exactly that “non-compliance” and most small businesses reputation gets dented or even fully destroyed, in the event that they are being accused of non-compliance by employees and statutory bodies” says Sharon Tshabalala CEO of MSS.
“Small businesses have no resources yet at the same time are not exempted from compliance. So, through the use of technology we are able to provide easily accessible HR services across the board.”
Millennium Support Services provides businesses with exclusive distinctions of its service, so that you can ensure that your business remains compliant.
Human Resource Policies
The advantage it has over other online HRM systems is that it offers online access to Human Resource policies based on approved legislative framework.
In cases where disciplinary proceedings have to be under taken, an independent chairperson will be made available. When disputes have been escalated to the CCMA, a Labour Relations Expert will represent the employer.
The primary purpose of discipline is to encourage employees to correct their conduct and/or discourage employees from breaching standards of conduct. Depending on the nature of the breach, there are five forms of disciplinary sanctions taken against employees – either formal or informal.
Namely: Verbal Warning, Written Warning, Final Written Warning, Suspension of Salary and finally Dismissal.
The purpose of this policy is to give guidance and to provide a framework on how to raise and deal with grievances effectively at the earliest possible stage. There are three types of Grievance which have an informal/formal procedure.
Namely: Mild Grievance, Serious Grievance and Sensitive Grievance.
4Occupational Help Policy
The purpose of this policy is to establish minimum standards and requirements of occupational health and safety for the corporation in order to reduce the risk by:
- Identifying hazards and possible risks causing incidents and accidents,
- Setting standards of practice, procedures and accountability,
- Measuring performance against standards, Evaluating compliance with standards,
- Correcting deficiencies, deviations, and set standards of procedures to be followed,
- Creating and maintaining a healthy and a safe work environment.
HR management is a specialist field, with many laws and regulations to navigate. If you don’t have a background in this field and can’t afford to hire a full-time HR specialist, consider outsourcing this function.
Millennium Support Services – Human Capital Management made easy.
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