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Originally Posted by spirit4711  Yes you can hire employees for that. But why not hire freelancers, contractors, etc? I don't believe it's really necessary to have employees in many cases.
In ICT subcontracting happens a lot, especially for specialized skills.
In building companies you also find many subcontractors down to individual levels. |
I was in business for myself for around 5 yeras. Unfortunately, due to the end of my marriage and a few opther things, I had no choice but to go back to work for someone else. I also needed better health inmsurance that I couldn't get as a self employed individual.
Anyway, on the subject of employees; if your running your business "by the book" and to the letter of the ;law, hiring employees changes everything. There are more taxes to pay, workman's comp, unemployment insurance, etc.
There's also the hassle of your employees problems becoming YOUR problems when they affect work flow, production; cash flow. etc.
I didn't hire anyone. I had two partners and when we needed extra help, I hired friends relatives only as long as I needed them; and on a 10-99 basis. Their taxes were their responsibility. I also paid them very well; so they always wanted to work for me.
My theory is, if you pay peanuts; don't be surprised when you have monkeys working for you. Plus, I don't believe it's right to pay people less than they're worth. It's an insult as far as I'm concerned.
But; employees are a real game changer. I kept my business as small and efficient as possible with minimal overhead; which resulted in an extremely high profit margin. I believe that if you can't make good money then there's no point in being self employed.
I can also say that being self employed can be very hard work, and ultimately, you DO still have a boss; your customers. You have to answer to them and you have to keep them happy or they'll just as easily go elsewhere.
That still beats working to make someone else rich though. I'm trying to figure out a new business to start right now. My cash flow isn't too good right now (I had a 6 month layoff and got way behind on my bills for a while) so I have to figure out something I can start on a shoestring. I just haven't quite decided what I want to do; but when I do, I want to make a move back into self employment. Once I figure out what I want to do and have a workable plan; I'll jump right back into self employment; and I can't wait to do it.
It was tough going back to work for someone else after being self employed too. It's never the same once you've taken that leap and for me, I don't believe that I'll ever be happy working for someone els anymore. I mean, it pays the bills, but I can't say that I like spending my time to fulfill someone else's plans and dreams while mine get pushed aside. It's not a very good way to live IMO; especially now that I've worked for myself. There's just no comparison.