When bootstrapping, having great contractors is critical to increasing margins and lowering overhead.
A thread on how to attract and retain top contractors:
A thread on how to attract and retain top contractors:
Disproportionate spoils to top talent and rising employee costs have contractors and businesses aligned.
The contractor or freelance economy is booming, and has miles of runway ahead.
The contractor or freelance economy is booming, and has miles of runway ahead.
What's driving the trend?
Businesses: rising wages, taxes, real estate and fixed asset costs make hiring full-time employees cost prohibitive.
Contractors: talented individuals are capturing more of the value they create and with more freedom.
Businesses: rising wages, taxes, real estate and fixed asset costs make hiring full-time employees cost prohibitive.
Contractors: talented individuals are capturing more of the value they create and with more freedom.
Why is it valuable?
True employee cost is 1.3X salary and there are other indirect costs that are hard to attribute.
A $100K/year employee costs an additional $2.5K/mo. in taxes and benefits - these hidden costs vanish with contractors.
True employee cost is 1.3X salary and there are other indirect costs that are hard to attribute.
A $100K/year employee costs an additional $2.5K/mo. in taxes and benefits - these hidden costs vanish with contractors.
KPI attribution tools make tracking results straight forward allowing businesses to calc ROI and contractors to ensure they're getting what they're worth - a win/win.
Contractors can service multiple clients to achieve exponential earnings compared to salaried positions.
Contractors can service multiple clients to achieve exponential earnings compared to salaried positions.
The value for both parties is undeniable, but what do contractors care about? How do you get the best to work with you?
Payment Terms - pay quickly, consistently, and do NOT send a physical check. T-15 is appropriate, but fulfill the invoice immediately.
Payment Terms - pay quickly, consistently, and do NOT send a physical check. T-15 is appropriate, but fulfill the invoice immediately.
Consistency - talented contractors value time, meaning they value efficiency. Consistency drives efficiency in communication, deliverables, etc.
Do not email, slack and text - use one channel.
Do not email, slack and text - use one channel.
Communication cadence - the best will not do recurring calls. Use calls on an as needed basis, be productive and to the point.
Hour long zoom calls are exhausting and not necessary.
Hour long zoom calls are exhausting and not necessary.
Deal terms - for a revenue position, give upside for their best work. The talented make more and want it. Red flag if they don't.
Cost savings position? Percentage of savings or profits.
Cost savings position? Percentage of savings or profits.
Eventually, everyone will capitulate to using contractors because the win/win is too advantageous to ignore.
If nurtured and respected the symbiosis is one rarely seen in business.
Margins for everyone!
If nurtured and respected the symbiosis is one rarely seen in business.
Margins for everyone!
Follow me @barrettjoneill for more content on tactical insights on bootstrapping, business building and growth.
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