Posted on: 14 September 2016Share
When you run a single-person business, you have to do it all: make sales calls, collect on invoices, and calm angry clients, among other things. While this is probably the most cost-effective business setup, it can also be the most counterproductive and hinder your ability to grow. However, you can give your business a positive boost by making smart use of temp agencies. Here are two ways this option can help you.
Avoid Losing Opportunities
Hiring a temp can help you avoid losing business opportunities. Sometimes soloprenuers have to pass up lucrative opportunities simply because they don't have the staff available to help them meet the demand required. For instance, if you run a home-based wedding-cake business, you may not be able to take full advantage of wedding season because you don't have enough time or hands to fulfill all the orders that come your way. This often means lost income opportunities.
By hiring a temporary employee when you experience increase demand, you can free up time and energy to service more customers. The nice thing about temp agencies is they have people with a wide variety of skills. For instance, you can get an employee who has experience making cakes and can help you with the baking. Alternatively, you can get a front-office person to hand the everyday stuff like answering phones and invoices, which will free up time that you can spend decorating cakes for clients.
Once the busy season is over, you can end the arrangement without having to worry about severance packages or other issues associated with letting employees go.
Avoid Trouble with the Government
Another way hiring temporary workers can benefit your business is by helping you avoid trouble with the government. When you hire employees, you assume certain responsibilities, such as making sure income taxes for them are paid and obtaining workers' compensation insurance to cover workplace accidents. If you don't adhere to the relevant laws, you could face serious fines that may wipe out your company.
Some business owners try to get around this by hiring independent contractors to do work for them. However, this can cause problems in your business if you don't handle the situation the right way. For instance, you have to be careful with how much direction you give the person. If you end up having a lot of behavioral control over the independent contractor (e.g., you tell the person what type of tools to use to do the job), the IRS may reclassify the person as an employee, and you could be held liable for paying the taxes and other fees associated with that designation.
When you hire a person from a temp agency, however, you don't have to worry about this issue. This is because the worker is actually an employee of the agency, and the agency is loaning the person to you for a short period of time. This eliminates any legal responsibility you have toward the person beyond what your contract with the temp agency states, and this can save you money and trouble down the line.
For more information about how temp workers can help your business, contact a local agency such as BIRK Staffing & Technical Services.