To Sub-Contract or Not to Sub-Contract? The Freelancer’s Question

So you have enough work that you can afford to hire someone else. Wow, look at you stimulating the economy!

But seriously, in world of freelancing, whether you write, design, program or perform some other vital service, it’s common to get swamped with work, and sometimes rather than pass on a project and risk alienating a client, you want to hire someone to help out. Or at least, that has been my reason for hiring a subcontractor in the past. I’m sure the reasons for hiring subcontractors run vast and deep.

No matter what your reasons, when faced with the decision of hiring a subcontractor, there are a few things you want to keep in mind.

Honesty is the Best Policy
Whatever you do, however swamped you are, never, ever, ever fail to tell the client that you are using a subcontractor. Put yourself in a client’s shoes. They are trusting someone with work that is probably integral to their business. (If it wasn’t , why would they be paying your rate, right?) They hired you because they liked your proposal, or your website, or your voice, or, most likely, the distinct combination of all three. These guys are your bread and butter. Don’t pull the old bait and switch with them. It’s dishonest and it gives our profession a bad name.

You might be the exception to this rule if you are agency or someone who makes it crystal clear in your promotional materials that you regularly employ subcontractors. Still, you want to make sure that the client understands what he’s getting for his bucks. That’s just good business.

The same goes for your subcontractor. Never pass yourself off as the end user of the work. Don’t we freelancers have to put up with enough shady Craigslist ads without one of our own lying to us? Practice solidarity within the profession and approach the relationship for what it is.

Hire the Best
This is just good common sense. If you need a subcontractor, take the time to review all the applications coming in and pick the one that fits. Clients have reported to me that they receive hundreds of applications for freelance writing jobs, and I’m sure it’s the same for all the other industries that routinely breed freelancers. Be crafty in your ad and weed the chaff out in the early stages by asking applicants to follow specific directions. If they aren’t detail-oriented enough to pay attention to instructions when making a first impression on you, then why would you want to work with them? Ultimately it’s your reputation that answers for the shoddy work of a subcontractor.

On that note, can’t afford someone who performs as well as you do and is willing to work for the same paycheck? Then maybe you aren’t charging enough. Reassess.

Care and Feeding of the Subcontractor
For pete’s sake, compensate the subcontractor fairly. Of course, it was your experience, reputation and marketing that landed the client, and you are serving as project manager and final editor for the work, so you don’t have to pay them exactly what you are making, but don’t exploit the little guy. If you are sipping a mojito while your subcontractor does all your work for a teensy fraction of your pay, then you are discrediting freelance writers everywhere. Stop that.

Also keep in mind that freelance writing is a profession where the tables can quickly turn. Create a cordial relationship with your subcontractor, and one day he might throw work your way. Lie, cheat and steal, and your subcontractor, and perhaps your client, will most likely figure it out. You don’t want to be one of those names preceded by “Scam Alert” in a Google search, do you?

In summary, practice the golden rule when it comes to your subcontractors. It’s just the right thing to do.

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The Successful Entrepreneur: A definition in-progress

“Entrepreneurs take on risks and commit extensive energies to make dreams come true.” John Crites, President/CEO Triangle Technology Executives Council

The context surrounding that quote can be read here, and it addresses the upsides, pitfalls, and definition of what it means to be an entrepreneur.

Since we can all look up the word to get a formalized definition, let’s dig a bit deeper and explore what it means to be a SUCCESSFUL entrepreneur.

Scenario: It’s your third year in business for yourself, and you’ve managed to gather a pretty hefty list of clients. Some of them even pay on time and love your work, but most of them fall within the category of those you have to “gently nudge” to remind them to pay you on time. You’re getting by, albeit barely, but you’re your own boss, so you are successfully working as an entrepreneur, right?

Comment below and tell me your thoughts about what defines success as an entrepreneur.

I asked a few self-employed folks—burgeoning and established—what would qualify them as successful, and here are a few of the responses:

• When I’m not checking Craigslist twice a week for part-time traditional jobs.
• When I can pay ALL my bills on time, consistently.
• When my company can take out an ad and not go broke.
• When I can consider sponsoring an event.
• When I don’t envy my friends who work “regular” jobs because they know when their next check is coming in.

There’s a lot of time and energy that goes into work at any level, entrepreneur or employee, but for the self-employed person, the importance of standing out and converting leads to clients can mean the difference between making it to another year versus calling up your old job and asking about openings. Our efforts need to be consistent, and no doubt, we have to develop a serious “hustle” about ourselves. But does “hustle” inevitably lead to results? How do entrepreneurs make the transition from simply “doing okay” to confidently asserting the status of “Successful Entrepreneur”?

HERE’S TO YOUR SUCCESS!

For home-based entrepreneurs, there’s the cushion of low overhead, but the risk of being too far below the radar. Experienced home-based consultant James Stephenson offers several tips to help you get where you want to be. Check them out!

Social media has certainly been kind to the savvy entrepreneur, but how do we maximize our microcelebrity by turning popularity into profits? I love this tip from John Jantsch of Duct Tape Marketing: “Sell awareness and the money will follow! Read the rest of this valuable post on the truths of social media marketing here.

Here’s a “How To” activity created specifically for entrepreneurs. I think it’s great for entrepreneurs at any stage in the game, because focusing (or re-focusing) on why we went into business for ourselves in the first place, is a vital step in keeping the proverbial flames fanned.

How do you define success as an entrepreneur?

Buy Holiday Gifts from Fellow Small Business Owners

Do you ever secretly dread your holiday shopping? Sure, the look of delight on your recipient’s face is worth the effort, but there has to be an easier way than battling crowded mall parking lots and chancing buying them a duplicate of this season’s hot new gift. If you want a different kind of holiday shopping experience, there is a way. Buy your Christmas gifts from your fellow small business owners and you show your small business solidarity and pump money straight into the American economy. Here are a few ideas to get you started:

Stroll Your Neighborhood – When you spend money at a big chain store, that money goes back to corporate headquarters where it is disbursed all over the world. On the other hand, when you shop locally, two times more money stays in your local economy than it does when you shop at a chain. This money lines local pockets, where it is again spent in the local economy, eventually improving services and quality of life, and attracting more investment and enterprise. And you can jumpstart all that simply by holiday shopping close to home. Further, buying local is good for the environment because it decreases shipping costs and carbon emissions. Take a stroll downtown or do an internet search for local artisans. Little did I know that I have a maker of authentic, fresh pasta just down the street from my home. There’s no telling what gift giving opportunities you might fine just around the corner.

Buy Handmade from Etsy or 1000 Markets – Your gift recipient holds a unique place in your life, so what better gift than a one-of-a-kind item? If you’re not sure what your recipient would like, use categories to narrow it down. The fashionista on your list will love earrings or bags that she won’t see on anyone else. The gadget friendly might enjoy this custom iPod docking station made out of a tree branch (it’s a must see to appreciate!), and men on the go will turn heads with a hand made messenger bag.

EBay – Do you have a collector of 19th century manuscripts on your list? Shop eBay. Does your teenager want Japanese anime figurines? Shop eBay. Celebrity obsessed sister pining for an authentic autograph? Shop… well, you see where I’m going with this. EBay is the number 1 worldwide marketplace for unique gift items. From outsider art to cutting edge electronics if it exists, you’re going to find it, in some form or other, on eBay.

Specialty Online Stores – Whatever you are looking for, there is probably a small business out there devoted to it. Better World Books, a small business started by three University of Notre Dame students, ships all their reads carbon neutral, while Baby Huggables Couture makes sure any little ones on your list can ride the stroller in style. Whatever you’re looking for, do a web search and you’re sure to return some amazing results.

Are you planning to buy your holiday gifts from a small business this year? Feel free to promote your favorite vendors or most dazzling deals in the comments!

5 Things to Consider with Popular Year End Charitable Gifts

December is historically a time when individuals and businesses give the most to support charities. Charitable organizations are feeling the pinch from a bad economy also. If you are planning any year end giving here are a few tax considerations before you make that gift.

1. Rules for Clothing and Household Items
To be deductible, clothing and household items donated to charity generally must be in good used condition or better. A clothing or household item for which a taxpayer claims a deduction of over $500 does not have to meet this standard if the taxpayer includes an appraisal of the item with the return. Household items include furniture, furnishings, electronics, appliances and linens.

2. Rules for Monetary Donations
To deduct any charitable donation of money, regardless of amount, a taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. There is also a requirement that a taxpayer obtain an acknowledgment from the charity for each deductible donation (either money or property) of $250 or more. However, one statement containing all of the required information may meet both requirements.

3. Considerations for payroll deductions
For payroll deductions, the taxpayer should retain a pay stub, a Form W-2 wage statement or other document furnished by the employer showing the total amount withheld for charity, along with the pledge card showing the name of the charity.

4. Special rule for certain IRA owners
This provision, currently scheduled to expire at the end of 2009, offers older owners of individual retirement accounts (IRAs) a different way to give to charity. An IRA owner, age 70½ or over, can directly transfer tax-free up to $100,000 per year to an eligible charity.

5. Donate now pay later
Contributions are deductible in the year made. Thus, donations charged to a credit card before the end of 2009 count for 2009. This is true even if the credit card bill isn’t paid until 2010. Also, checks count for 2009 as long as they are mailed in 2009 and clear, shortly thereafter.

Help Wanted, Part 2: Finding the Right Employee

So you’ve decided that your small business would benefit from an employee. Now its time to go out and find one! There are several ways to go about finding an employee, and each has its pros and cons.

1. Word of Mouth – When you hire a vendor, do you take bids from all comers, assuring yourself reams of proposals to wade through, or do you ask around and get recommendations from your network? I’m guessing you probably try to narrow your choices down by asking around, and there’s no reason you shouldn’t do the same thing when hiring an employee. With the economy the way it is today, there are plenty of talented people out there looking for work. Instead of jumping right into posting a Want Ad, put out some feelers with your network. On the other hand, if your network is limited or star employees are tough to find in your industry, you may be overlooking some of the best talent. That’s why it’s not a bad idea to:
2. Post a Want Ad on a Specialty Site – Just because nobody in your network knows that expert donut baker with killer blogging skills that you require for your open position doesn’t mean she isn’t out there. You just have to attract her. Now its time to advertise. Are there specialty job sites dedicated to your industry? Serious professionals will often frequent these places. If you want someone who is already in the know about your industry, these are the places to look.
3. Post a General Want Ad – As a former hiring manager, I can testify that once you place a Want Ad in a newspaper or on a site like Monster.com, Careerbuilder.com or even Craigslist, applications will arrive in droves. The Photoshop ninja you need will likely apply, but it can be difficult to find his or her resume among the four hundred other resumes deluging your inbox. For a small business owner, a general Want Ad can be a blessing when it comes to finding great talent, but a curse when it comes to wading through the dreck to get there. After all, you’re hiring an employee because you already don’t have enough time in the day, right? Still, opening your position up to all comers can be a great way find talent, and it can even be a necessity when you are looking to fill a highly specialized position.
4. Contract Freelance Employees – With the explosive success of web sites and services such as oDesk, it is easier than ever to find, manage, and review outsourced or remote staff.  While freelance employees suffer from not being as directly engaged with your business, you can find exceptional talent and support for everything from web site design to marketing, accounting to copy writing, voice talents to customer service.

In the next part of this Help Wanted series we will look at how to structure a Want Ad so that you attract the best applicants and weed out the rest. In future parts, we will also discuss interviewing tips and tricks on how to determine which employees are ambitious and will stick with your company long-term.

In the meantime, when searching for a new employee, how do you find your prospects?