Thursday, May 6Digital Transformation
Shadow

Why Businesses Need Freelancers Pt.1

Do Businesses Need Freelancers? Of Course, They Do

There’s a new breed of entrepreneurs. One doesn’t have to ponder much as to why businesses need freelancers now more than ever before. Most business owners are stressed and want to have a team of contractors working on their projects instead of keeping all the labor within their own company. This is where freelancers come in handy.

Freelancers can be hired by business owners or freelancers to do many tasks from website design to bookkeeping. Business owners with small teams can outsource to freelancers and the freelancers can perform these tasks within a specified budget.

Freelancers
Freelancer at work

Freelancer is self-employed people who offer services to their clients. Often these services, though not necessarily, are offered to businesses through the proliferation of sharing economy platforms.

The nature of the work, including the duration of the work, the payment terms, and the nature of the relationship between the freelancer and client determines whether the freelance is classified as a contractor or an employee.

Some freelancers use third-party platforms in which they have a temporary hire relationship while some use third-party platforms in which they have a long-term hire relationship and have additional rights to data, accounting, and auditing. Some platforms are managed by a third party while others are managed by the freelancer themselves.

Some freelancers utilize shared economy platforms in which they have a temporary hire relationship while some utilize third-party platforms in which they have a long-term hire relationship and have additional rights to data, accounting, and auditing.

There are different classes of platforms depending on the nature of the relationship between the freelancer and client.

Strategic alliances are platforms where freelancers have a temporary hire relationship. The platform manages the client’s data and invoices, issues receipts, and receives payments. Platforms such as oDesk, Elance, and Freelancer have third-party administrators to administer the relationship.

Strategic partnerships are platforms where freelancers have a long-term hire relationship. The platform manages the client’s data and invoice payments, issues receipts, and receives payments. Platforms such as Elance, Bossreya, and Fiverr have third-party administrators to administer the relationship.

Sstrategi co-venturers are freelancers who provide services on behalf of a company, in return for payment. Sometimes they are also provided with products to dispense on behalf of the company, in which they also have a temporary hire relationship.

Other freelancers act as un-trusted agents, who handle payments and invoices for the company but who are not licensed to dispense products or services. Sstrategi freelancers are monitored by Sstrategi’s own internal auditors.

Strategi co-venturers have a temporary hire relationship with a company. Sstrategi uses the freelancer’s skills to manage the tasks for which the freelancer has been hired. When the work is complete, the freelancer is paid for the job. Sstrategi also has a third-party administrator to manage the temporary hire relationship with the freelancer.

Strategi co-venturers have a long-term hire relationship with a company. Sstrategians use the freelancer’s skills to manage the tasks for which the freelancer has been hired, using the freelancer’s products to dispense on behalf of the company, in return for payment.

African women freelancers
African woman freelancer with laptop

Sstrategians also have a third-party administrator to manage the temporary hire relationship with the freelancer.

What we define as a freelancer is different for every company. This is what makes choosing freelancers difficult. As I have written about previously, I advocate always hiring freelancers through agencies. The agencies make sure that the freelancer is going to be able to deliver what you contracted them to do. This makes it easier to manage your business. This is what I have found to be true even when hiring freelancers for both business and non-business projects.

In business, I have also found that it is helpful to have a dedicated account for freelance work. You can have one or two. Then, once you have paid your freelance contractor, you can assign the account to someone else. This frees you up to focus on your business and lets the freelancer work on his or her own projects. This is what I recommend in my consulting services.

However, this also means that you have to assign a business account to your business. This requires some management to get it set upright. There is a fee for this service. If you start with a business account and assign it to freelance, then assign it to yourself, it is free. You just need to follow up with your business administrator and get all the proper paperwork done.

These services are an additional expense, but they are ones that you cannot pass up. They are essential in enabling your business to grow.

 

Steafon Perry

SP WEBB

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Free Email Updates
We respect your privacy.
You cannot copy content of this page