Strategies for startups to hire freelancers, how it is gaining relevance, and how to pay overseas contractors.
Strategies to Hire Freelancers
Establishing a startup requires perseverance, agility, and emotional toughness. High-growth companies should have the ability to scale while still being cost-effective. The significant expense when launching a startup is human capital. The human capital includes freelancers. These are outsourced workers, and they work independently or under agency for short term or long-term as agreed. An investor can use the following strategies to hire freelancers:
Have a Specific Niche
Before proceeding to the launching, an investor should have a particular niche. An investor should select a freelancer who has a proven track that they have a passion for the investor’s sector. Moreover, the cofounder can do more research to understand the questions they should ask during the interview sessions.
Running an Analysis
The slightest variances in the analysis will affect the business as it continues to run. One should examine the kind of workers who will be the recipients of the products or services. The examination helps the investor to determine the appropriate questions to ask during the interview.
Looking Into Your Finances
Investors should ensure they have adequate financial support before they launch a startup. The details are more expensive sometimes. Therefore, an investor should get their books set up by a Certified Public Accountant. The procedure saves the investor from future headaches and legal disturbances.
Freelancers Must-Do Marketing
All freelancers have an entrepreneurial mindset. Therefore, they should comprehend to some degree how marketing and sales are made. The investor should then use the available resources and make marketing a priority. If the investor has limited capital, they should try accessible marketing areas such as social media and blogs. Investors with adequate resources should go for paid marketing, such as Facebook.
How Network of Overseas Contractors is Gaining Relevance
Operating a profitable startup business is more accessible when the investor has dedicated and united freelancers. For one to build and maintain their business, they should outsource. Outsourcing involves hiring talents; freelancers for the sections where an investor needs the most help. The overseas contractors have various skills that an investor can use to catalyze their business launching and growth. Freelancers may include; web developers, web designers. Accountants, researchers, and editors. Nowadays, outsourcing is becoming a more popular industry. The following explains how overseas contractors are gaining more relevance:
Freelancers are Work Virtually
Freelancers are found all over the world. For example, according to the “Freelance Union and Elance-oDesk” study, about thirty-four percent of the labor force are freelancers in America. The freelancers work at their homes; hence an investor does not need to provide working space or supplies. This cuts off the overhead costs when compared to employing an in-house worker.
Most of the freelancers can comfortably adapt to the investor’s time zone. They are readily available for emergency assistance and are always online. However, freelancers prefer working when convenient for them; that’s why they chose the industry. Freelancers can be employed when needed, whether it is for a long-term, project-based, or short-termed.
Overseas contractors take the complex tasks, giving the investor more time to focus on the core objectives. Freelancers ensure that the business is running smoothly without regular supervision. When the business grows, freelancers help the investor to keep up with the current market demands. The investor can save a lot of time since they are not responsible for processing the hard work.
Lowers the Startup Expense
Hiring freelancers enables the investor to reduce the overhead costs and training costs. Moreover, the investor is not bound to handling freelancers’ taxes and other benefits since they are independent contractors.
Benefits For Startups to Leverage Freelancers
Reduced costs - When an investor hires freelancers, fewer employees are required to work on the company premises. Moreover, freelancers cut the wage bill enabling the investor to operate in a smaller place. Freelancers are also responsible for their taxes, and this minimizes the costs further.
More Skilled Workers - Freelancers help small startup businesses to acquire skilled personnel. A small business may lack funds to pay a full-time employed expert but can afford an expert to perform particular tasks for a short period. Moreover, a small business may not have sufficient work to fill the full-time employee, hence needing a freelancer.
No Pressure to Keep New Freelancers - Sometimes investors have to compromise the poor performance of some workers. Freelancers relieve this burden from investors since freelancers are many, and they can easily swap to the next who fits the role. The swapping saves the investor from investing their energy, time, and money in training the freelancer to perform the task efficiently.
Startups can pay Overseas Contractors with their Preferred Payment Methods - The investor should first decide between hiring a freelancer or an in-house employee. After that, the investor should then understand the methods of paying the workers. The payment method impacts the worker in terms of classification, efficiency, and cost.
Investors are encouraged to use the freelancer’s preferred mode of payment. The following includes some of the payment methods that freelancers may select:
It is the most expensive mode of payment. One has to set up a local corporation and establish a compliant payroll in the destination. It is difficult for startup businesses engaged in sales or simple marketing to adapt this method.
There are several third-party alternatives available for freelancers. The options help the contractors avoid the exposure and complexity of the: Do It Yourself” payment methods.
With XanPay, a freelancer can receive almost instantaneous payments without heavy charges for international transfers and foreign exchange fees. While typical PSPs charge as high as 6% for international transactions, XanPay offers a flat rate of 1.99% even for overseas transactions. Moreover, you do not have to pay an annual fee for setup or maintenance. The payment solution has a simple procedure to set up and you can start using its services within 3 to 5 days.
A company can leverage our payment solution to disburse payments to overseas contractors such that it meets the needs of your organization as well as the freelancer.