Sometimes it would be nice to do it all, but let’s consider the value in finding the right people to contribute to your business and help it grow.

Top 3 Questions to Consider When Expanding Your Team

1. What support does your business need?
   
   In order for you to successfully connect with the right individual or business, you must first determine the complete scope of the role necessary to support your business. This will include recognizing the skills, time and resources that will be required for the role to make a positive impact on your business.
   
2. Can this role help you grow your bottom line?
   
   It’s important to consider what impact this role will have on your bottom line. This will help you budget for the team member you are bringing on and anticipate a return on this investment.
   
3. Do they complement your existing business?
   
   Hire someone who not only complement your business’s values but someone that possesses a skill set that your business is lacking, so they can help your business grow in a way you quite literally couldn’t before.

Answering these questions will not only help you determine the right time to expand your team, but help you document the role and establish expectations from the onset.

Will This New Team Member Be an Employee or an Independent Contractor?

The classification of a worker as an employee or independent contractor will determine whether you as the employer is responsible for withholding and paying payroll taxes. The worker’s classification is based chiefly on whether you have the right to direct or control the worker’s work. The IRS has a largely subjective 20-factor analysis you can use to assist you in making a determination. I will walk you through this the main drivers that should shed light on the classification.

Main Factors To Consider

1. Will you be directing their hours?
2. Will you be their only “customer”?
3. Do you want to incorporate them into your daily business?
4. Do you want your clients to see them as a representative of your business?

Hint: if you answered yes to these questions, then you are leaning to employee.

How To Protect And Manage Expectations

You have found the right person and have classified them properly as an employee or independent contractor. Now it’s time to iron out obligations, compensation and protect your business from the liabilities that come with a new business relationship.

Employee

– Scope of responsibilities – what you expect from them
– Expected work hours – how many and what hours will they work
– Compensation – if they are salary, hours, any bonus structure or profit sharing
– Confidentiality – protect your information, customer list, and more
– Non-solicitation – protect them from taking your team when they leave

For your employees don’t forget an employee handbook that will cover all of your legal rights and notices that can be distributed to everyone on your growing team.

Independent Contractor

– Scope of their services – what specifically their services will include
– Schedule of deliverables – when each deliverable is due
– Fee structure – how you will pay them for their services
– Relationship of the parties – for tax purposes
– Indemnity – to ensure risks are placed with the right party
– Confidentiality – protect your information, customer list, and more
– Non-compete – ensure that they don’t leave & work directly with your customers
– Non-solicitation – protect them from taking your team when they leave