Article by Jane Tweedy, Business Advisor, Western Sydney Business Centre
Having sorted out systems and processes (covered last week), if you’re still overwhelmed with your workload, it’s time to look at outsourcing work or hiring an employee. Below I touch on how to go about this.
Time logging
As a micro business owner, you’ll be doing most if not all functions within your business. You’re the IT, service, marketing, and accounting departments, all rolled into one! Therefore before hiring we need to determine what type of workers we need. Time logging involves noting down how much time we spend doing each function. We can then use this to work out do we need an admin person, marketing, technical etc. It may also have side effects in identifying where we undercharge, or how much time we REALLY spend on Facebook! Log 15 minute increments using an app or a spreadsheet for a few ‘normal’ weeks.
Outsourcing and the deemed employee issue
Typically we start with outsourcing – getting a business outside of ours to perform a function. Please note outsourcing to a company as a contract for services is relatively simple – they perform the service and invoice us. If they’re a sole trader we need to make sure using the ATO tool that they are a contractor, and will not be considered a ‘deemed employee’, as we will need to pay their super. For all outsourcing make sure the ABN is valid or you need to withhold payment.
Hiring the right employee
You can hire casual, or permanent employees (full or part-time). You will have obligations, which you can find from Fairwork Australia or your advisor. If you have older children, consider employing them in your business, which can be done in most cases subject to meeting some standards (like not employing during school time).
Selecting the right person or business
Make sure the person fits your needs, not just in technical elements but also cultural fit and the values of the organisation. You can seek recommendations from trusted people, advertise or utilise your network of contacts.
Small Business Grant
You may be eligible for the Small Business Grant of $2000, payable after a year of employment. Certain criteria apply which you can find from Revenue NSW.
Need help deciding if you need to outsource or hire and employee, please make an appointment to see one of our business advisors for up to four hours at no cost with no catches! Book now!