Building a team on a budget

As a home-based small business, there’s a good chance that you are the boss with zero employees to manage. It isn’t that a workforce is unappealing; it’s that there isn’t the money in the budget.

Surviving is essential, and the best way to do that is to cut costs. Labor is one of the biggest expenses, so it makes sense to avoid new hires altogether. Anyway, you can be successful without them, right? But there are solutions which can help you build a team without splashing the cash.

building a team on a budget

Hire Interns

What you are looking for are people that are willing to work for a small fee or nothing at all in exchange for something else. Interns are perfect, then, because they need the experience to break into their chosen field. To get it, they will sacrifice a steady wage in the short-term for a bigger one in the long-term. And, it isn’t as if their skills are low. Even graduates from Harvard and Yale enroll in internships straight out of college. Their common sense radar may be a little off in the beginning, but they will get up to speed pretty quickly.

Defer Rewards

The best workers want a solid wage and they want it every week or month. You can’t afford them this luxury but that doesn’t mean the company doesn’t have anything to offer. Take a look at the inventory sheet – are you expecting a windfall shortly? If so, you can negotiate a contract with this in mind. All you have to do is defer payment until a certain date so that the firm has some cash flow to cover the costs. A great tip is to base salary on performance. That way, when they hit milestones you will release the funds.

Outsource

If hiring seems like a lot of hassle, then outsourcing is the answer. With one third-party contract, you can hire all the services the business needs without recruiting a single employee. The practice has become so accessible and effective these days that startups don’t bother searching for employees. They simply scout out outsourcers instead because it’s cheap and the standard is high. Managed IT support and services should be high on the list as they cut costs and increase output. Next comes anything from marketing to customer service support and manufacturing. Companies like to outsource accounting, too, as it’s a massive money-saver.

Do A Swap

The next time you are at a networking event, target the people who have services to offer. Don’t bother worrying about the price because you shouldn’t plan on spending anything. Rather, you want to exchange a favor for a favor. It happens all of the time in the industry and is a frugal way to build a team without hiring employees. Usually, it works best for small business CEOs as there is less red tape to negotiate.

 

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