Make money early by developing the means to do more work than you can do on your own. People not opening a business to work eighteen (18) hours a day; giving up the benefits they had while working; or to earn less money than they make a job. However, if you don’t plan how you’re going to make your money, it’s easy to get caught in a situation where you might be working alone and nearly kill yourself trying to make things happen.
Even if you are an accountant, you shouldn’t expect to return to your home or office to do your own accounting, financial statement analysis, market research, and other clerical work that all businesses are required to do. A great first step is to understand that you can’t make a lot of money on your own. Once you understand that philosophy, you should plan what you want to do and what things would make the most sense to hire a professional for you.
These facts should be an important part of your business plan. Because as early as possible, ideally before you open your business, you should have an idea of what your working day will be like. Make no mistake, no matter how well you plan, you will find surprises. In many cases dealing with those surprises can add additional tasks to your day that you didn’t plan for. And, this might cause you to have to work more work than you planned just to make a living.
Whatever type of profession you choose to build your company, it takes more than just practicing your profession to get a business going.
Needless to say, you have to practice the profession in which you start your business. But besides that, all companies have administrative work to do such as accounting, strategy development, website maintenance, tax planning and compliance. None of these things cost you a dime, but they must be done for your business to operate efficiently, or at all. And, that’s just the beginning. You have to market to get new clients and you have to take action to stay in constant contact with your existing ones. None of these actions pay you anything and in situations where a small amount of money can be earned on a promotion, they never pay what you can get in an hourly fee to do the work you set up the business for. When you open any service business, a good way to start is to use subcontractors
Along with all the other suggestions we try to offer, using a subcontractor may be the sign you’ve been looking for. However, using them will change any ideas you may have about doing as much as you can to try to earn your own small fortune. This may require you to spend more time selling your services and less time buried under the pile of work you can get your hands on. If you hold professional credentials, you may have convinced yourself that you don’t need help. But, without it, you put a ceiling on your earning capacity. Many people believe that they can overcome this problem by spending a large amount of money to get started. I totally disagree with that approach.
You should be able to start your business for a few hundred dollars or no more than a few thousand. When you are self-employed, you may find yourself putting money into your business just to keep it open. This is one situation where you have to put your ego aside. Your goal should be more than just making your company independent. Your goal should be to generate enough income to pay yourself an attractive income, with a strategy to increase profits frequently.
Sub-contracts may offer you that possibility. Few people question the fact that getting your first client is tough. If you do your marketing right, you will find some businesses that you cannot accept because they are outside your area. Some jobs may require more labor than you can provide yourself. In other cases, you may have to turn down a job simply because you can no longer handle the job alone. And, this is where subcontracting can make all the difference for you.
Subcontracting will help your business do what you set out to do
Many businesses believe that the only way to grow or expand is to hire employees or open another location. Either of these options will incur additional costs. The last thing you need is to incur additional costs for new business. Or, to dramatically increase expenses for an existing business, especially if it means you have to pay less. The worse option is to try to get involved in any of these before your company becomes profitable. In situations where you are self-employed, the business model requires the business owner to do everything. Since you can’t be in two places at the same time, your administration, or your cost-generating work has to suffer. This can lead to long hours of work to get everything done. Or, the creation of an income limit, or even worse a loan to start your business and keep it going.
Subcontracting will help your business do what you set out to do. To generate great income and give you more free time than you would have in a 40 hour week job. And remember, if you work in a profession, you’re rarely working just 40 hours. And if you work as a breadwinner, you will likely have to work part time to make ends meet. So you never have much free time. To make the best use of subcontracting, you must determine what strengths you have that will make your business successful. Your strength can be the ability to focus on an overwhelming task, making sure it gets done. Some people are great at reviewing work and determining ways to make it better. Others may be able to sell successfully. Any of these skills and more can make you a great candidate for outsourcing.
What to include in your business plan to prepare for subcontracting
After deciding on your power, you must determine how you will use it. First, you must draft or have drafted a subcontract agreement. Many such agreements can be found online for free or at very low cost. If you have a lot of money to work with, sometimes it’s better to have an attorney draft your agreement. Completing these tasks should be reduced to writing in your business plan. Next, you’ll need to identify a few potential subcontractors you’d like to approach. Whatever your field, you’ll find most people just want to do the job. Marketing for most of them is a necessary and costly crime. So if you approach them with the possibility of bringing in additional work, most will accept.
Your agreement and the outcome of the meeting with them should clearly indicate that you plan to make a white report about their services. Means you will represent this is your company job. Since they will be receiving business in excess of what they have to market, and won’t need to package the final product, they must be willing to offer a discount on the work. This discount is what you earn for any work done for you by a subcontractor. You will now be paid just to give them a new job.
At the same time, you’ll pick a few high-paying jobs that you earn and keep them for yourself. This will keep you informed if you plan to review your subcontractor’s work. If your strengths focus on your outstanding tasks, you won’t have to mind packing your subcontractor’s work, in your packaging, and can discuss it with clients who believe this work is done by your company. If your strength is sales, I don’t think I need to tell you how well you can do it. Using subcontractors gives your company an in-depth look. While you may initially be working at your kitchen table, this can put you on a faster path to working at the board table of your successful company.
