Bigger isn’t always better, especially when it comes to staffing.
- The growth of the gig economy has made it easy for small businesses to hire freelancers to fill gaps in knowledge or ability.
- Automation not only saves time but also improves product quality.
- Small teams are often more agile and problem-solving than larger teams.
Small businesses have been hit by a double whammy of inflation and economic uncertainty over the past few years. As a result, some companies have started freezing new hires, while others have had to lay off workers. Given that labor accounts for a large portion of a business’ costs, it’s no surprise that some owners are looking for ways to downsize their workforce.
good news? You don’t need a huge team to get the job done. Here are three reasons.
1. Contractors are a powerful force
There are pros and cons to using contractors instead of full-time employees. But in many cases, gig workers can help you get the job done without the commitment and human resource costs of a salaried worker. Sure, you might pay more per hour, but you don’t have to pay for benefits like health insurance or paid time off.
Another advantage is that you can reduce fixed costs, which can easily and quickly reduce cash flow during an economic downturn. This can be a double-edged sword because it means you’re not building a loyal team that knows your business inside out and might be willing to go the extra mile in a crisis.
Gig workers won’t solve every problem. The trick is to think about which tasks a freelancer could do better. For example, you can outsource specific tasks that need to be completed by a set date. That said, keep in mind that freelancers work on their own schedules to meet your deadlines, so you can’t expect them to be available when you need them.
2. You can automate a lot of tasks
At the risk of sounding like an old lady, business automation has come a long way. When I started my first small business more than 20 years ago, the few tools available were clunky and difficult to use. The challenge now is to decide which parts of the operation to automate and which software package to use.
Here are some areas where technology can simplify your operations:
- Customer Relationship Management (CRM): CRM software helps you generate and manage leads and maintain existing customer relationships. It will also help you identify trends and focus on specific customers that are likely to make up a larger portion of your revenue.
- Website and Content Management: You don’t need to know anything about websites to build and maintain a professional website. The right system depends on how much content you produce, how complex your site is, and how well you need it to integrate with other tools.
- Accounting: Good accounting software can help you invoice and track payments as well as manage your books.
- e-commerce: If your business does a lot of online transactions, chances are you already use some form of software to keep the process, especially payments, running smoothly.
Check out our small business page for more ideas on how automation can save you time and money.
3. Small teams can be more agile
One of the advantages small businesses have over corporate giants is their agility. Fewer people usually means better communication, less red tape, and less time spent on administration. Also, when the number of employees is limited, everyone knows their work is important. It can spark creative solutions and improve collaboration.
the bottom line
As a small business owner, it can often feel like there aren’t enough hours in the day. It’s easy to think that hiring more people will reduce stress and mean you can achieve more. The problem is that recruitment is expensive, and training and managing staff can be time-consuming.
In many cases, hiring people can help, but it’s not always possible—whether it’s a matter of money or because you can’t find the right people. If this is your situation, look for ways you can turn this to your advantage.
Reminder: The highest cash back card we’ve seen now has an introductory APR of 0% until 2024
If you use the wrong credit or debit card, it could cost you a lot. Our experts love this top pick, which features 0% introductory APR through 2024, an insane cashback rate of up to 5%, and somehow no annual fee.
In fact, the card is so good our experts even use it themselves. Click here to read our full review for free and apply in under 2 minutes.
Read our free review