Pros and Cons to Hiring Associates
Hiring associates to assist you in business is a positive means to higher productivity. As an entrepreneur or small business owner, there will be times that you will feel overwhelmed by every day business activities. With an associate or two on board, you can easily ease your stress with a phone call or email.
What is an associate?
An associate is a business professional who has the same level of expertise as you do and is willing to work independently with you. Associates come from all types of industries and are perfectly capable of providing accurate, timely, and professional services to your clients.
Most associates have a business of their own. If you take on an associate, it must be clear that when they perform tasks for your business they present themselves as an employee of your company. Without the proper contracts in place, hiring an associate could become a nightmare.
What are the benefits of hiring an associate?
Two heads are better than one! Undeniably, your business will benefit from hiring associates. You can work independently and give the appearance as if your business is made up of a team of professionals. Potential clients will see you as a corporation rather than someone flying solo.
Here are some positive benefits:
- The word ‘associate' sounds professional and gives your business an air of professionalism from the get-go.
- The technical skills the associate brings to the company can be marketed within your business to provide a wider realm of services to your client.
- The associate is there to help you analyze a situation or work on tough projects.
- The associate can take on the overflow of work so that your company can make more money during a month's time.
- The associate's services can be obtained at an affordable rate verses hiring an employee.
What are the disadvantages of hiring an associate?
Most of us want to believe in someone's word rather than asking them to sign a legal and binding document. But in the real world, this isn't realistic. People may enter into an agreement with good intensions, but the majority fails.
Here are some disadvantages:
- The associate does not have the credibility that is needed.
- The associate is not skilled in the area they've led you to believe they are.
- The associate does not complete the task accurately.
- The associate contacts the client without your approval.
Even though hiring an associate has its risks, the practice is one that has more advantages than disadvantages. You lower your risks if you hire individuals you can hold accountable. For instance, if you operate in the USA make sure that you hire those who reside in the USA. Laws change when you work with other countries and it is harder to keep the associate accountable.
The whole point of having an associate is to have access to someone that can assist you. That person or persons should be individuals that stand by a strong code of business ethics and want to see your business grow.
Information is for educational and informational purposes only and is not be interpreted as financial or legal advice. This does not represent a recommendation to buy, sell, or hold any security. Please consult your financial advisor.