Chances are, you’ll have spent a day or so this month looking at your finances to see where you can save a few pennies.
Christmas is expensive, pay day always seems far away, and it’s (still) January: everyone is miserable. (Except me. It’s my birthday this month. So let’s try to keep the party spirit alive a little.)
And when it comes to running your business, it’s the time of year when we dust off those spreadsheets and think ‘what else will I be paying for this year?’.
Yep, running a business is expensive, especially if you want it to do well. You need clever marketing, effective networking, and people who can do the jobs you can’t (or don’t want to). Spending money, to varying degrees, is pretty essential if your business is going to be a success.
But your outgoings aren’t always necessary. Are you paying for advertising that’s not working? Forking out for unnecessary office extras? Burning up at the cost of your heating supplier’s rates? We’ve all been there. And with a new year upon us, chances are that that last thing you’re thinking of is spending more money.
You probably think it’s just an extra expense to add a freelancer’s fees to your business’ outgoings. But if a job needs doing, it needs doing well. And, if client deadlines are calling the shots, it needs doing quickly.
There are many ways a freelancer can save you money. (I looked at this in a blog post a while back, if you fancy taking a peek here.) We have the experience to get the job done well, and efficiently. We’ll bring an objective view to your project. And, when fees are on your mind, you can save a fair bit when compared to the cost of an employee.
Employer NI contributions can be pricey. And let’s not forget the increasing, compulsory, pension payments you’ll be making. So here’s a quick look at the costs you’re probably looking at when you employ someone.
Finances are not my forte. Therefore, these figures come courtesy of the lovely Liz McCarthy at Northstar Payroll.
Salary Employer NI 1% Minimum Pension Contribution Total
£10,000.00 £260.54 £41.76 £10,302.30
£20,000.00 £1,640.54 £141.76 £21,782.30
£30,000.00 £3,020.54 £241.76 £33,262.30
£40,000.00 £4,400.54 £341.76 £44,742.30
£50,000.00 £5,780.54 £371.76 £56,152.30
And, don’t forget, that 1% Minimum Pension Contribution is rising to 2% in April 2018, and to 3% in April 2019.
Thanks to Liz for her expertise (again, proof that it makes sense to get someone who’s an expert to give you a hand. Liz sorted these figures in a flash, whereas my calculator and I would still be getting angry with one another).
Of course, subject to the size and scope of your business, great employees are often more than worth these additional fees. They’re there for you exclusively, when you need them, and they’re a foundation for your growing business.
But you might not be able to afford to hire someone permanently. So when you need that real expertise, and you only need it for a little while, save some of your employer’s pennies and chat to a freelancer.
Website copy needing an update? Looking for a killer PR piece to shout about what you’re up to? Email marketing campaign copy not up to scratch? Then give this freelancer a shout: firstname.lastname@example.org