In our recent post, “11 Ways to Save Your Small Business Money,” we talked about a lot of things that you can to help reduce expenses for your company. Among the things we listed in the post were things like sharing space and outsourcing some of your internal duties. One of the things that didn’t get covered in that list was “paying a great rate for top quality professionals.”
It’s a subject that doesn’t get talked about a lot on money-saving and frugality blogs because the core of the idea is based on paying more than you absolutely have to and that runs contrary to what most people imagine when they start trying to come up with ways to save money. Why pay more, when they’re trying to pay less?
To answer that: consider the following scenario:
Mark runs a small web design firm. He employs a few coders but chooses to save money by doing his own payroll and outsourcing his social media, marketing (including content and copy creation) and graphic design needs. He finds his freelancers through bidding sites–he hasn’t gone so far as to hire someone from Fiverr yet, but he sees no reason to pay large sums of money to someone to design a logo when he can find a freelancer to do it for ten bucks or so on one of the bidding sites.
Then, one day, one of his coders asks why taxes haven’t been taken out of her paycheck in two months. Mark looks back over his books and realizes he’s not sure how to make up for the taxes he forgot to take out. And when he looks up the answer he discovers that he’s been paying his payroll taxes according to last year’s regulations, not this year’s regulations. Oh no!
Then a client calls and complains about the terrible logo they received. The colors aren’t right and the name of the business is spelled wrong. If Mark is going to provide such shoddy work, they’re threatening to jump ship and go to another firm for their web needs.
As if that wasn’t bad enough, he gets an email from his web hosting provider calling him out for being a spammer. It turns out that the freelancer he paid $50 to take care of his social media and link building decided the best route would be to blast spam comments linking back to his site to a few hundred blogs using a blaster program he downloaded from the web.
It’s a doomsday scenario to be sure, but the fact is that all of these things are possible (though they’d likely be spread out over a longer period of time than a week or so). When you try to do too much yourself and you cut corners on vital business needs, you get what you pay for: shoddy work, terrible service and possibly even irreparable damage to your reputation.
The fact is: hiring professionals who know what they are doing frees you up to work on building your company in other ways, such as hiring an accounting firm to manage your payroll, benefits packages and other company financial matters. The Accounting Taxes Payroll Partners has an entire blog post about how to use strategic payroll partnerships to better manage cash flow.
An online marketing and promotions professional would know that Google has been cracking down on black hat link building methods like blasting spam comments to blogs.
Bringing a full time graphic designer on staff would have ensured that Mark’s client’s graphics would have fit in seamlessly with the site being built (and that the client’s company’s name would have been spelled right).
It’s true: hiring top-notch professionals costs more money than doing things yourself or hiring the lowest priced contractors you can find online. In the long run, though, these professionals don’t just save you money you’d spend on correcting mistakes and paying fines and fees, they actually help you raise your profit margin. It’s the very definition of “spending money to make money”!