Titl
Small and new businesses can’t do all projects by themselves, – and they shouldn’t.
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It is much more important for entrepreneurs and founders to concentrate on core competencies and let experts take care of everything else. Typically, such tasks include book keeping, conception and implementation of your website, translations, or filling out your tax declaration. Of course, you can learn the ropes of new things, but this will lose you time and the quality will never be that of an expert’s work.
For many entrepreneurs who consider outsourcing projects to external service providers, the question arises whether it is better to work with a freelancer, service bureau or agency. Is “man-power” more important than the flexibility of a freelancer?
Are there any arguments that caution against a business partnership with a freelancer? Maybe, but when you take a closer look, all of the alleged disadvantages dissolve and freelancers are the ideal experts for many jobs.
Flexibility
Freelancers are their own bosses and often work independently of a fixed workplace. They can either work “on-site” with the employer and thereby keep direct customer contact or they can work from home. In addition, there is usually much less of a time delay when working with freelancers. New ideas and suggestions for changes do not have to be handed down and discussed via three colleagues over two hierarchical levels. Freelancers react quickly and without delay to new instructions. Because they are their own bosses and are fully invested in the project, spontaneous night shifts usually aren’t a problem.
Costs
While freelancers usually charge higher hourly rates than agencies or service bureaus, the overhead costs are generally lower. Companies have to cover their overheads and running expenses and therefore impute a higher profit margin on offers. Of course, freelancers have running expenses too, but they are lower. In addition, many projects are catered for by several hierarchical levels in companies, which lead to an increased need for agreement and additional charges. A freelancer works on a project from start to finish and therefore costs that would arise from multi-team co-ordination efforts will not arise.
Competence
You could assume that an agency or service bureau will be more competent due to the availability of a number of employees. It is however often the case that freelancers are truly pre-eminent in their fields. Their know-how is their unique selling point and capital. Perpetual training and professional development are self-evident. If you are looking for a freelancer for a certain project, you can be sure to find a real professional. The co-operation with freelancers also avoids inconsistencies that happen when several employees work on the same project. Because the entrepreneur plans the execution of the project together with the freelancer, there are rarely any surprises (for example, interim or final results not matching the original plans). Of course, agencies and service bureaus plan projects just as professionally and diligently. However, the same person that planned it rarely implements the project. Therefore gaps in knowledge are not unheard of and new coordination is necessary.
Network vs. Man-Power
Extensive projects that have to be implemented in a short period of time require the support of a team. Freelancers don’t have a team that they can fall back on immediately. Agencies and service bureaus have a decisive advantage in this division. They can take care of complex projects without major problems. However, you shouldn’t entirely discard the possibility of using a freelancer for big projects. Most of the time, many freelancers are well-connected and can get other freelancers on board that are experts in the necessary fields. Therefore, nothing should stand in the way of the realisation of large projects.
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Bottom Line
There is a lot that speaks for the cooperation with freelancers and hopefully, this article dispelled some common prejudices towards freelancers. However, it is not supposed to discourage the co-operation with agencies or service bureaus in general. As an entrepreneur, you should weigh the advantages and disadvantages carefully and decide which choice is the best for your business. Some projects are better left to freelancers while others are perfect for agencies.
