A government or a company may decide to outsource services from a small business or individual, services that can be done from their offices by their employees. This type of business is called Independent contracting (Self-employment). Outcomes from a research showed that Individuals who are self-employed highly contribute towards the changes that occur in economic strength and growth. This was after a study done by Phillip Romero, Professor of Finance from University of Oregon in California.
There are many rules set that need to be followed for independent contractors. This is so to remain on a high level and not be referred to as employees. They should be able to stay in control when performing the duties to render the service.
This can be a success if the individual contractor is able to create a working time table. This so as every task is completed in time, overseeing payments and tasks of workers, renting working space. If this is agreed upon before the work can be done from the premises of the hiring company. If one has all the instructions and guidelines necessary to get the work done, not asking from the hiring company.
If this major rule is followed, the difference between individual contractors and employees will be clearly seen. It exposes the fact that employees have to follow instructions from their employers. On the other hand, contractors are free to follow their own style of getting things done.
The contractors should be able to show that they can either get profits or make loses a symbol that they are independent. Small businesses or individuals can achieve this by showing that they constantly incur business expenses such as office space charges, payment for internet services, workers payroll expenses or cost of buying equipment. There is a chance to know whether profit will be made or loss incurred when invoicing the work done. It's important to come up with a comprehensive invoice once the project is complete rather than daily billing so that all expenses are reflected so as to avoid charging less than required.
Wider services provision is also vital. The independent contractors should not focus on marketing their services to an individual or one company. Intense marketing should be done by the contractors getting well designed business cards and letter heads, signing up in different professional organizations, getting a website, appearing in telephone and postal directories, attending trade exhibitions, cold calling of prospective clients and print advertising via newspaper, journals or magazines. The more customers independent contractors have the less their status is questioned.
A written agreement is important to show the contract between the hiring firm and the independent contractors. This document should in a clear manner say that the services are being offered to the firm by an independent contractor. It should also state that the major objective is getting the project done within the stipulated period without any interruptions from the hiring company. The contractors should confidently state that they are not employees.
According to Phillip Romero, removing or restricting individual contractors would greatly affect the economy of California. This is because they it is one of the leading states that has high number of small and new businesses forming every day. This is considered to be an advantage to the economy of California because it increases the rate of employment.
There are many rules set that need to be followed for independent contractors. This is so to remain on a high level and not be referred to as employees. They should be able to stay in control when performing the duties to render the service.
This can be a success if the individual contractor is able to create a working time table. This so as every task is completed in time, overseeing payments and tasks of workers, renting working space. If this is agreed upon before the work can be done from the premises of the hiring company. If one has all the instructions and guidelines necessary to get the work done, not asking from the hiring company.
If this major rule is followed, the difference between individual contractors and employees will be clearly seen. It exposes the fact that employees have to follow instructions from their employers. On the other hand, contractors are free to follow their own style of getting things done.
The contractors should be able to show that they can either get profits or make loses a symbol that they are independent. Small businesses or individuals can achieve this by showing that they constantly incur business expenses such as office space charges, payment for internet services, workers payroll expenses or cost of buying equipment. There is a chance to know whether profit will be made or loss incurred when invoicing the work done. It's important to come up with a comprehensive invoice once the project is complete rather than daily billing so that all expenses are reflected so as to avoid charging less than required.
Wider services provision is also vital. The independent contractors should not focus on marketing their services to an individual or one company. Intense marketing should be done by the contractors getting well designed business cards and letter heads, signing up in different professional organizations, getting a website, appearing in telephone and postal directories, attending trade exhibitions, cold calling of prospective clients and print advertising via newspaper, journals or magazines. The more customers independent contractors have the less their status is questioned.
A written agreement is important to show the contract between the hiring firm and the independent contractors. This document should in a clear manner say that the services are being offered to the firm by an independent contractor. It should also state that the major objective is getting the project done within the stipulated period without any interruptions from the hiring company. The contractors should confidently state that they are not employees.
According to Phillip Romero, removing or restricting individual contractors would greatly affect the economy of California. This is because they it is one of the leading states that has high number of small and new businesses forming every day. This is considered to be an advantage to the economy of California because it increases the rate of employment.
About the Author:
The home page found at www.artimperativequest.com provides details about Phillip Romero. As a person of note in the art world, biographical information can be seen at http://www.artimperativequest.com now.