Small startups face a formidable uphill climb to profitability, and cutting corners on costs where possible is crucial to their survival in the fledgling first years. Labor consumes the lion’s share of a small business budget, so being creative when staffing a startup can go a long way toward profitability. To save on labor costs, many small startups are turning to freelance help — contract employees paid by the task or project. Leaning heavily on freelancers to stand in the stead of full time employees also means less government paperwork for the business owner, which equates to more productive time spent concentrating on other facets of the business. But the “why” of utilizing freelancers is simple: the bottom line is paramount.
Freelancers gaining ground as startup "employees"
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