Getting Started Overview

Everything you need to know about starting a business in a nutshell from Ventureport.org™—the Online Outfitter for the Entrepreneur’s Journey

Overview: Staffing and Management

Unless you've got big financial backing and a monumental idea, you should be as lean as you can at the start. That means as few fixed costs (meaning salaries or other regular expenses) as possible. That said, every business has key functions and, while you might be willing to work for free or very little because you own the place, most others won't. And, if they do work for little or no money like you, they will want a piece of the action, and that opens up new cans of worms. Unless your partners have proven skills, bring hard cash or access to customers. Consider very carefully sharing stock, otherwise known as equity, with anyone. Partners can help you soar to success or fall flat. Sometimes both.

Independent contractors. The ideal scenario is to start your business using as many independent contractors as possible. Known in some fields as freelancers, these are people who will work based on projects rather than for a salary. That means you only have to employ them when you have work for them. If your clients give you some advance payments on projects (See Accounting and Billing Practices), you can "sell yourself" into business.

Self-assessment is critical. The key elements with staffing and management- know your strengths and weaknesses, and what you can do and can't do. Hire as few people as possible at the beginning to keep your fixed costs as low as possible. You will sleep much better at night if you don't have a big payroll to meet in those early days.

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