Contractual work Startups are generally extremely skilled and knowledgeable in the field that they specialise in. This niche understanding helps them to provide high quality work, which appeals greatly to high calibre clients who are looking to get their work done in the best way possible.
The startups offer immediate productivity. Even though they charge relatively higher rates, they might actually be more cost-effective for companies as there is no money spent on training them and they generally always get the work done in the stipulated budget. Let’s get into the details.
|Benefits of Contractual Work Startup||Drawbacks of Contractual Work Startup|
|The startups can enjoy a very flexible work-schedule||The startups have an unstable work life|
|The startups are basically their own bosses||Between two contracts they basically have zero income|
|They can maintain a great work and life balance||They have to solely bear all the risk|
|They get to earn a lot more money||Taking vacation indirectly reduces their income|
|They enjoy a lot of benefits on the side||Balancing contracts and business growth is extremely hard|
|They work on a project basis|
|Their dedication makes them desirable|
|They have to face minimal interference from management|
Advantages of Contractual Work Startup
- Flexibility :
The startups can enjoy an extremely flexible schedule for work. They can regulate their own schedules and even their working hours, if they so desire. So the startup entrepreneurs can plan their work schedule around their own and if needed their employees’ lifestyle aspirations to decide on the best time for work.
- Being your own boss :
Contractual type of work provides the startups with a greater amount of Independence. They get far higher predictable control over the work they have to carry out, thus leading to better job security(for their employees too) than that on offer at traditional forms of full-time jobs. They are solely responsible for their own benefits, contracts they take, their vacations, their profits, etc.
- Maintaining a desirable work/life balance :
Owing to the fact that the startups are their own bosses, the entrepreneurs can often complete all of their tasks sitting in the comfort of their own home. Since they all know exactly what the work is, it is not necessary to always be at the office space to complete it. This can also help diffuse office politics.
- Earning a lot more money :
Dealing in contractual work means the startup gets paid at regular intervals, at the rate prevalent in the market, which can be per hour of work done, per month, etc., as stipulated on the contract. On top of that, if they can assure a high standard of work, they can also charge relatively higher rates.
- Benefits :
The startups are privy to a host of different benefits offered to them by the entity that hires them. For example, often a company that hires these startups can offer varied benefit packages that may include paid vacation for the startups’ entrepreneurs, life insurance policies being doled out to them, health plans including vision and dental plans, etc.
- Project Basis :
Contractual work startups, work on the basis of the project(s) available. So they can be hired for specific needs and/or purposes and once the project is completed, the company has no obligation to re-hiring the startup, unless they want to. This can be a very advantageous feature to have for the startups.
- Dedication :
As the startups get to choose the projects they work on, they are much more focused and have a lot of passion for finishing the work properly and on time. Thus they are generally very reliable for the delivery of work of s high standard. This makes them very alluring for the companies who have work on their hands.
- Interference from Management :
Company management often oversee the work being done by their employees almost to the point of micro-managing them. However, they cannot do that with the startups as the startups work independently and post an initial brief about the entire project, the startup can finish the work on their own freely, with the company overseeing their progress sometimes.
Disadvantages of Contractual Work Startup
- Unstable :
Contractual work startups generally have a very topsy turvy life. Basically they function from one contract to the next. Not only that, it is possible for the hiring company to fire them in the middle of the contract, in case they fail to live up to the standards required, or the stipulated time frame, etc.
- Down Time :
Down time between two contracts basically means no work for the startups and thus, no income either. This can be a really testing time as any business venture always has expenditures on hand, eg. Employee Salaries, etc. So even though they are not generating any revenue at that point in time, they still have to spend.
- Risk Factor :
It can be tricky selecting the contracts that you work for, as any kind of miscalculation or even unforseen fluctuations in the market can put the business into jeopardy. The startups being their own boss in this line of work, must pay their own taxes, and will be held accountable if their work is found to be faulty.
- Vacation :
Being in the line of contractual work means even though the startups can take a break any time they want, they will always think twice before taking one. Any time the entrepreneurs and/or the employees take a vacation the work slows down, if it does not stall completely. Less work equates to less income for the company.
- Balancing :
Contractual work demands the full attention of the startups at every given moment. They have to go over every step of the whole process beforehand and carry it out perfectly in order to keep getting contracts. This rarely leaves them any time to think about how to grow their businesses. Balancing the two can be very hard.
So as we can see startups definitely stand to gain high rates of income if they can successfully survive in this dog-eat-dog industry. However, as clearly shown in the drawbacks, there can be a lot of hindrances in the way of keeping the business successful and all thorough research is mandatory before diving headfirst into this business.
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Business, marketing, and blogging – these three words describe me the best. I am the founder of Burban Branding and Media, and a self-taught marketer with 10 years of experience. My passion lies in helping startups enhance their business through marketing, HR, leadership, and finance. I am on a mission to assist businesses in achieving their goals.