Have you ever dreamed of owning your own business? I have. It’s easy to dream about the fun you would have being in charge. It’s fun to dream of a cool company name, the bazillion dollars you would make, and the crazy company benefits you would offer. #EveryoneGetsAPony
But on the other side of the dream are the details. It is the details of owning and running your own business that scare most people away. And the more people you have in your organization the more details there are to figure out. That’s why so many people decide to simply freelance, or become consulting cowboys and cowgirls, rather than deal with the complexities or paying other people.
I have seen far too many freelancers, consultants and business-of-one types become so fearful of hiring additional help that they hurt their own business and limit their own income. They never take advantage of opportunities for larger projects. And they never scale up. Because they don’t know how to handle employees, freelancers, contractors or outside vendors. And that’s a real shame.
When I launched my advertising and idea agency, The Weaponry, I had a dream. #MLKJr I dreamed of growing The Weaponry into a large, amazing organization. Which meant that we needed to be able to easily add to our team. Luckily for us, there has never been a better time in history to launch a business. Because there are so many digital resources to enable you to easily do big businessy things as a small startup.
We use Quickbooks to run our accounting. It makes it hyper-easy to create and send estimates and invoices. It allows us to track our accounts payable and accounts receivable. We can see our profit and losses anytime. We link Quickbooks to our bank accounts and credit cards. And it makes it easy to track everything.
One of the challenges a business owner must be able to handle is paying the people who perform work for the business. Some business owners decide to pay people under the table. This typically means you pay them in cash to avoid officially tracking the payment. Which means no one has to report the payments or the income to the IRS or state or local taxing agencies.
But this is not how real businesses operate. If you want to have a legitimate business, which you should, you pay people real wages, report the payments and income legitimately, and pay the appropriate taxes and withholdings. (Cue the national anthem and soaring eagle.)
Making all of your payments legally and correctly is actually really easy. We use a great payment app called Gusto. Every time we hire an employee, freelancer, contractor or vendor, we set them up on Gusto.
Here’s how it works:
- Individuals enter their social security numbers.
- Businesses enter their tax ID numbers.
- Everyone enters their address.
- Everyone enters a bank account where they want their payment directly deposited.
- Everybody Wang Chungs tonight.
Trust The Process
We then process all of our payments through Gusto. And it works like magic. Based on factors like location and type of work performed (employee vs contractor vs vendor), it knows what type of payment needs to be made. I think it even knows if you’ve been bad or good, so be good for goodness sake.
Gusto automatically figures out taxes, social security, unemployment insurance, workers comp details and the types of things that would otherwise keep you awake at night wondering why you decided to start your own business.
Together, Gusto and Quickbooks, along with our accountant, Sally Bretsch, make our accounting one of the least stressful parts of owning my business. We have an easy-to- follow system for onboarding employees, contractors, clients and vendors. We get people set up quickly and we pay them on time. All of the difficult calculations happen automatically. And we spend more time doing the important work that helps us grow our business and keep our clients happy, like Pharrell Williams.
The Price Is Right
The fee structure is simple. You pay a small monthly fee. And then you pay a small, increment cost per-person-you-pay-through-the-system each month. It is highly affordable and totally worth the sanity it preserves.
A Great Time To Sign Up
Recently, my friend Dr. Theresa Pride, who owns a great business in Atlanta called Pride Physique Pilates and Physical Therapy told me she was going to switch to Gusto based on my recommendation. She asked me if there was a referral code she could enter to make sure Gusto knew I sent her. I looked in my email and sure enough, right now Gusto offers a referral bonus to both the referrer and the referree (that could be you you).
Here’s the information:
- Use the referral link: https://gusto.com/e/adam1529 by January 31, 2020 to sign up.
- My email associated with the account is still my startup-stage email: email@example.com (not my I-started-up email which is firstname.lastname@example.org)
- When you run your first paid payroll, you’ll get a $200 Amazon gift card. And I will get a $200 Amazon gift card, too.
Don’t be afraid to start a business. Don’t be afraid to hire contractors, employees or vendors. Gusto makes it easy to pay everyone you work with over the table, tax compliant, like a real, legitimate business. And because you don’t have to worry that you are paying people the right way you’ll have more time to think about the real business of your business. Which is what you have dreamed about from the beginning.
*If you know someone who owns, or would like to own their own business, please consider sharing this with them. #ThatsALotOfOwnsInOneSentence