Outsourcing vs. On Site Employee


Many businesses still feel that they must have a "body" in the office. The mind set is, how do you supervise someone who works at home? Things are changing. Down sizing has opened great opportunities for working at home. Two of these opportunities are performing over flow work for large companies and short staffed small businesses.

This is a great chart to present to a client to show how hiring you can cut administrative cost. Because you are an independent contractor you are responsible for all of your own taxes, not the client.

Feel free to copy this chart.

OUTSOURCE SERVICE - VS - ON SITE EMPLOYEE Annual Cost
Base Salary (Apr. $14.75/hr) $30,000
Benefits 15%* $4,500
Payment for Time not Worked 13%* (vacation, holidays, sick days) $3,900
Payroll Taxes 12%* $2,100
Administrative Cost 7%** 44,100
Equipment, Maintenance & Supplies $3,900
Rent of Space for On Site Employee $2,250
ANNUAL COST TOTAL $50,250
*Source U.S. Chamber of Commerce.
**These cost assume a stable staffing situation.
High Turn over doubles administrative costs annually.
Word Processing Staff Person:
Average 40-hr/week or .0067 a Character.
$24.16/hour

MY COST: AVERAGE .0050 A CHARACTER

$20.00/hour




Word Processing:


Word Processing is just a new version of the old fashion typing service. But now with a computer and a good word processing program you can offer your clients professional documents in half the time. With a Desktop Publishing program you can offer all the extra's. Do not limit yourself. Offer many services like: business card design, letterhead design, graphics, fliers, brochures, note cards, the list is as endless as your imagination.

HOW MUCH DOES IT COST TO START A BUSINESS FROM HOME?

That depends on if you already have your computer equipment or not.
If you do, then you can get started for a very minimal amount.
The basic requirements are:
(Depending on your location)
Bus. Licenses - $50.00 - $300.00
Office Supplies - $25.00 - $75.00
Business Cards - $9.95 - $45.00**
Letterhead/Flyers- $20.00 - $50.00**
Advertising - $20.00 - $300.00
As you can see, you can get started very reasonably.
Some of the extras you will want to have as soon as possible include
a fax, transcriber (micro is the most utilized), and copier.
For your computer needs get the most powerful machine that you
can afford. While your finances may dictate how much you can afford,
remember that bigger and more powerful is always better.
**If you know how to use a Desktop Publishing Program you can
** do these very easily for yourself.

HOW MUCH CAN I EXPECT TO MAKE?

That depends on your location and your specialty. One mistake made my many word processors is to under charge to try and get the business. Granted, you might get slightly more business than those charging more, but you will be working outrageous hours for nothing. Plus, businesses will be under the impression that your services are not as professional as those charging more.
For Word processors nationwide the average rate is about $25.00 per hour.

Note: One repeated suggestion made by several word processors
was to always get a signed contract before any work is commenced.
For large projects get a deposit.
Always look at the project before you commit to it.

Turn your PC into a Profit Center

I.H.A.
International Homeworkers Association.

Word Processing Web Site
By the Author of Words From Home. Diana Ennen.

Telecommuting:

DID YOU KNOW?
Some National Facts About The At Home Professional Market: · Over 41 million people now run their own business from home · About 7.6 million people work as salaried employees (telecommuters) from home · The At Home Professional market now represents a $427 billion industry · Close to 2 million of these Professionals make six figures from home-based businesses
So, as you can see, Home Office has taken on a new meaning!

The Real Deal on Telecommuting
From another REAL WAHM

Telecommute America

Telecommuting Jobs. Employment Brought Home

Fleming LTD.
Telework Consulting

EscapeArtist
Telecommuting Overseas




Contact Wendy at W.E.Works

Return to Women Working on the Net

Return to Top