I would say - don’t underestimate the cost, time and extra stress involved in employing people.
You will spend much more time than you ever imagined finding, training and managing and if you have to do it… firing. Accordingly you have to make sure that you have the time which means that whatever they are bringing in covers their time + some proportion of your time + employer related overheads)
I’ve seen this a few times with acquaintances - they think if I bring on 3 employees we will be able to chuck out 4x the amount of work (me + 3 others). But thats not taking account of the overhead.
If you’re actually employing them v’s as a remote freelancer / independent contractor then
- you’ve got regulatory stuff up the wazoo (some countries more than others). Insurance, rules and regs, payroll & taxes. As just one example look at the complexity in the UK for an employer re: Maternity Pay - this happens over 100,000 times PER YEAR in the UK but its damn complex. SMP, OMP, ShPP, Average Pay during qualifying weeks, EWC, jargon here, 27.3* something there. Differing interpretations & legal precedents… damn.
(NOTE - I had no problem as an employer actually paying maternity pay, just don’t make me study for 20 hours so I know what, when and how much!).
- You must pay employees first before everything else (including of course, yourself). Doesn’t take many quiet months before your juggling credit cards!
I now think that there is a middle ‘no-mans land’ of between 1 and 5 or maybe 10 ‘real’ employees where (as opposed to freelancers) where it may not be worth the stress. Of course many would say you need to make it out the other side of this no-mans land to have a ‘real’ company.
Would be genuinly interested to hear from someone whos made it work.