How to Hire and Manage Freelancers Without Getting Ripped Off: A Guide for Small Business Owners

As a Small Business Owner, you are expected to be a jack of all trades. Juggling responsibilities like managing financials, customer strategy, sales and product development. However, trying to do it all typically leads to burnout. This article will go through some key aspects you must consider before you hire and manage freelancers.

With limited resources, you can’t afford to waste money when outsourcing business functions. Having a clear understanding of hiring and managing freelancers is a critical skill of a business owner. The key to getting a return on your investment from freelancers is detailed planning, clear communication and strategic management. Getting help will scale your business sustainably. Leveraging expertise in areas that’s outside your core competency is usually a wise move, if done right.

Know Precisely What You Want

Being clear about the outcome is the first and most essential step in hiring a freelancer. Set them up to respond to your job ad appropriately by describing your current situation, followed by the outcomes you’re looking for. Make it quantifiable where possible; for example, instead of saying I want to increase my website speed, you can say something like, “Site loading time should be under 2 secs”. Defining measurable goals protects both parties by removing ambiguity. It also sets a benchmark for evaluating their performance. 

Provide the Right Incentive

Treat your initiative as a structured project. This approach will help you avoid hiring for ad-hoc tasks and throwing money down the drain. Put in the work to understand the cost vs benefit of getting the job done. Ensure your budget is realistic for the outcome you require. You get what you pay for. Low-balling often leads to low-quality work and poor outcomes. Keep in mind that money is not the only incentive you can provide. Freelancers work for testimonials and the possibility of long-term engagement. Make sure you mention that in the job advertisement. 

Shortlist Candidates and Conduct Interviews

Don’t take shortcuts during the hiring process. Sometimes, the need to fill the role can be urgent, but “do it properly or don’t do it at all”.

Don’t rely solely on online reviews and recommendations. Word-of-mouth reviews are better than online reviews, but even they are good enough by themselves. Prepare a list of interview questions and pay close attention to the answers. Refrain from judging them on the length or speed of responses but rather on how aligned the answer is to the question being asked. Imagine if you had to explain yourself over again each time. Look for someone that “gets you”. Be wary of vague responses. Value honesty and further questioning.

Honest applicants have not hesitated to say “I don’t know” when it’s outside their expertise or have requested further clarity before firing off answers. 

Do a Trial Run Where Possible

After putting in considerable effort during the hiring process, you are still not sheltered from getting ripped off. Start small and do a trial run where possible. Present the freelancer with a small or scaled-down version of the task to complete for a portion of the overall budget. A trial period allows you to see how they respond to feedback, handle deadlines and think outside the box. This step is crucial in avoiding potential mismatches. Once they have proved themselves, you can gradually increase the goal. 

Maintain Open Communication and Track Progress

Once you have found who you think is the right person, set clear expectations and timelines. Maintain open communication and set up regular check-ins and channels for them to update you. Remain approachable and open to questions. You’re better off getting questions than guesswork.

Run it like a Project

Project Management principles enable you to go in with a clear objective and ensure you get your money’s worth. It provides you with the structure to provide direction and track against it.

Project Management tools like Trello or Asana (you can use a free version for smaller gigs if you are starting) play a significant role in breaking down and prioritizing work. This maintains accountability and keeps your finger on the pulse. It also builds trust and ensures that both parties are on the same page throughout the project. 

Have a Written Agreement in Place

A written agreement describing the milestone or project is crucial when you hire and manage freelancers. An excellent way to be detailed is to break down the project into tasks. Each mapped to target dates. Keep it simple, but don’t overlook this step. Ensure the freelancer agrees to all the tasks before commencing the work.

Send me an email, and I’ll reply with a template you can use to outline your project. I’ll also give you the AI prompt I use to write my job ads on Upwork (tip: Upwork typically has higher quality workers than Fiverr). No cost to you. 

Maintain Long-Term Relationships

High-quality freelancers are hard to find. When you do, work hard to keep them. This will save you considerable time and effort in hiring, managing and retraining someone new. Be flexible and keep up your end of the agreement. Building these strong working relationships will lead to mutual trust, smooth collaboration and ongoing business success.