If you want to make the best use of your SME’s working capital, you’ll need to be stringent about spending your funds wisely and carefully managing your resources. Having a flexible, on-demand workforce is one such way to remain agile –and means that you can tap into skill sets as and when you need them rather than be burdened with the expense of recruitment and potentially costly staff members that you don’t really need to keep in-house.

The on-demand economy is booming and as a business owner, this method of hiring promises a plethora of benefits. If you’ve never used freelancers or aren’t sure how to get the most out of the gig economy to fill your start-up’s skills gap, read on for our ultimate guide.

The freelance economy in numbers

·  According to research conducted by PeoplePerHour, around 50% of the UK’s entire workforce will be self-employed by 2020

·  A 2015 report by the platform calculated that the average business could save a total of £6,297.17 per employee, per year by hiring freelance professionals

·  According to a McKinsey study entitled, Independent work: Choice, necessity, and the gig economy, “…up to 162 million people in Europe and the United States—or 20 to 30 percent of the working-age population—engage in some form of independent work.”

Common skills

As an SME, even with capital funding, you’re unlikely to have all of the skills your business needs to thrive in house. Recruiting a freelancer to assist with a specific project, such as web development, admin, database design or programming, allows you to access global talent without the need for an expensive annual salary or investment in equipment.

According to PeoplePerHour, design, business support and web development are the most in-demand of freelance skills. It also reports significant demand for writing, marketing and PR professionals and social media experts.

Getting started – choose a platform

If you’re new to the gig economy, hiring a freelancer might seem daunting. Where do you start finding someone that has the skills you need, at the right price and can be trusted to get the job done? The first step is to register on a freelance site such as PeoplePerHour, Upwork or Fiverr as a buyer.

Creating a clear advert

Each platform will have its own specific process but, most will allow you to browse freelancer profiles and to post an advert. The key to ensuring you get the right talent for your project is to be armed with a clear job advert. Approach this like you would any other recruitment process – clearly outline your requirements, list any required skills or advantageous previous experience to help narrow down responses to only the most appropriate candidates, indicate your budget and any location requirements.

Engaging with a freelancer

When you have a pool of freelancers interested in working on your project, always ensure you review recent feedback from other buyers for each prospect. Take a careful look at portfolios and scrutinise their bid – you want to know that they have properly read the job ad and are bidding for the work in full.

Make sure you have a clear understanding of what’s included, the total cost of the work and the timeframe for delivery. You should clarify this in writing before deciding to engage with your chosen freelancer.

Working together

There’s a temptation to leave your freelancer to get on with it, especially if they are working remotely, but this can be a mistake. Schedule regular appointments to speak, either via Skype or by instant message. This will allow you to get project updates and feedback on work done so far. Regular communication and timely feedback will help your project run smoothly and can result in a better experience for both you and your chosen gig economy worker.