How Your Startup Can Make the Most of Contractors

If you’re building a small business, freelancer workers of all kinds have a lot to offer you. You’ll find an arrangement that works for you with an independent contractor agreement template at your fingertips. In this blog, we’ll show you how to make your startup more efficient by managing your contractors correctly.

How Contractors Help Startups

This relationship can be incredibly productive — but only if you and your freelancers are on the same page. These arrangements are better for new firms because they give you access to a skilled, on-demand workforce. This helps you get started on major projects much more quickly.

Full-time employees require more office space and various benefits that would come out of your own pocket. This might not be cost-effective (or even possible at all) in your company’s current state. Freelancers let you grow the business over time — while delivering a quality service in the process.

Contractors could even work in addition to your full-time team. If there are delays or shortfalls in your newest project, for example, you can hire freelancers to pick up the slack. This workforce is also entirely scalable, meaning you can adjust how many people you hire to fit each situation.

The Importance of Onboarding

Startups also choose contractors in part because of the lower admin requirements. However, it’s still important that you work with them to explain your project and the role they’ll play. Clarifying this early on with a robust onboarding process will help you avoid errors further down the line.

Even as a small or new company, you’ll need to develop standardized onboarding. The way you explain your projects to freelancers will naturally affect how they work. For example, if they don’t know the scope of work on an office-building job, the end result might not be to your taste.

The contractors may also work closely with you and your internal teams. Making sure they have the full picture of your values can help them fit into the company culture. This will foster a better working environment and even give your contractors a better idea of how to meet your needs.

What Your Written Agreement Needs

To get the best work possible from your contractors, you’ll need an agreement that’s fair to both sides. Beyond the normal freelance rules, there are also some extra clauses and conditions that can help. These include:

  • Clear deliverables: When setting out the scope of work, clarify the deliverables or KPIs you’re looking for. This prevents scope creep and highlights the worker’s main targets.
  • Training opportunities: If there’s training available at your company, mention this in the contract. If the freelancer uses this, they’ll get a better understanding of your processes.
  • Flexible hours: You might want to offer flexible working hours if this is possible for your company’s current setup. Contractors will appreciate you accommodating their schedule.
  • Point of contact: Designate somebody for freelancers to go to with any questions. This streamlines communication, letting them always get the answers they need.
  • Non-solicitation clauses: These clauses forbid a contractor from ‘poaching’ employees or clients from your firm. This can also stop them from selling the company’s secrets.
  • Change requests: Outline the processes for requesting edits to the freelancer’s work. It helps to offer compensation if you ask for more than one or two changes.
  • Dispute resolution: Many people avoid this section, only to regret it later. If you prepare for a dispute, you might be able to salvage your relationship with the freelancer.
  • Full termination conditions: You may already have this in your document, but it has to be detailed. This can prevent misunderstandings while establishing clear boundaries.

Communication in Contractor/Startup Relationships

Your startup can only thrive if you communicate with your workers, whether they’re full-time or a freelancers. This could manifest as setting specific deadlines and progress milestones. Use tools such as Slack or Trello to seamlessly collaborate with freelancers and even ask for updates on their current progress.

You should also be immediately upfront about any changes to a project. Transparency is key for any productive business partnership. This will also give your freelancers more direction on how and where they can focus their efforts. You’ll need to keep them in the loop just as much as your full-time staff.

Building an efficient company means being honest with your feedback. If your contractors aren’t meeting your expectations, such as by not meeting your agreed-upon KPIs, it’s worth bringing this up. These are tough conversations, but they’re necessary to figure out the best way forward for the business.


You can bring your enterprise to new heights by hiring contractors. However, you’ll need a strong freelance worker agreement to guarantee both parties deliver their best. Managing your freelancers effectively will give them the tools they require to bring every project of yours to life.

Lucas Anderson

I'm Lucas Anderson, an IT consultant and blogger. Specializing in digital transformation and enterprise tech solutions, I write to help businesses leverage technology effectively.