Class A General Contractor In Virginia • Explore your financing up to $250K

Published January 26, 2023

7 Benefits of Subcontractors

How do you create compelling presentations that wow your colleagues
and impress your managers?

Introduction

What if one simple change could transform your business for the better?

Most businesses rely on regular employees to perform daily tasks and to help the business grow. However, an increasing number of businesses (including our own) have started relying on subcontractors rather than employees.

This is a game-changing move that can improve your business in a number of ways. However, many entrepreneurs and business owners don’t know much about how subcontractors work, much less how subcontracting can boost their business.

Interested in how subcontractors are the key to business growth? Keep reading to discover our favorite benefits of using subcontractors!

What Are Subcontractors?

A subcontractor is someone who works for a primary contractor to work on specific jobs. Subcontractors are typically more specialized than either contractors or regular employees.

It’s easy to understand the differences between subcontractors vs employees. Your employees are those who have long or ongoing contracts and who receive a full salary and benefits. By contrast, subcontractors are outside workers hired only to complete a specific task, and they often do so in different locations and on different timetables than the rest of your workers.

Many businesses that have a regular pool of employees still rely on subcontractor work to get important work done. But you can receive even bigger benefits by relying on subcontractors rather than standard employees.

Don’t believe it? Let’s take a closer look at the benefits!

1. Take On Larger Projects

When you run a business, you come up with big ideas for major projects your business can undertake. However, you are often limited by both the number of employees you have and the skills they bring to the table.

With a traditional business, you’d need to work for many years to build that business up, hiring more employees and taking on bigger projects where you can. But if you use subcontractors rather than employees, you can focus on larger projects whenever you want to.

Instead of paying for all those salaries and benefits, you can hire as many subcontractors as you need whenever you need them. This allows you to focus on whatever projects will best contribute to your business growth, helping you to leapfrog over the competition.

2. Easily Adapt to the Economy

Perhaps the worst part of running your own business is worrying about the economy. Countless businesses suffered due to events such as the 2008 financial crash, and it often seems downright unfair you are at the mercy of economic forces you can’t control.

While you can’t control the economy, you can control how much it affects you by using subcontractors rather than employees. For example, if there is an economic downturn, you just hire fewer contractors. When things pick back up, you just pick the phone back up.

In this way, both you and your business can better adapt to changing economic forces.

3. A Cost-Efficient Solution

We’ve already touched on this, but it’s worth focusing on this major fact: using subcontractors rather than employees will save plenty of money. In fact, this is the most cost-efficient solution to many of the challenges facing your business.

The primary reason for this is that you don’t have to pay the salaries and benefits of full-time employees. Additionally, when you rely fully on subcontractors, that means you can work out of your home instead of spending a small fortune buying specialized equipment and renting out a professional office space.

4. Save On Capital Investment

When you’re focused on business growth, it’s important to focus on capital investment. How much you can invest and where you invest is often the difference between your business growing or your business losing ground to the competition.

Think of subcontracting this way: for every dollar that you aren’t spending to employ a full-time staff, you have an extra dollar that can go towards your capital investments. And this is particularly important for any business worried about losing ground to the competition.

5. The Right People For the Right Job

So far, we have focused mostly on how relying on subcontractors vs employees can help you save money. However, it’s also worth noting that subcontractor work helps you get the right people whenever you need them.

For the most part, subcontractors are specialists. This means that when you need to get something done, you can hire the best of the best to complete it.

When you have only your full time staff, you are limited to their current skills unless you want to invest in expensive employee training programs. Subcontracting helps you save money on both salaries and training programs, and you can subcontract out different jobs to different people as needed.

6. Optimal Productivity

For most business owners, the most important thing is employee productivity. The harder your employees work, the more they can help your business grow.

However, it’s an open secret that employees are only productive for so many hours per day. In this sense, you are effectively losing money by paying someone to work eight hours and getting less (sometimes far less) productivity out of them.

Subcontractors work only on specific projects and only as long as you need them to. And when you rely entirely on subcontractors, your business will be more productive than ever before.

7. No Long-Term Commitment

The final benefit of using subcontractors vs employees is very simple: no long-term commitment. When you hire employees, some may have long-term contracts. Depending on the contract, you could end up firing someone and still have to pay their salary until the contracted term ends.

With subcontractors, there is no long-term commitment at all. You never have to use the same subcontractors if you don’t want to, and there are no long-term contracts to worry about.

Ultimately, this is a win/win for your business. You get specialized help for a fraction of the cost of full-time employees, and you can work with the subcontractor for however long (or however short) you want to.

Renovate Your Kitchen With the Best Subcontractors Today!

Here at Explore Kitchens, we put our money where our mouth is. That’s why we rely on subcontractors to help bring your renovations to life.

Want to discover what our subcontractors can do for you and your home? All you have to do is contact us today!

 

Client Testimonial

 

Conclusion

Explore Your
Remodeling Journey

Reach out to us with your ideas and questions. Our team is ready to connect with you and bring your dream space to life

Contact Form