Protecting Yourself in the New Economy

The new business model of the aughts (years between 2000 and 2009) has provided plenty of new opportunities for business owners, and operators, but it's also increased their exposure to risk in several ways. Good risk management involves knowing what tools are at your disposal and knowing how to use them.

Imagine for a moment that you are a hiring manager for a small to medium sized business. Small businesses that don't have access to big lines of credit or don't have the cashflow to manage big payrolls often rely on the use of contracted or 'outsourced' labor. This is a very flexible and scaleable model of employment, but the opportunities can also be a source of problems.

Miscommunication, misunderstandings, are only some of the more benign difficulties of using off-site workers that anyone who uses contractors will quickly recognize. On the other side of the phone, hassles with collecting fees, ensuring compliance with local codes and damages caused by third parties can be part of the territory.

You can protect yourself with a good contractor agreement that includes at least, a non-disclosure agreement to protect your confidential information.