One of the reasons my business has grown in recent years, despite the challenging economy, is because I have carefully expanded by hiring contractors to help create and support growth. Instead of pulling back on spending, which is often the first thing companies large and small do when the economy is on shaky ground, I looked for ways I could be more efficient by utilizing the services of talented contractors.

At any given time, my business runs with the help of a dozen contractors, both here in the United States and overseas. My team includes virtual assistants, editors, graphic designers, website designers, technology specialists, and financial professionals—all who work on a freelance basis.

When deciding who I needed to hire, I assessed two things: the tasks that were taking up too much of my time and tasks that I simply couldn’t do. For example, I’m not a graphic designer. Deciding to contract with graphic designers was an easy decision because it’s simply not something I’m trained to do.

For years I managed posting all the content on my website, but as I moved toward adding content on a daily basis, it just made sense to hire a content manager to review content submissions and publish them as needed. This freed up more of my time to focus on revenue-generating activities, which is always a top priority.

Hiring Overseas

The topic of hiring overseas can be a controversial one. Some people feel that we should keep our dollars here in the U.S., and I certainly agree that is important. But the fact is that labor costs far less in many other countries, and sometimes it just makes good business sense to hire elsewhere.

A few years back, I decided it was time to have BusinessInfoGuide.com redesigned. I wanted it to read more like an online magazine and also to run on more current technology (WordPress). The problem was that there were more than 1,000 pages of content on the site and having it redesigned and migrated to a new platform here in the U.S. would have cost tens of thousands of dollars. To stay within budget I contracted with a web design firm in Turkey. They were talented, efficient, and grateful for the work, and the whole project cost me about 10% of what it would have cost here at home. That is simply a good business decision.

I have also worked with a contractor in the Philippines off and on for a couple of years now. She handles various research projects for me and in return I pay her a higher-than-average rate for the work that she performs, which she greatly appreciates. Even at a higher rate than her competitors charge, what I pay her is still a bargain by U.S. standards. She also happens to be a single mom, so I get the satisfaction of helping her support her family.

The fact is that most of my team members are contractors based here in the U.S., and they are spread across the country. Thanks to technology, we can communicate and exchange files from just about anywhere. They include single moms and dads, stay-at-home moms, and business professionals who enjoy the flexibility of working on a freelance basis. But when it makes sense, I look overseas for the help I need.

An added benefit of working with various contractors around the world is the diversity it brings to my business. I was concerned that there might be challenges with language barriers and communication, but that has never been the case. The international contractors I’ve worked with over the years have brought their own unique perspectives to projects that I might not have otherwise considered.

What to Know if You Hire Contractors

Working with contractors allows me to leverage a diverse team of talented people and utilize their services on an as-needed basis. It’s a win-win situation for all involved. Aside from managing costs effectively, I also avoid the headaches of managing employees and payroll. I also don’t need any of these people to work for me on a full-time or even part-time basis. On average, each contractor works between 5 to 20 hours per month for me.

If you decide to hire contractors for your business, you should know that the labor board has some strict rules about how to work with contractors. You cannot treat contractors as employees by setting specific work hours or otherwise implying that they are employees. Also, each contractor should work for other companies aside from yours—they must truly work in a freelance capacity. It is wise to have a written contractor agreement in place, and you will also need to collect W-9 forms and send out 1099 forms to all contractors at tax time. You can learn more about these requirements on the Department of Labor website.

For overseas labor, two good choices for finding contractors are http://Elance.com and http://Odesk.com. Both services help connect freelance contractors with small businesses, and they also manage tax compliance laws with various countries so you don’t have to worry about that. Contractors listed in these directories receive reviews from those who have hired them so it’s easy to locate talented, reliable help for your business.

The bottom line is that your business will hit a threshold unless you are able to hire the help you need to keep up with growth. If hiring employees isn’t in your current plan, consider making an investment with contractors who will free you up to do more of what you do best. Smart hiring decisions should lead to greater revenues in the long run.

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I am blogging on behalf of Visa Business and received compensation for my time from Visa for sharing my views in this post, but the views expressed here are solely mine, not Visa’s. Visit http://facebook.com/visasmallbiz to take a look at the reinvented Facebook Page: Well Sourced by Visa Business. The Page serves as a space where small business owners can access educational resources, read success stories from other business owners, engage with peers, and find tips to help businesses run more efficiently. Every month, the Page will introduce a new theme that will focus on a topic important to a small business owner’s success. For additional tips and advice, and information about Visa’s small business solutions, follow @VisaSmallBiz and visit http://visa.com/business.