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How to build a team for your small business while on a budget

  • A team can be a great way to help owners of small businesses grow creatively as well as financially. 
  • It can be costly to hire and keep full-time employees.
  • Two founders discuss how to scale up your team responsibly and make sure workers are paid what they deserve.
  • This article is part Talent InsiderA series of expert advice for small business owners to address a variety of challenges in hiring.

For entrepreneurs, bUnifying a teamIt can be a thrilling step in growing a company.

Kimiko Avilez is the founder of Glow Event Management Co. and Glow Travel Group. She believes that building a strong team is crucial for the company’s success. 

She said, “I realized that I needed a team to succeed and do what I do.”  

However, Avilez — whose business was impacted by COVID-19 restrictions — is among the many founders today who don’t have hefty hiring budgets. Avilez said that by offering internships with the possibility of future work, she was able to build on her budget. 

Caroline Constas and Avilez, who co-founded the eponymous clothing brand, spoke recently at a panel of women- and minority-owned companies about building a team that is affordable. These are their top tips for building a strong, sustainable team.

One-off events require subcontract workers

Entrepreneurs can test the waters with new employees through internships. Interns may be paid school credit or financial compensation. Others work hours without any health insurance, benefits, or other expenses associated with salary. Avilez explained that there will be times when internships are over, but it is important to keep your workers as teammates.

She gets creative when faced with these situations. Her company hosts group-travel experiences and corporate events, so some days may require additional hands. Avilez employs former interns as contract workers for special events and projects when she cannot hire them full-time, she explained. 

Avilez stated that subcontracting with them allowed him to “reorient and to retain” his business.

Look for creative ways to help workers

Avilez not only pays her workers an hourly wage, but also seeks out financial opportunities to support them. Avilez automatically includes gratuity in all client contracts so that her employees can earn tips. 

Avilez stated that gratuities are not required to be paid to employees who work for him. “That’s how I’ve been able to leverage that gap.”

She suggests that other founders look for similar ways to pay workers, without having to create their own budget-line items.

Be responsible when scaling

A scaling business can be supported by additional employees, but it’s important to not rely on potential growth in employees’ salaries. Constas explained that scaling at the correct pace is crucial. 

Constas might, for example, meet someone she likes but cannot afford to hire full-time. She’ll look into other options. 

She said, “Whenever I meet someone with a lot of talent, but I’m not capable to bring them on full-time, maybe we could work two hours per week, or maybe four.”

They are incentivized to contribute their ideas and talents by being included in company work regularly, she stated. It is possible that this could be a permanent position.

She stated, “It has happened to me many time where I meet someone, and they start off in a freelance role, but now they’re fulltime employees.”

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