Scaling your business: Freelancer or first employee?

A question I get asked a lot is from business owners who need help in their business is should they use a freelancer or employ someone. 

 

As your business grows, so does your to-do list. At some point, you’ll find yourself needing help but how do you decide whether to bring in a freelancer or make your first official hire? Both options come with pros and cons, and the right decision depends on your business model, workload, and long-term goals. 

 

Here’s a breakdown to help you to consider your options:- 

 

Pros: 

 

Cost-Effective (in the short term): Freelancers don’t come with the overhead costs of employees. There is no employer national insurance to pay or pensions, or holiday pay. You pay for the work you need, when you need it. 

Flexibility: Need a designer for a one-off brochure or a copywriter for a new website? Freelancers are ideal for project-based or ad hoc work. 

Specialised expertise: Freelancers often bring deep expertise in a niche area. You can tap into high-quality skills without a long-term commitment. 

Low commitment: If it doesn’t work out, parting ways is simple and quick, without the complexities of employment law. But make sure you still have a contract and are clear about what they are delivering for your business. 

 

Cons: 

 

Limited availability: Good freelancers are in demand. You might not be their only client, which can affect turnaround times. 

Lack of loyalty: Freelancers are not embedded in your business. They might not go the extra mile or share your long-term vision. 

Onboarding time: Every new freelancer needs briefing. There’s a learning curve with each one, and they may not fully understand your brand or values. 

 

Pros: 

 

Commitment and continuity: An employee becomes part of your business, learning the ropes and contributing consistently. They’re invested in your growth. 

Team culture: Building a team creates shared values and a sense of belonging. You can shape your company culture from the ground up. 

More control: You have more oversight of an employee’s priorities, time, and development. This can boost productivity and consistency. 

 

Cons: 

 

Higher costs: Employees come with added responsibilities including national insurance payments, pensions, holiday pay, sick leave, and potentially equipment or office space. 

Legal obligations: Once you hire, you're subject to employment law, from contracts to grievance procedures and health and safety requirements. 

Less flexibility: Scaling back is harder if work dries up. Dismissing an employee requires a fair and legal process. 

 

Go Freelance If: You need specialised help for a defined period or project, or your workload is inconsistent and unpredictable. 

Go Employee If: You have consistent, ongoing work that requires a reliable person who understands your business inside-out and you're ready to invest in long-term growth. 

 

Your first employee is a milestone and it’s a sign your business is growing and evolving. But it doesn’t have to be a leap into the unknown. Many business owners start with freelancers to manage the early stretch and shift to hiring when stability and scale become the priority. 

 

Whatever route you choose, be intentional. The right support can move your business forward with confidence and clarity. 

 

If you need help and advice - contact me. I can work with any business from one employee-250 

 

Always happy to help and advise you and ensure you are compliant.