Once upon a time, before the internet became popular, starting a business was an expensive proposition. Anyone who wanted to start a business had only a few choices: 1.) Do everything themselves, from accounting, to logo design, to answering telephones, to advertising, to customer service, to sales and marketing... or.... 2.) Spend a lot of money hiring people. Hiring personnel is the biggest part of most businesses’ budgets. Not only do you have to pay salary but you likely have to pay benefits, including medical insurance, worker’s compensation, payroll taxes, vacation pay, etc. For a small start up business owner, this is prohibitively expensive. Not only that, but you would likely be paying people a full time salary, and benefits, when you may only need them part time. or...
3.) Go to a temporary agency and hire temporary employees. This way you can have employees work only the exact number This way you can have employees work only the exact number of hours that you need them, and you are not paying for benefits, which saves you a huge amount of money. This sounds ideal, but you would pay a hefty fee to the temporary agency - if you hire someone who would normally earn $20 an hour you would end up paying the temporary agency around $40 an hour, and you’re not getting twice as much work from the employee. It would almost make sense to just hire a full time employee.
