As you know, Marketers Mojo is all about building a business you LOVE. You might also know that for over three years now I’ve provided internet marketing services to small business owners online.

I went through a lot of growing pains while providing services and I went through a time where I was burnt out because I hadn’t put enough thought into setting the boundaries of employee versus self-employed.

You see, if you are a virtual assistant, freelancer or any type of service provider you will find that many people will want the best of both worlds. They’ll want to hire you as a contractor but treat you like an employee. If you don’t lay out the groundwork in the beginning it can become very confusing to both the client and yourself where the boundaries are and what you will actually do for them.

I came across a guide by the Government of Canada called Employee or Self-Employed and it contains some great questions to ask yourself as a service provider to decide if you are actually set up for your optimum benefit as a self employed business owner.

Becoming Self Employed as a Service Provider

Make sure you set yourself up right from the beginning. Becoming self employed means you are in charge. Don’t allow clients to run your business, that’s your job.

Now I’m not saying this to scare you off clients. Don’t get the wrong impression here. Clients are looking to get the best service they can for their money and they’re not overly concerned about whether they’re hiring you as an employee or a contractor – they just want results. That’s why it’s your job to lay it out and determine ahead of time how you will work.

How can you tell if you’re self employed or an employee?

If you are providing a service right now, ask yourself these questions:

1.Who has the control?
Client – You’re an employee.
You – You’re self employed.

Who controls how and when the work is completed? Who sets the project timeline? If your client is making these decisions then you are in what would be consider more of an employee role.

As a self employed contractor it should be up to you how the duties are carried out beyond the initial project acquisition.

2. Who provides the tools and equipment?
Client – You’re an employee.
You – You’re self employed.

Do you provide the tools and equipment needed to do the job? Most virtual assistants have their own computers and software to complete the job for a client. If that is the case you are most likely self employed.

If, however, you are going to the client’s location and using their equipment this starts to get into a grey area where you may be considered an employee.

3. Can you subcontract work or hire assistants?
Client – You’re an employee.
You – You’re self employed.

Many virtual assistants get to a point in their business where they take on subcontract team members to help them get the work done. This is something a self employed contractor would do.

If your client does not allow you to hire contractors and only agrees to you doing the work then this is an employer-employee situation.

4. Do you take the financial risk?
No – You’re an employee.
Yes – You’re self employed.

Employees don’t take financial risks. They normally get paid for exactly the number of hours worked.

Self employed business owners do take the financial risk. When you quote for a project you are taking the risk that the time may go over and that you work at a loss.

5. Are you responsible for investment and management?
No – You’re an employee.
Yes – You’re self employed.

An employee doesn’t have the responsibility of investing in the business to get more work. They typically just show up and work.

Self employed business owners will need to invest in their business marketing, equipment, and more while also managing the business to ensure it continues to grow.

6. Do you have chance of profit and risk of loss?
No – You’re an employee.
Yes – You’re self employed.

Again, employees risk no loss and have no real chance of making anything more than their ‘wage’ for profit. A self employed person takes the chance of losing money or making a greater profit.

Getting real clear on where you stand in your service business will make you a strong, supportive resource for business owners. People will respond to your clarity and respect your services because you know what you provide and how you provide it.

In the end, it’s all about providing excellent service in a way that supports your life and allows you to run the business you love.

p.s. In my three years of working as a virtual assistant I’ve learned a trick or two about avoiding burnout, finding amazing clients and keeping your work in check. Sign up for the free mini-course 7 Secrets to Successful Virtual Assistance to find out how you can do it too!