In present world of cut-throat competition, companies endeavor for a perfect product at minimum investment. For small firms, a limited budget is an obligation than a choice. To juggle with these two crucial balls is a difficult task. To share and address your concern, we have brought this article to find a meeting point of the two facets.

Unarguably, quality is of paramount importance. Companies want someone who can give class results at an optimum budget. Here are the options enlisted:

1.Employees

Employees are real asset to a company. They dream the company’s dream and strive to give their finest results. Unfortunately, the space for employees in a small company is limited. Small firms cannot afford high costs of hiring, maintenance and training of a new team for every product development project.

2.Freelancers:

Freelancers are commonly individuals working from home. Some of them are exceptionally skilled and ensure on-time results. However, the problem with freelancers is workload. They usually work on multiple projects at a time. A freelancer could efficiently handle all stages of a project single-handedly; though it cannot be said about every freelancer out there. You can definitely hire multiple freelancers but to coordinate becomes a strenuous task.

3.Outsourcing firms:

These companies provide a complete package as well as one service at a time. You are no longer dependent on one person and can also extract results of teamwork: win-win for you. You have access to software and tools that are constantly updated according to latest trends. You get benefits of a 24/7 availability. Also, who can beat their experience?

Now, if you have already decided to outsource your work but aren’t sure about payment methods. We have a few recommendations for you. Here is a list:

1.Fixed Price:

In fixed-price contract, a service provider is liable to complete the project within stipulated budget. Types of fixed-price contracts:  i) Fixed-firm price: It is a price that is not subjected to any adjustments. ii) Adjustable contract: This allows a minimum fixed price and further charges according to modified requirements later in the project cycle.

Fixed price payment method is recommended when the budget is fixed and requirements are invariable.

2.Time and Material Rate

This is a common method when working with a product development company. It is usually used in long-term dynamic project. Billing is done on the basis of hourly labor rates and material invested. An advantage of the method is flexibility to review and adjust requirements in the project. It is recommended for the projects with dynamic requirements.

3.Equity

This is the method where you have to pay zero cash, at least figuratively. The currency involved here is- company equity. The method is commonly used by pre-series A startups. People working for equity are more committed to making the business work. Though finalizing no-cash equity deals could be quite complex. Typically these are signed with a warrant to compensate for the risk.

Each method has its pros and cons for employee and employer alike. The right way depends on your situation. It is essential to weigh the pros and cons and embrace the one that might work best for you.

Onlilo strives to deliver quality results at reasonable rates. We help clients with their services and products. Contact us to discuss and bring forth an exceptional product.