AHello all! I'm opening my brick and mortar bake shop with in days. Yay so excited! Locally it will specialize cookies and dessert table items, cupcakes etc. I already had several ask if I do wedding cakes or do tastings. I plan to have a list of referrals.
My question is to businesses and decorators, which option should I take?
- I'm not ready to hire additional employees. Has anyone had experience with contracting work? There are pros but I'm worried about the legal definition of contractors. If they work with my equipment they are considered employees but the fact most would be from home (we do have cottage law) may reflect negatively towards the customer. Not sure if this is the way to go regarding the IRS (I 've been searching what qualifies a contractor vs. employee).
-Should I do a referral fee type program? Not sure how this will look upon customers or how to ask wedding cake decorators for a commission type charge.
-Just have a referral list as a friendly service to my customers that everyone will benefit from?
Any thoughts or advice appreciated :)
I can't help you with the tax/legal side of things I'm afraid.
If you are looking for high quality decorators for wedding cakes, chances are they are already self employed and have lots of business, and don't need the extra work and most probably won't want to pay you a percentage.
I would start out with a quality list of referrals. If it comes to the stage where you are getting so many requests for wedding cakes that it appears a no-brainer to hire staff, take another look seriously into that.
AThanks for your input, especially about the clients they already receive. It occurred to me to find a network of wedding professionals in my community.
I'll see how much of an impact this year holds vs. Employers requirements for 2014 Baby steps for me!!!