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What three things do Air BnB, Uber and Deliveroo all have in common?

Oh, go on then, we’ll tell you…

  1. They’re all market leaders in their own little commercial niches
  2. Their concepts are working (and lucratively too)
  3. They’re all operating via the modern gig economy model

The best news?

You don’t have to be a big national or international brand to be reaping the rewards of gig-style employment.

Before we get into all that good stuff though, let’s first answer:

What is the gig economy?

The gig economy is basically two fingers up in the face of traditional working life. It hollers “down with the 9-5” and overthrows any notion that a salaried job is the solitary route to success.

Standing under its umbrella is essentially anybody who earns a living (or pays a wage) on a job-by-job basis, going from various gig to gig rather than committing to one employer or role.

Benefits of the gig economy for workers:

Gig culture enables those who choose its flexible and adaptable path to benefit from:

Sounds like a pretty sweet deal, right?

It’s not such a bad thing for small business owners and SME employers either, contrary to popular opinion…

How will the gig economy impact small business owners?

Let’s not dance around the fact that the gig economy is going to prise employees away from permanent roles, which will, of course, have an effect on businesses of all sizes.

However, if you dig a little deeper, there are a number of pros that SMEs will be able to benefit from as gig culture continues to gain momentum:

Tailor headcount to seasonal highs and lows

Business is a rollercoaster of ups and downs. You can have times when you’re rushed off your feet and need all hands on deck to tackle an abundance of briefs and projects.

On the flipside, there will be periods when business seems quiet and you don’t need quite as many people in your workforce.

The gig economy enables you to adapt and change with these fluctuations.

Lower overheads

Not having a permanent body of staff coming into the office each and every day means you’ll also be able to cut spends in terms of overheads.

Things like furniture and stationary requirements, electricity and gas, actual floorspace and the water bills can ebb and flow rather than be a constant expense.

Gig culture also means employers will be able to consider smaller and more flexible tenancies such as co-working spaces.

Hire according to expertise

One of the most prominent beauties of hiring from the gig talent pool is that employers can cherry pick real experts with consistent experience and niche skillsets.

A direct benefit of hiring these field specialists is that employers will be able to dramatically reduce time and money being invested into staff training.

If you’re considering the leap of faith into freelancing or fancy seeing what all the gig economy fuss is about, you might need some help keeping your books in order.

 

Get in touch with our team of qualified accountants to find out how we can help you stay tax efficient and keep HMRC off your back.

About The Author

Karl Bilby

We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!

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