Dan Nedelko: Recent Episodes
Dan Nedelko
Last Updated on December 9, 2023 by Dan Nedelko
I often hear in many different different business, the idea of building a team versus hiring a professional services provider and a trusted partner.
A few things to keep in mind:
- Take into account the true cost of building a team.
- Understand it’s your time and that is a never ending commitment.
- Your team may move on, resetting your resources and causing you even more time.
- Key team members may move on and then you really have to focus on their role and the impact on your business.
In the world of small business ownership, every decision can have a significant impact on your success and bottom line.
One critical decision that often arises is whether to hire an employee or partner with professional services for various business needs. Let’s disect the scenario and look at both options.
The Employee Hiring ScenarioLet’s start by considering the traditional route—hiring an employee. For many small to medium-sized businesses, hiring staff may seem like the natural progression to handle tasks like marketing, payroll, human resources, accounting, bookkeeping, and more.
The Initial SalarySuppose you decide to hire a marketing manager with 2-3 years of experience. In December 2023, the average starting salary for such a position in Ontario is around $42,000 annually. This amount, however, is just the beginning of your financial commitment.
Recruitment CostsRecruiting the right employee can be a time-consuming and costly process. On average, it takes about 42 days to find the ideal candidate. During this period, resources are allocated to the recruitment process, adding up to approximately $4,129.
Onboarding and Ramp-UpAfter hiring, the employee’s productivity typically remains low during the initial months. This period of onboarding and ramp-up can be conservatively estimated at one additional month’s salary, which is another $3,500.
Paid Time OffYour employee will likely require paid time off, which typically includes two weeks of vacation and two weeks of sick leave. This adds an extra $3,500 to your yearly expenses.
Payroll Taxes and BenefitsEmployers are responsible for payroll taxes, employee benefits, and contributions to health spending accounts (HSAs). Factoring these in, you’re looking at an additional $12,000 annually.
Software and ToolsTo equip your employee for success, you’ll need various software tools, such as CRM systems, project management tools, and design software. A conservative estimate for these expenses is $1,000 per month or $12,000 per year.
Total Cost of Hiring an EmployeeSumming up all these costs, the true cost of hiring one employee in this scenario comes to a staggering $84,649 annually, nearly double the initial salary.
The Alternative: Partnering with Professional ServicesNow, let’s shift our focus to the alternative—partnering with professional services. Instead of hiring an employee, you can collaborate with trusted partners who specialize in areas like marketing, payroll, human resources, accounting, bookkeeping, and more.
Cost PredictabilityOne significant advantage of partnering with professional services is cost predictability. You can typically negotiate a retainer fee, which remains consistent throughout the partnership, making it easier to budget and plan for your business expenses.
Expertise and ExperienceProfessional service providers often have years of experience and a team of specialists at their disposal. They bring industry-specific knowledge, best practices, and a track record of success to your business.
No Onboarding or Ramp-Up PeriodWhen you work with professionals, there’s no need for an onboarding or ramp-up period. They’re ready to hit the ground running from day one, delivering immediate value to your business.
No Employee-Related CostsPartnering with professional services eliminates the need to worry about payroll taxes, benefits, or employee-related costs. You pay a fixed fee for their expertise, and they handle the rest.
Focus on Your Core BusinessBy outsourcing non-core functions to professionals, you can focus on what you do best—growing your business and serving your clients.
Should You Hire Internally or Find a Partner?In conclusion, while hiring an employee may seem like the obvious choice for small businesses, it’s essential to consider the hidden costs and complexities involved. Partnering with professional services offers cost predictability, expertise, and a streamlined approach to meeting your business needs.
The decision ultimately comes down to whether you want to take on the responsibilities and costs associated with hiring, or if you’d prefer to leverage the skills and experience of trusted professionals. In many cases, the latter proves to be the more efficient and cost-effective solution for small to medium-sized businesses, but that’s not always the case. There are no silver bullets.
When evaluating the true cost of hiring versus partnering, it’s clear that the value of professional services can far outweigh the expenses of hiring and maintaining an employee.
As small business owners and entrepreneurs, we should always be building a network of trusted advisors and service providers to help us navigate the challenges of growing our businesses.
The post The True Cost of Hiring vs. Partnering with Professional Services for Small Businesses first appeared on Dan Nedelko.
Last Updated on November 30, 2023 by Dan Nedelko
What’s the difference between a Partner and a Service Provider as it applies to professional services? Specifically Digital Marketing or Software Development?
There are some major differences IMHO…let’s dive into it.
Partners are part of the process, involved in the conversations as they are developed. Partners are on the team and involved in the development of strategy. Pro tip: when you engage a partner, engage them in your desired outcome not in the task at hand. If you’ve got a good partner, then they’ll use their experience to work with you to achieve that outcome.
Service Providers are not distinctly part of the process. They’re valuable in their own way, but they are not strategic. Service providers provide a specific task, complete that task and move on to their next project.
Each type of professional service; whether it’s a partner or a service provider fulfills a specific need and one is only superior to the other within the context of the bigger picture.
The danger? In asking for a partner when in fact you really want a service provider. That can get messy for both sides of the equation.
Enjoy this “sort of” Transcript.
Introduction: In today’s episode of The Drive, Dan Nedelko dives into a crucial distinction that often gets overlooked in the business world: the difference between a partner and a service provider. He emphasizes the importance of choosing the right term because words matter, especially when it comes to defining the relationships within your service-based business.
Defining Partners and Service Providers: Dan starts by clarifying that the definitions of a partner and a service provider are worlds apart. Service providers are there to fulfill specific requests, complete tasks, and move on. On the other hand, partners engage in a more profound relationship, actively participating in the process, and sharing their expertise and experiences.
Digital Marketing: Dan delves into the realm of digital marketing and explains that distinguishing between a partner and a service provider is crucial. Partners should be deeply involved in the client’s internal dialog, helping them understand the intricacies of their strategies. While service providers fulfill tasks efficiently, they may not contribute to strategic discussions.
Software Development: Shifting gears to software development, Dan points out that the choice between a partner and a service provider depends on the client’s technical infrastructure and needs. If you need specialized technical skills, a service provider might be suitable. However, if you seek a comprehensive understanding of how technology aligns with your business goals, a software partner with a broader experience is essential.
The Power of Partnership: Dan underscores the value of partnerships, where both parties work collaboratively to achieve desired outcomes. Partners bring a wealth of experience and want to see your business succeed. When the partnership is genuine, it becomes a powerful force for growth.
Conclusion: In closing, Dan urges listeners not to confuse partners with service providers and warns against misusing the term “partner” when seeking specific services. He emphasizes that choosing the right word is essential, as it sets the tone for the relationship.
Final Thoughts: In the best-case scenario, a partnership is a true collaboration, while a service provider fulfills a specific task. As you navigate the world of business relationships, make sure you choose the right partner or service provider based on your unique needs and goals.
Outro: That’s it for today’s podcast. We hope you found this episode enlightening. Stay safe out there, and remember, words matter in defining your business relationships.
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Last Updated on November 26, 2023 by Dan Nedelko
Welcome back to The Drive with me, Dan Nedelko. Join me to learn about Business and Growth for Small Business. It’s practical, snackable, pragmatic and hopefully helpful.
In this welcome back episode I’m explaining a bit about my perspective on Business and what value I can convey to you in the rejuventated verion of The Drive.
Join me and I’ll be talking about:
- Business – running a small business as an Entrepreneur.
- Marketing – how can you make practical marketing decisions that will serve your business well.
- Technology – what can you do to leverage technology to your benefit.
- Finances – how to make the right moves FOR YOU right now.
- Government Regulation and Taxes – dealing with our glorious leaders in government and taxation issues that can protect you, your business and your family.
- Sanity – maintaining relationships while running your business.
- Peace of Mind – making sure you’re taking care of the most important person in the equation. YOU.
- Efficiency and Productivity – I’m NO guru but I’ve learned a few tricks about being efficient. When I’m efficient, I’m happier and more productive.
Thanks for being here. Remember: you know more than you realize.
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I’ve been an entrepreneur for many years, it’s chaotic, hectic, painful, stressful, fun and rewarding – if I’m lucky I might even make some money at it. That’s where I’m personally at today, and again it’s ok. After one of those extremely hectic days recently, me and one of my partners decided to grab a […]
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Last Updated on September 13, 2019 by Dan Nedelko Planning for marketing versus a marketing plan I’ve decided to resurrect my podcast in order to be more relevant to a wider audience, in addition to it being easier and more convenient for me to record a short ten to fifteen minutes podcast on my drive into the […]
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What happened in the world of Digital Marketing in 2016? How did Google, Facebook, Twitter and the general state of social media evolve? Here's what we need to keep top of mind as Digital Marketers going into 2017.
The post The 2016 Digital Marketing Recap: The Marketing Drive ep22 appeared first on Dan Nedelko.
Watch and learn how to reduce your Pay Per Click campaign costs, create a highly engaged lead list and increase your conversion and retention rates. Making this happen simply requires an understanding of how a lead and conversion list can be set up to reduce costs and increase your long term conversions.
The post Building Leads and Developing Relationships Using PPC Channels : The Marketing Drive ep 21 appeared first on Dan Nedelko.
AdWords Quality Score, is going to be an-going topic of conversation on The Marketing Drive. We'll be discussing why it's important for all marketers from the executive levels to the most junior intern to understand the importance of this score.
The post AdWords Quality Score Talk : The Marketing Drive ep 20 appeared first on Dan Nedelko.
Last Updated on September 13, 2019 by Dan Nedelko Share on facebook Facebook Share on twitter Twitter Share on linkedin LinkedIn Share on reddit Reddit Share on whatsapp WhatsApp Setting your digital marketing campaigns into one of three main types will help you maintain your sanity and provide clear goal posts for your team. Misunderstood campaign […]
The post Why You Need To Classify Your Digital Marketing Campaigns : The Marketing Drive ep 19 appeared first on Dan Nedelko.
10 AdWords and PPC optimizations you can implement right now. These tips are perfect for PPC marketers, or business owners and marketing teams who hire PPC consultants or agencies.
The post Practical PPC and AdWords Optimizations : The Marketing Drive ep 18 appeared first on Dan Nedelko.
Marketing strategies and tactics are often confused. Here are some tips that will help you to lay out Marketing strategies clearly, assigning tactics to them, then completing the circle by integrating that process into your reporting cycle.
The post Mapping Marketing Strategies & Tactics : The Marketing Drive ep 17 appeared first on Dan Nedelko.
Facebook has been on a tear recently, they're definitely on track to "eat the world". I've found that Facebook also sports one of the highest conversion rates of all channels when you've developed an engagement plan (a.k.a defined funnel and plan). In today's Marketing Drive, we'll be talking about why this feature is so great and how you can roll it out.
Hint Giveaway: it's Facebook Groups and they're very powerful!
The post Facebook Groups The Feature No One Really Talks About : The Marketing Drive ep 16 appeared first on Dan Nedelko.
It’s easy to sugar coat our marketing campaign results. No one likes reporting on less than “up and to the right” results. As Marketers, we have to be careful not believe our own sweet little lies...
The post Sweet Little Marketing Lies : The Marketing Drive ep 15 appeared first on Dan Nedelko.