Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

I've gone 'all temp'

Forget employees. These businesses rely entirely on freelancers. That means no taxes, unemployment insurance or labor regulation.

No unnecessary expenses

george mylonakis temp
  • Entrepreneur: George Mylonakis
  • Company: Go Global Logistics
  • Industry: Customs broker
  • Freelancers: 20

After years of working with independent contractors, I took my entire business in-house and hired 35 employees.

What a mistake that was.

I'm still going through the IRS audit because they don't believe I lost nearly half a million dollars.

For three years, we operated at a loss. My company had salespeople we didn't need making promises we couldn't keep. Our six trucks sometimes shipped half empty. Some employees were even stealing from me.

I fired them all, sold the trucks and stopped leasing warehouses.

Now I'm back to partnering with truckers who always deliver at a fixed cost. I always profit. Computer programmers we found on Freelancer.com build and manage our software. Independent shipping companies, foreign agents and warehouse owners all provide what we need.

I was paying people to sit in a chair, whether or not I got productivity out of them. Now I pay for what I get.

Editor's Note: An earlier version of this story included The Marketing Zen Group and CEO Shama Kabani. It incorrectly identified her employees as freelancers. The company maintains a virtual office and employees work from home. However, they are not independent contractors, and Kabani does indeed pay taxes on their labor.
  @Jose_Pagliery - Last updated March 21 2013 09:33 AM ET