I have been operating a multi-va business for over 6 years now and while I am not getting rich, I feel good that I am making somewhat of a living and helping others make a living, too.
I have 4 other VAs working for my company at various skill levels and offerings. I hire them as independent contractors (subcontractors). When I hire a subcontractor, they must have their own business, and even sometimes a business name for me to write the checks to.
One of my subcontractors who signed an independent contractor filed an unemployment claim against me with the State of Colorado and won. It still amazes me that, first, the contractor broke trust and filed the claim, and, second, that she won even after signing an independent contractor agreement. She had her own office, equipment, etc. So, just beware. That's why I'm having current and future VAs have a business name.
Thanks,
Michele Guarino
A Second Office LLC

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Business Support for the Busy Executive

Hi Rita,

It is great to see you here at VAF. I thoroughly enjoyed your take on were the options virtual assistants have when growing their business! Thank you for taking the time to post. I look forward to connecting with you more!

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Rikki Green
www.timeforlifeconcepts.com

My goal is to eventually grow to a multi-VA business. I'll be watching for more advice on how to get to that level. Thanks.

Originally Posted by ASecondOffice

One of my subcontractors who signed an independent contractor filed an unemployment claim against me with the State of Colorado and won. It still amazes me that, first, the contractor broke trust and filed the claim, and, second, that she won even after signing an independent contractor agreement. She had her own office, equipment, etc. So, just beware. That's why I'm having current and future VAs have a business name. Thanks, Michele Guarino A Second Office LLC

Oh my...
I would probably do the same, even I hadn't such lesson. Who owns business usually acts differently- they care about their business reputation and try to do the best, as it is not "I have no job at the moment, so, I'll try to be VA" case.
I do not have office, but I can show documents that I own and manage my company.

Thank you for sharing your story. And good luck with your multi-VA team

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VA for VAs
www.jadesvirtualoffice.com

Great article and thanks for the tips about the "unemployment" situation. There are so many little loopholes, it makes me sweat!! It's probably a good idea to get an attorney in your state to write up contracts, ect.

Thanks! Steph

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Your Marketing, Research and SEO assistant www.buckeyeva.com

Rita, this is a great article and even though my VA business is still in the early stages, my long range goal is to build a team of VA's with experience in other areas to build on and enhance the services I currently offer. This dicussion shows me that I am heading in the right direction with my business.

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Margie Gibson
http://mgvirtualofficesolutions.org

Originally Posted by marketingva

Great article and thanks for the tips about the "unemployment" situation. There are so many little loopholes, it makes me sweat!! It's probably a good idea to get an attorney in your state to write up contracts, ect. Thanks! Steph

Hi, Steph,

I had one of the best law firms in Colorado write up my independent contractor's agreement, and it still did not help. I was told by the unemployment person that having an agreement only puts the burden on the state to prove that the person was an employee or an independent contractor.

Michele

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Business Support for the Busy Executive

Whoa, what an awesome discussion! I love it! Thank you Rita for brining up such a vital point. Definitely gives all of newbies (or perhaps not-so-newbie) something to definitely consider. Thanks again!

Lily Daly

Thank you for posting this wonderful article. What a great insight into the benefits of partnering and working with other VAs. I too am just starting my REVA business but am looking for ways to partner with others as well.

Thanks again for posting this!

Kelly

Thanks for sharing your knowledge on multi-VA businesses. One question that I have is: say you make XX.00 an hour. What percentage do you pay the subcontractor? What is fair standards?

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Ann Blackburn

Did you appeal the Colorado ruling as far as you could?
With an HR background, I'm shocked that happened....the ramifications of that extend to tax issues.

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Cheryl O'Neil
Southern Orange County

How exciting that a thread I began in 2007 is still being discussed. To Michele, thank you for sharing your experience. It is definitely a learning lesson. I always give people the benefit of the doubt. I never would have thought someone would do that.

JadeLT, you have a good point that if someone owns a biz, I don't think they would take a chance on ruining their good name.

Ann, I don't calculate based on percentage. The fee is negotiated and based on what I consider is fair to pay, as well as what the fee is in the corporate world.

Thank you all for keeping the conversation going.

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Rita Cartwright, Founder
RJ's Internet Marketing Services

Originally Posted by ablackburn

Thanks for sharing your knowledge on multi-VA businesses. One question that I have is: say you make XX.00 an hour. What percentage do you pay the subcontractor? What is fair standards?

Ann,

When working with another VA, I have seen it mentioned in forums that the VA lowers her rate by 25% to 35% their normal rate to taken on projects. So, if a VA is charging $30 per hour, she would lower her rate between $22.50 to $19.50. I have found some VAs who would work for $18.00 per hour, depending on the project.

Best,

Michele Guarino

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Business Support for the Busy Executive

Originally Posted by Total Resource Connection

Did you appeal the Colorado ruling as far as you could? With an HR background, I'm shocked that happened....the ramifications of that extend to tax issues.

No, I did not appeal the Colorado ruling. It wasn't worth my time and effort to drive 35 minutes each way to Denver to appear in person before the Court of Appeals all day. For all of that trouble and hassle she put me through, I just went ahead and paid the $24 that it came out to.

Michele Guarino
A Second Office LLC

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Business Support for the Busy Executive

I have a large multi-VA team (3 client managers and 11 VA associates). They are all independent business owners and we work on a subcontracting basis.

I started my team because I was saddened to have to continually turn away new clients and had a long waiting list. It sounds like great stuff to many VAs but honestly, it was stressing me out! I HATE to turn away business so I had to figure out a way to either clone myself or get a team together. I consulted with a friend of mine, Michelle Jamison of MJVA, who literally wrote the book on running a Multi-VA business (called The Virtual Assistant’s Guide to the Multi-VA Business) and she gave me some ideas for setting up my team. I haven't looked back!

Now, that's not to say that it hasn't been challenging. I've had some great team members and some less-than-great, and keeping on top of such a large team certainly keeps you on your toes. I have a different set up than many multi-VA businesses with the client managers that take ownership of the client, rather than a particular VA. We offer a laundry list of creative, technical and administrative services and as was mentioned above, are a one-stop-shop. That too, provides a host of admin and management challenges. (Lots of cooks in the kitchen!)

My goal is to continue to bring in quality clients that fit my ideal client profile to keep my team busy and to spend 75% of my time on my other pursuits. (I create passive income products and have two associations, with a third on the way before the end of the year.) I'm currently at about 50% so I'm getting there!

For those of you attending the Forum on Virtual Assistance this year (FoVA) Michelle Jamison is actually leading a full day workshop on creating and managing a Multi-VA business and it promises to provide a ton of great information, inspiration and advice about looking into this structure for your own business.

Thanks for the great article and discussion Rita!

Cheers,
Pam

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Pam Ivey, Cert SBM,PREA,PREVA,CRESS,CMP
Virtual Assistant Training Academy: Training for Virtual Business Success!