I am working to expand my VA business by taking on new clients and subcontracting VA's to do the work. I would love to hear from anyone else who is doing this as I have a lot to work out with my business plan. How do I find qualified VA's? How will I structure payment with VA's? How often do I pay? How do I pay VA's ontime if clients pay late? Do I have VA's sign contracts with me?

Advice or input from anyone would be greatly appreciated.

Thanks in advance!!!

-Erica

Erica, while I don't have an answer to your questions this is a great topic and I look forward to the responses.

I hope to have this option in the near future. Although I have a few (2) ladies that am going to contract with to expand my service offerings. However, they do not have VA's businesses but great skills.

So this will help me in how to best handle these partnerships. Thanks for bringing it up.

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Monique Terrell, CEO
Sparkle Professional Office Services, LLC
www.sparkleofficeservices.com

Hi Erica,
I don't subcontract out on a regular basis, so when I do it's pretty casual and ALWAYS with VAs I know well and trust (in fact, it's been with members of this forum each time).

You're taking on a lot when you want to develop and maintain a multi-VA practice. It might be best to establish your own individual business entity first and then work to develop any permanent extensions. It's enough work just running and marketing a single-VA practice much less trying to manage other VAs.

A few of the questions you've brought up lend themselves to the crux of one major issue with subbing out in a multi practice and that is money. From what I understand (and just from my own few experiences subbing work out), the lead VA pays her subcontractors and deals with the client directly for payment. So, any late payments, or non-paying clients necessarily become your burden.

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Originally Posted by Tess

Hi Erica, A few of the questions you've brought up lend themselves to the crux of one major issue with subbing out in a multi practice and that is money. From what I understand (and just from my own few experiences subbing work out), the lead VA pays her subcontractors and deals with the client directly for payment. So, any late payments, or non-paying clients necessarily become your burden.

I agree with Tess! Any projects that I know I will be using a team member will almost always be on a retainer basis. I pay my team members on their terms no matter when my clients pay me.

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Doreen R. Patrick, MVA, ACS, CIVA
www.virtualbusinesspartners.net

I have already established myself as a VA and have been doing this for a while. I have a multiple client base that I am happy with and work well with. I keep having offers of referrals from my already existing clients and would like to take on the referrals but subcontract out the work.

I have recently turned my business into an LLC and have my dba as well.

It is good to hear that there are so many good VA's to work with on the forum! I will certainly come here when I am looking to subcontract out work.

The handling of money that Tess explained is what I thought. I am just looking to get feedback from others who have already done this.

Erica, I didn't realize you'd been in business as long as you had. Your questions were posed in such a way as to imply that you were new to the industry (at least that's how I understood it...)

That's great that you're as well established as you are and are ready to start branching out - with that in mind, you know first hand what it takes to find a qualified VA (being one yourself). As to payment structuring, etc. I'm not really in a position to provide feedback on that, but certainly others will jump in here with details if they're able.

Best of luck with your new business plan!

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Thanks for all of your help, Tess. You have been really helpful on many topics I have posted and I really do appreciate it!

Erica~

Congratulations on reaching this point in your business. It is exciting to realize that you need to partner with someone else in order to continue growing.

I work with another VA and signed her standard agreement and pay her rates on her terms, just as I expect my clients to do for me. As Doreen mentioned, when your clients pay you and when you pay your VA are two separate issues.

Warmly,

Lorri

Wow, our industry is really growing. I am but a new VA, just three months, but I'm finding myself thinking not so long term about this very subject. I have gotten 4 clients in my first 3 month of business (and this is still not my main source of income). And I have an awesome opportunity to become an "approved supplier" for a franchise, which has the potential to provide more work than I may be able to handle.

I'm a bit of a control freak so I know that I'm going to have issues with delegation, but will need to do so in order to get it all done. Screening a subcontractor is a very big concern for me -- especially since I might need 2/3 at one time. I'm really going to have to find VAs that I can trust. I thought about branching off some of the work to people I know and whom I have worked with in corporate America, but I'm not sure they will get the VA thing.. then again I did. They would need to be trained on the customized software packages of this company -- as will I. I'm sure I'll be back here with plenty of questions.

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Tamika R. Johnson, MBA, Principal
administrative partners, llc
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