As a small business, it is not always possible to hire all of the employees you think you may need. But this can be ok. Hiring independent contractors or consultants instead can be beneficial. You will get their special expertise, you will use them only as needed, you will save on tax contributions and benefits, and you will have flexibiity in the relationship.
It is critical, however, to carefully document your agreement with each independent contractor or consultant. Failure to do so could result in serious tax consequences. Also, if the relationship involves the development of a product, software, book, manual or intellectual property, to name a few, your agreement should set forth the rights you expect to retain in the final product.
Having employees is great, but independent contractors and consultants can often fill a specific need.