Or: Avoid the Employee Mindset 1. Avoid thinking like an employee yourself. 2. Avoid paying people who think like employees. 3. Convert the best people you know away from thinking like an employee. The people who want to quit their jobs and start a business are the people you should pay. What makes the difference, legally, between an employee and an independent contractor? Let's ask the law. From [irs.gov](https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-defined): > The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. > You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done). This applies even if you are given freedom of action. What matters is that the employer has the legal right to control the details of how the services are performed. Fortunately, this is _exactly_ how to run a successful software team. Control the result, and the quality of it. Don't try to control how they get there. Sticking to this principle will guarantee that you get exactly what you want without falling into the trap of micromanaging. If you as a business owner have more fine-grained opinions about how the software should work, then by definition, you're qualified to write it yourself, and you should. So avoid the employee mindset, both in yourself and in those you hire. Find ways to give value to others while working for yourself, and teach others how to work for themselves while giving value to you.