The story below was on NPR last night.  It talks about how Linda Gold reorganized her company as a result of the recession, and the new structure and what it means for workers.  You should use this example to think about how you want your work life to be moving forward.  I'm seeing these new models begin to emerge and they can give you greater control, freedom, and flexibility.  Interested in your thoughts - Dan.

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MELISSA BLOCK, host:

Today, President Obama called on Congress to pass to a series of tax changes and to make more loans available to help small businesses. Historically, companies with fewer than 500 workers have created two out of three new jobs. So, this week we're checking in with some small business owners to see how they've weathered the recession and if things have started to improve yet.

Joining us now from Santa Cruz, California is Linda Gold. She is the CEO of M3iworks. That's a Web strategy, design and maintenance firm. Welcome to the program.

Ms. LINDA GOLD (CEO, M3iworks): Thank you.

BLOCK: I gather that for your company, before the recession hit, you had 20 workers, but that things really changed for you in December of 2008. What happened?

Ms. GOLD: We did two major layoffs prior. We were down to seven employees, most of them at this point were remote to Silicon Valley. And I said to the team that I had remaining, and saying, you know, we can't continue like this. And the team actually volunteered to have me lay them all off and have them become independent contractors and form their own LLCs. And we have become a virtual company and have been successful in this model for nearly a year and a half now.

BLOCK: So they're all independent contractors working for you?

Ms. GOLD: Yes. And they're also able to take on other clients. So if workload with me isn't as heavy as they would like it to be from a revenue standpoint, they have other clients that they're doing work for.

BLOCK: And all told, how much do you figure you've saved by doing that?

Ms. GOLD: Well, I've saved at least $11,000 a month. And that's not including benefits: health, medical, dental, vision, also 401k programs. So I've saved easily 20, $30,000.

BLOCK: But for those contractors who've also lost those benefits, if they're buying them on their own now, that's cutting into their pay, right?

Ms. GOLD: Right. But they are also making significantly more per hour than they were as an employee.

BLOCK: And are they saying that that evens out or are they taking a hit?

Ms. GOLD: Yes. No, they're very happy with the way that the situation is going.

BLOCK: Even though they're buying their own health insurance now?

Ms. GOLD: Most of them have the option to have insurance through their spouse. For those who are footing the bill for their own medical insurance, which I'm doing the same thing, I think it's still an improvement in their economic situation.

BLOCK: When you look at the market for the kinds of services you offer in Web design, what's happening? Are things getting better?

Ms. GOLD: Things are improving slowly but surely. We just kicked off a new project last Friday, so that's encouraging to me.

BLOCK: You know, if the economy does recover substantially to where it was before the downturn, do you think you would go back to your old business model, have people working directly for you as opposed to independent contractors?

Ms. GOLD: No.

(Soundbite of laughter)

BLOCK: No?

Ms. GOLD: I have been so surprisingly satisfied with the way that this has worked out. I am elated at not having to deal with personnel law. And I think people are really enjoying that freedom and the flexibility that goes along with being your own boss.

BLOCK: I know you had workers that were scattered around before, but now that you're entirely a virtual company, as you put it, is there anything that's lost in that? Do you miss the physical space of an old-fashioned bricks and mortar building and the kind of collaboration that might come from that?

Ms. GOLD: I absolutely do. It's nice to have the choice to work from home or to go into the office, but it can be lonely and kind of isolating. Something is lost when you're not working with others and playing off of each other.

BLOCK: Linda Gold is the CEO of the Web design firm M3iworks. She spoke with us from Santa Cruz. Thanks for being with us.

Ms. GOLD: Thanks so much.