It’s the cart-before-the-horse dilemma. Do you hire employees to grow your business, or do you wait to hire until your business grows? For small business owners, this can be a tough position to be in. But, the truth is, you need to hire now if you want to grow in the near future. Employees are an investment, and bringing more hands on deck can pay off with more profits.
Taking on the additional expense of an employee, like a good investment, can bring excellent returns. As a small business owner, you are likely doing a lot of tasks that take you away from the work you’re good at. Hiring a new employee would give you more time to concentrate on bringing in more revenue.
When to Hire
There are many reasons business owners start to think about hiring a new employee.
- You find yourself focusing too much on nuts and bolts instead of the big picture. If you hire someone to assist you for $15 or so an hour, your time will be better spent on growing your business and bringing in additional revenue.
- When it just makes more sense for someone else to do a job you’re not good at. Maybe you’re not a numbers kind of person. Hire someone to take care of your books for you.
- You see an upward trend in sales and see potential for even more.
- You start having to turn work down because you don’t have the time for more.
Hiring employees is a lot of work initially, especially if you are hiring your first employee. It’s a calculated risk. You have to define the job and put into place required systems and paperwork that come with having a staff. You need to comply with tax and human resource laws and regulations. You might need to obtain funds in order to hire your first staff member. And you have to interview before hiring the right person.
When filling a new position, hire for the work that needs to be done. Of course, you probably won’t want to hire an unpleasant person, but it’s also important to avoid hiring someone who feels more like a friend or who thinks exactly like you do. You want the right person for the job, not a “yes” person or someone who won’t bring a new perspective to the table.
A lot of entrepreneurs retain a contractor or someone who will work as a temp-to-hire employee. This gives you both a chance to see if it’s a good fit. And you don’t have to hire a full-time employee unless you need one. Part-time might be just right.
Preparing for a Growing Staff
Unless you don’t want to see your business grow and prosper exponentially, you need to get ready for an expanding staff. If you hire someone to help you with everyday tasks, you’ll have more time to devote to this prep work, including the following:
- Write a human resource plan. Outline a map of where you see, or would like to see, your business go down the road. How many employees do you think you’ll need when business is at different stages of growth?
- Create an employee handbook. Everyone you hire will have the same information and how you treat them will be consistent.
- Write down procedures for hiring. This will be a boiler plate guide you can refer to when it’s time to bring in your new employee.
Roadblocks to Hiring
The thought of hiring employees for the first time can be stressful. It’s not uncommon for entrepreneurs who are used to doing everything themselves to procrastinate hiring a staff. Besides the paperwork and regulations, there’s the responsibility of providing an income to someone else. And many people don’t feel confident about managing employees. Consider it a learn-as-you-go job that you will get better at with time.
The hard reality is, if you want your business grow, you have to face the facts. It won’t grow without having the people in place to help make that happen. If you see growth in your business’s future, you’re going to have think, plan, take a deep breath and hire the staff you’ll need.
Are you ready to grow? If you’re thinking about hiring for the first time or expanding your staff and don’t want or are unable to tap your cash flow for your initial investment, consider getting the funds you need. Reliant Funding can help you take the step towards a successful future for your business.