When starting your own business, you like most Small Business Owners are sometimes your business’s only employee. But as your business grows you will need to find people to work with and expand the scope of your operations. While deciding the timing of this decision may be tough, it is important that you recognise when the right time arrive. Before you embark on hiring your first employee or even the hiring process, be sure to examine and evaluate the following factors: 1. Is the Hire Necessary? Hiring someone to work for you can be a tempting prospect. Before you explore it further, you need to take a look at your present situation. Clearly justify, even if only to yourself the reason you are looking to hire- do you have enough business and potential business to warrant another person? A new hire could halve your time on certain tasks but you will also be required to manage, supervise and train them. As with all your business decisions, ensure that the decision to hire is not influenced by the fact that you could be currently overwhelmed. 2. Review your Finances A decision to hire your first employee comes with the added responsibility of having to pay a regular salary. Step two is to see if you have the finances to afford to pay someone to work for you. While you may be tempted to forecast future earnings based on your new hire, it is important to be prudent and remember that there will a certain amount of learning time for any new hire which will reflect in your earnings. Be sure you have the finances to cover at least six months of an additional salary before you hire. 3. Determine the Position While most entrepreneurs would love to hire clones of themselves to perform a wide range of tasks, it is important to narrow down the scope of the position before hiring. Different people will have different experience levels and skills, try and find a hire that most suits your business needs, has the potential to grow and compliments your own skill set. Take time out of your schedule to determine which area you most need another person. Create a full picture of the job you are planning to offer before sitting down to write the job description. 4. Do you have the space? When starting out, you might be working out of your home. When hiring a new person, you will need to consider whether it is feasible for them to work there as well. What may seem like a normal and routine in your home, may feel disruptive and intrusive to another person. Make sure you are able to provide your new hire with a clean, professional work space and also the required infrastructure that is necessary for them to do their jobs. If moving out of your home is not an option that is feasible, you could formalize your home work space and create a home office. For this, it will be important to sit your family down and create new ground rules and boundaries for your office space. While you will eventually need to hire your first employee, it is important to stay calm and be introspective before taking the plunge. You can set the tone and rate at which you see your business growing and create a path to success for your business with the right first employee.
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Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.