The question of when to step up your game from being a business owner to being an employer is quite difficult to answer as lots of business entrepreneurs have no clue of when the right time comes. This is quite difficult to determine because every business is different, and what determines the success of one is not the same with the others.
However, when you find yourself struggling to reach the expectations of your customers – when you’re so in demand that you drop the ball and don’t have the capacity to take on any new clients – that’s a good indication you are ready to hire.
One thing you should know is that employing staff can be a bad idea for the smallest companies, but if you’re already reaching your maximum output level, it’s the only way to boost your revenues, other than putting your prices up. Two things to think about if you’re considering employing your first member of staff includes:
The first thing you should think about is whether you have generated enough money that can afford to cover the monthly salary of your staff. This is an unavoidable expenditure, and thus you should be 100% sure of what you can afford before employing.
Secondly, make sure you have you have enough work to keep them busy with before employing them. If you feel that you have money and you are a little bit stressed, but yet do not have enough work for your staff, it is a waste of time and resources. As an entrepreneur, you need to get used to feeling stressed – that part comes with the job.
If you think you’re ready to hire your first employee it is essential to spend time thinking about what your new member of staff will do on a weekly basis. You need to have a clear idea of the tasks you’ll be expecting them to complete to ensure you keep them motivated, challenged and engaged.
WHEN DO YOU THINK THE TIME IS RIGHT FOR A NEW BUSINESS STARTER TO EMPLOY NEW STAFF MEMBERS?