“Is now the right time to hire your first employee?” is a question that entrepreneurs face at some point in their lives. The business processes and limited resources tend to overwhelm startup business owners. Hiring, as an additional requirement, can be equally paralyzing. However, as time passes by and you start growing your customer base as well as your resources, hiring your first employee is worth considering.
Just when you feel that you are ready to deploy your resources, you bombard your mind with endless questions. What if hiring your first employee would be a flop? Would you be good at managing an employee? What if your only staff suddenly quit along the way?
The Advantages of Hiring An Employee
Hiring an extra hand for your business surely has advantages. These include:
- Getting the help you need to carry out your business procedures
- Breathing new life to your business and generating fresh ideas
- You’ll have someone to high five with and share the milestones of your business
The Disadvantages of Hiring An Employee
Just like any other endeavors, hiring an employee has its downsides too. These include:
- Additional overhead costs
- Extra tax forms you have to juggle
- The need for an upfront capital to onboard an employee
- Added responsibility of monitoring and managing your employee
- Stressful situations due to having another individual depend on you
While these can cause additional stress and costs on your part, weigh your options carefully. If the advantages outweigh the disadvantages, why not give in to your intuition? Why save on employment costs when you always end up stressed running a one-man business? Besides, you’ll never know the pros of hiring extra help without trying.
10 Signs That You Are Ready to Hire Your First Employee
How do you really know that it’s the right time for you to hire your first staff? Here are 10 red flags that would suggest that you should:
1. You start turning down customers
First off, you enetered into a business to acquire new customers and earn profits. So, when you are suddenly turning down new customers because you can’t accommodate them anymore, it’s time to hire for help. It is about 6 to 7 times more expensive to acquire a new customer than to keep them. When your plate becomes full, you need an extra hand to help you finish it.
2. You saw a new potential source of revenue
Your business has been doing good over the last few months. You then suddenly saw an opportunity to introduce new products or to expand. However, you cannot move forward because you can’t multiply yourself. You obviously need assistance.
3. Your customers start complaining
I want you to realize that getting customer complaints is healthy for your business. Why? Because it simply means that they still haven’t left. Now, the best thing for you to do is to make sure that you provide excellent customer service. A lot of businesses have proven that amazing customer service helps double your revenue. If you can no longer address their concerns by yourself, it’s time to get your first employee.
4. The general quality of your business is suffering
Suppose you run a pastry business and there is an increased demand for your products. You end up rushing the preparation that your customers notice the difference in taste and in appearance. Don’t you think it’s time to get help? Save your business before your customers find another better patissier.
5. You lack time to manage your business effectively
Is paperwork starting to overwhelm you? Can you no longer keep your presence online? Do you think that 24 hours a day is not enough to run your business? Then stop getting hard on yourself. Extra help can definitely lighten your load so you can focus on other important aspects of your business.
Hone Your Management Skills Today!
Running a business and managing an employee can be equally tiresome especially if you are a first-time business owner. But you surely don’t want to sacrifice your business just because you think hiring for help is expensive. Do you want to make sure that you make sound decisions? Work with a business coach today and start honing your management skills! Book your 1-on-1 coaching session with me today and let’s see how we can work together to achieve your business goals.