Is It Really Time to Start Hiring Staff?

The goal of most business owners is to grow the operation to the point that employees become a necessity rather than a luxury. Even so, choosing to hire staff is not something to be taken lightly. Depending on the current status of the business, it may or may not be time to come up with job descriptions and start placing ads. Here are some points to consider before hopping on the hiring bandwagon.

What’s the Real Motivation for Hiring Staff?

What has prompted the entrepreneur to consider the idea of hiring one or more employees? Could it be that the weight of doing everything alone has gotten to be a little much? Perhaps the entrepreneur has reached the end of his or her abilities and needs someone with a different skill set to come in and take care of some emerging needs. Maybe the whole reason for hiring a couple of employees is because the entrepreneur is sick and tired of working around the clock seven days a week.

All of these are valid reasons for adding staff to the operation. The point is to be clear about the reason or reasons for the action. Those reasons will play directly into how the hiring process is structured.

Is It Financially Feasible?

While the desire may be there, what impact will hiring employees have on the company? Specifically, is the company positioned to absorb the financial impact? While it’s true that the efforts of those new employees should eventually pave the way for additional revenue, how about things in the interim?

Remember that hiring an employee is about more than paying an hourly wage or a set salary. It’s also about calculating withholdings, extending financial incentives like sick or personal days, and possibly supplying health insurance through a group plan. Is there enough money coming in each month to manage those additional expenses without having to exhaust any savings currently in the company coffers? If not, it may be a good idea to wait a little longer.

Entrepreneurs face a number of issues when seeking to take their companies further than they’ve ever been. Make the time to read The Founders Guide and use the information to inspire ideas about how and when to move the business forward. Doing so will smooth some of the bumps in the road and help the owner avoid making serious mistakes.