Hiring your first employee is one of the most monumental moments in any entrepreneur’s career. Here’s an interesting little fact about the business world – 99% of businesses have fewer than 5 employees. 95% are one-man bands. Bringing on your first paid employee to help your business isn’t just a doubling of your manpower – it takes you into a whole new stratum of business operators. So, with that in mind, when should your business be thinking about taking on employees?
Like most major business decisions, there are as many elements to this decision as there are stars in the sky – so we’re going to focus on two of the big ones today. The first, and probably most important, is of course workload. If you’re comfortable with the workload you have currently, then you probably don’t need an extra hand in your business. If you’re absolutely swamped, then you should probably be thinking about hiring someone. But there’s an element of this that’s often ignored – what your future business is going to look like. If your business is about to start rapid growth, it can pay to have the extra manpower in place beforehand. That way, you don’t have to bring someone up to speed whilst still having to deal with the increased workload.
The second element to this seems simplistic, but is of vital importance – does it make sense for you to bring on someone else? Some businesses out there need employees just as a fact of life – try running a restaurant without waiters! But for other businesses, you need to see if your business is in the right state to bring an employee on, and what the potential benefits would be. That’s where people like us come into the mix. It’s difficult to analyse your business from the inside – having an accountant on your side makes it much easier to take a real look at your business. You’ve got an impartial party who understands the practicalities of business, and isn’t afraid to tell you if you need to make some serious changes before you can bring on other people.