Q: I own a small business, and after a slow start, things have been picking up lately. I’m finding I can no longer do it all myself, so I’m thinking about hiring some help. The problem is, I’m very anxious about making that financial commitment. How do I know when I’m ready to hire my first employee?
A: As far as problems go, this is a great one to have.
I would reframe your question away from “Do I need to hire an employee” and ask instead, “In what areas do I need help?” If you find that you don’t have enough time to do what you’re best at and are, instead, drowning in bookkeeping, administrative tasks and IT issues, you may not need to hire someone, you could try outsourcing those functions first. Sometimes outsourcing allows you to postpone having to hire.
If you’re not drowning in busy work, but rather need help doing more of what you do well, -for instance, you are a massage therapist, or personal trainer and can only handle so many clients unless you hire someone with the same skills as you — then a better alternative is to bring on an independent contractor (IC) on a trial basis (be sure to follow IRS rules). This way, you can determine if there’s enough business to keep you both busy; and whether this is someone you want to keep around long term.
Here are some hiring tips, if you decide you’re ready:
Make a list
- Outline what tasks, responsibilities, knowledge and skills you require.
- Include intangible attributes: able to establish rapport with clients; ability to work without supervision, etc.
Start slow.
- Hire a part-timer or paid intern.
- Notice: Do you wish they could work more hours? Or are you stressing to keep them busy?
- Hire for a specific project.
- Try a temp agency. They save you time dealing with applicants.
Make it legal.
- Whoever you bring on, (temp, intern, regular, IC) always sign some form of agreement that protects you (confidentiality, nondisclosure, noncompete, etc).
- If not sure, get professional advice.
Hiring your first employee is not just a financial and legal milestone it’s a rite of passage. Try to enjoy it.
© Copyright Eva Del Rio
