Hiring a first employee is a critical step for any entrepreneur. It’s a big decision and absolutely not one to be taken lightly.
In addition to the difficulties of finding the right person, it’s additionally expensive to expand your team. Some estimates put the cost of hiring a new employee around $4,000 — which makes sense when you consider the time you spend looking, the cost related to another hire, and all the various costs most people neglect to count.
With that in mind, here are four questions you should consider asking yourself before you make that first procure.
Are there skills I need that I don’t have?
It’s not uncommon for an entrepreneur to be a subject matter or technical expert in product development, marketing, sales, or some other facet of running a small business. It’s the rare bird that can keep on wearing all those hats as his or her business grows.
Many entrepreneurs, as they think about growth, likewise evaluate their core strengths and where they might require extra expertise to encourage that growth. If you determine that you lack fundamental skills to help drive the business forward, it may be a great opportunity to consider hiring that first employee.
Do I need more business than I can handle myself alone?
Many entrepreneurs work for years as sole proprietors who depend on freelance or temp workers to get them over a bustling couple of weeks or a foreseen busy season.
It seems like businesses seldom maintain the status quo as usual for long. For entrepreneurs, when growth continues beyond the anticipated busy season and it ends up more diligently to keep up the pace, it might be a decent time to consider hiring your first employee.
Where does it make sense to invest your time?
It’s easy to get bogged down in the minutia of all the every day that should be done in a small business. Sales calls should be made, Orders need to be filled, invoices need to be cut and deliveries need to get to customers. When you’re the one who is working, you do all these things. As your business grows, if you start feeling like you’re wasting your time doing things that should be done, you should consider hiring your first employee.
Are my customers satisfying?
Indeed, even the best businesses sometimes hear complaints from customers. Whenever customers start complaining about customer service, slow deliveries or start speaking negatively about you on your Twitter feed or Facebook page, it may be a great opportunity to consider that first hire.
Some small business owners discover the expense of the new employee is well justified, despite all the trouble they consider how much more the additional pair of hands can help them achieve. Will that be the situation in your business? That’s something you’ll need to decide.
There will probably be days when you miss being the only employee — let’s be honest, although adding employees can be useful for the business, it likewise adds a level of complexity that didn’t exist when you were flying alone. Nevertheless, sharing your dream with that first employee can be remunerating as you work together to address customer needs and build a successful e-commerce business model.
