SMALL BUSINESS HIRING: WHEN IS IT TIME TO BRING IN PROFESSIONALS OR NEW HIRES TO YOUR SMALL BUSINESS
Updated: Oct 14, 2020
When you started your business, you must have started it with a goal of running a thriving business - more profits, high cash flows and an optimal capacity to deliver your commitments. In order to achieve this kind of growth, being a one-woman business may not be a sustainable business model. You will need to hire, even if it means bringing on friends or family. No small business was intended to stay small forever.
How do you know when it’s time to hire new employees to your small business?
Based on my and my clients’ experiences, these are some of the tell-tell signs:
When you’ve reached capacity for new work
You know it’s time to recruit a new hire when you can’t take on any new business opportunities, or you are struggling to deliver the minimum. A new addition can help ease the workload and free up your time to do more.
When you need to inject fresh ideas into your business
New people usually bring fresh perspectives and new ideas to your existing business. They may see things that you would usually overlook because of your constant exposure to the same processes and ways of working.
When your team starts feeling overwhelmed and demoralised
If you’re a one-woman business, you know when it’s time to make a hire when your work-life balance is out the window. If you work with friends, family or a small team, you’ll know it’s time because your team will be bending over backwards to get you to your business goals. A conversation with them will let you know if they need some relief from their workload.
When you don’t have the skills to do more
Sometimes, you’ll need a new hire to supplement skills that are missing in your current workforce. For example: accounting is a must-have skill in every business. If you don’t have accounting skills, you may want to hire an accountant.
When you want to expand your business’ capacity for new work
A new hire may be necessary if you want to add additional revenue streams. If you run a laundry service for example, and you need to have a competitive advantage in your industry, you may decide to be doing repairs before laundering. You may need to bring on a seamstress if you lack the skills.
When you want to increase your revenue.
If your financials demonstrate steady growth month-on-month, or year-on-year, it may be time to consider growing your team in order to maintain or increase your momentum. It may mean that your processes are under control and all the systems you have in place are working well and are ready for scaling.
Hiring new employees to your small business is not a decision to be taken lightly. You shouldn’t do it out of desperation or just for the fun of it. The timing has to be just right - otherwise you risk all your foundational work crumbling. At the end of the day, your new hire should either make you money or save you money.
If you find yourself in a situation where you are ready for a new employee but your financials don’t allow it, consider hiring a professional body. Sometimes, new employees may not be what you need. New employees come with statutory requirements and add an extra level of complexity that you or your business may not be ready to take on. Instead, you could consider hiring professional consultancy teams or agencies to help you get to your business goals. These consultants can guide you on tools and technologies that can help you streamline and automate your processes for the best results.
So ladies, I hope this helps you make more informed business decisions.