As a first-time small business owner, you’re probably used to doing it all – from answering customer inquiries to handling accounting, marketing, and everything in between. While the hustle can be invigorating, it can also be overwhelming. At some point, you’ll need to bring in extra help to keep the momentum going. But when exactly is the right time to hire your first employee?
The answer to this question isn’t always clear, and it can vary from business to business. However, there are some key signs to look out for that indicate it’s time to bring in an extra pair of hands. Let’s explore these signs in more detail, along with the crucial factors you must weigh, so you can make an informed decision about when to hire your first employee.
Signs that you’re ready to hire
You’re wearing too many hats
As an entrepreneur, it’s normal to take on multiple roles in your business. However, if you find yourself overwhelmed, staying late at the office every night, and sacrificing important family or personal time, then it’s time to consider hiring someone to help with the workload.
When you’re working around the clock and you’re spending all of your time working in the business rather than on the business, it’s easy to get bogged down in the details and lose sight of the big picture. Hiring a new team member can provide you with the time and space you need to focus on the growth of your business.
You need expertise in a specific area
Another reason to consider hiring your first employee is when you require specialised skills that you don’t possess. For example, if you’re an e-commerce store owner, you may need someone with expertise in digital marketing, graphic design, or web development. Hiring someone with these skills can help you improve your online presence, attract more customers, and increase sales.
You want to grow your business
If you’re serious about growing your business, you need to be willing to invest in it. Hiring your first employee is a significant investment, but it’s one that can pay off in the long run.
With a new hire, you can take on more work, expand your business, and potentially increase your revenue. You can also free up your time to focus on strategic planning, networking, and other activities that can help you to grow your business.
You’re missing out on opportunities
When your business starts to grow, you may find yourself turning away customers and losing out on opportunities due to a lack of time or resources. This is a clear sign that it’s time to hire your first employee.
Bringing in additional staff can help you increase your capacity and serve more customers. It’s a good idea to assess your business’s growth potential and projected workload to determine whether hiring someone is the right move.
Steps to hiring your first employee
Once you’ve decided to bring someone else on board, it’s essential to approach the hiring process thoughtfully. Here are some steps to follow:
Ensure you have enough cash flow
Hiring an employee is a significant financial commitment. Beyond simply paying a salary, you’ll need to factor in benefits, taxes, and other expenses. To avoid any financial pitfalls, it’s crucial to assess your cash flow and ensure that you have enough funds to cover these costs. You may need to explore cost-cutting measures or secure additional funding to make hiring a feasible option.
Define the role
Before you start the hiring process, define the role you’re looking to fill. What tasks will the employee be responsible for? What skills and experience are necessary? Having a clear job description will help you attract the right candidates.
Spread the word
Create a job listing and use sites such as Indeed or LinkedIn to post your job listing. Be sure to include the job description, required skills and experience, and information about your company culture and values.
Screen candidates
Once you start receiving applications, screen them to narrow down your list of candidates. You can do this by reviewing CVs, conducting phone interviews, or using a pre-employment assessment tool.
Conduct interviews
Once you have a shortlist of candidates, invite them for an in-person or virtual interview. Ask questions about their experience and qualifications, as well as their personality and work style to ensure they are a good fit for your company culture.
Make an offer
Once you’ve found the right candidate, make a job offer that includes the salary, benefits, and start date. Be sure to provide them with an employment contract that outlines their job responsibilities, hours of work, and any other relevant information.
Get the capital you need from Sourcefin
Taking the leap to hire your first employee is a significant milestone for your small business. It’s a tangible indication that your hard work is paying off and you’re ready to elevate your enterprise to new heights. However, finding the necessary funds to take the plunge can be quite daunting.
At Sourcefin, we understand the trials and tribulations of this process and are determined to support SMEs in overcoming them. Reach out to us today to discover how we can assist you in obtaining the capital you need to invest in that crucial new hire and propel your business to the next level.
