Running a startup, you’re likely used to working long hours and putting in extra work throughout the week. With so much on your plate, it can be hard to know when the time is right to hire your first employee.
If you’re turning down work just as often as you’re taking it on, however, it could be a strong sign that you are ready for a new person to join your startup. Because it takes a huge investment in time, resources, and capital to bring someone new on to the team, it’s important to thoroughly consider whether you’re ready for a new hire.
Every startup will grow differently but the things to consider are similar.
Do You Have Enough Time To Do Everything?
While 50 hour weeks may come more often than not in the world of small businesses, it’s important to make sure that you’re not overworking yourself.
The consequences of burnout can cost you more time and money than you’re saving by not hiring someone new. A properly supported team can work more efficiently and stress-free when they don’t have to worry about how everything is going to get done.
In some situations, you may be overworked but not need a new employee. You may find that you simply need a more efficient method of communication, or simply to outsource accounting and HR tasks to larger firms. Explore all your options before signing any contract.
Can You Afford To Hire Your First Employee?
Logistically, it will require consistent and reliable profit in order to pay the salary of a new employee. In addition, you will need to have enough saved or coming in to cover the loss in profit you’ll take from recruiting efforts, onboarding, and training.
Hiring too quickly without considering the costs associated can quickly sink a small operation, so do the math. If you’re working more than full time, yet can’t seem to find room in the budget to outsource any tasks, that may be an issue. Consider raising your rates or cutting back on expenses.
What Profile Will You Need?
With the proper resources, the next step is to determine their exact role. Will you need a specialist to take on the tasks that you’re not an expert at? Or will you take on a jack-of-all-trades to help out a little bit everywhere?
Before you put the word out that you’re looking to hire, create a job description. Include daily tasks, competencies, and monthly goals. Vet this list to ensure that these tasks make sense together and that they will create enough revenue to justify the employee’s pay. If they don’t, they should at least free you up enough to generate more revenue.
Taking the health of your business and the projects required you are sure to find the right employee for your startup. Growing a business and a team can be incredibly difficult, but also very rewarding. Check out the infographic below for a list of signs that it’s time to hire your first employee.
Are you considering hiring your first employee for your startup? What are the important things you prioritize? Share your experience in the comment section below.