How do you know when it is time to hire? This question is common among the small business owners I speak with regularly. Hiring is a BIG deal. Especially your first hire. Today, I want to share some key indicators that it may be time to hire a team member in your business.
You’re Turning Down Work
The number one way to know it is time to hire is that you are turning down work because you have reached capacity in your business. If you cannot take on another project, then you need to hire your first team member.
Some people drag their feet hiring even if they are swamped with work because they are worried about finding the right person. Our recommendation is to hire for the most straightforward job possible. Could you hire someone to manage your email inbox? Post on social media, do project research? If you are hesitant about hiring because you are not ready to hand over high-level projects, then start with something easy and low-risk. Often, this is an excellent way to vet people and determine if the hire is a good fit for more complicated projects in the future.
You Have A New Revenue Stream
Do you have an excellent idea for a new service offering or product? Is there a complimentary service that you would love to bring in-house? You are sure it will bring more revenue into your business, but you do not have the time to get it to market…that means you need to hire!
As we mentioned, you can hire to take the easy tasks off your plate and create more room and time for adding new revenue streams to your business. Look for the tasks that are simple and easily handed off. You might be surprised how much time that can free up in your day-to-day schedule.
Things Are Falling Through the Cracks
Another sign it is time to hire is if you are receiving customer complaints or things are falling through the cracks. If you are unable to offer fantastic customer service because you are stretched too thin, it is essential that you add a team member. Small businesses thrive based on customer relationships, and if a relationship goes sour because you cannot deliver, that can negatively impact your business.
In the same category, if the quality of your work has been suffering because you are trying to serve too many clients, that is another reason to hire. If you cannot deliver good results, that will lead to losing clients. Spending money on a new hire is better than losing money because a client leaves.
You Don’t Have Time for Maintenance Tasks
Are you finding your own marketing, bookkeeping, or other business housekeeping tasks are not being completed? Do you spend all your time on client work and no time on your business? If so, you need to hire.
In this scenario, you have two choices. You could hire someone to help in your business so that you can focus on these business tasks. Or, you can outsource these items to other service providers. If you are nervous about hiring a contractor or an employee, then hiring a professional service provider like a marketer, bookkeeper, and virtual CFO might be the solution.
You Need to Hire for a Specific Skill
Sometimes, you need a specific skill in your business. Hiring for a particular talent can become necessary to complete client work or internal business operations. When hiring for skill, make sure to do your research into competitive salary. Someone with a specific skill is marketable, and to bring on the right person, you need to be ready to pay a fair rate in the current market.
Be clear in your job description about what you are looking for, and have an onboarding plan so your new hire can hit the ground running. Since your new hire already has the skill you need, the training process will be more centered on the logistics of your business, not the task.
You Have Not Had A Break
When was your last vacation? Do you work nights and weekends? Have you missed important life events because you have to work? If you answered yes, it is time to hire. Most business owners get into entrepreneurship to have flexibility, and instead, we end up chained to our business because who else will do the work?
As your business grows, it becomes crucial to have someone who can give you a break! 24/7 work is not sustainable, and you need to take a break to have a business with longevity. As mentioned before, you can start with a low-level position that can assist you enough to allow you to take some time to recharge.
You Can Afford to Hire
If you have the revenue and can afford to hire, it might be time to do so. Many business owners have tons of mindset issues around hiring. Some of them are:
- What if I don’t have the money to pay someone later? Revenue could dry up!
- What if they are terrible and I waste time and money?
- What if I hire them and can’t pay myself?
- What if I don’t have enough work to keep them busy?
The list of worries can go on and on! I am not going to lie; there are risks involved with hiring. Just like there are risks with starting your own business. When you start having doubts, we invite you to spend some time giving equal air time to the possible positive outcomes! What if you hire someone and:
- You have time to add more awesome clients
- You can pay yourself more!
- You can take time off, and your business can continue to thrive.
- You can grow a team of amazing people with the same vision for your business that you do.
There are a million scenarios that indicate that you are ready to hire! Spend some time visioning what your business could look like with your first team member. Knowing you can afford it is one of the most important steps. It’s also a step we map out for our clients regularly. If you need to chat about business finances, book your complimentary discovery call, and let’s talk about your first hire!