New business – when is the correct time to employ staff?
A very good question put forth by new small business owner Alan Earl – “Do you think I should start to employ staff, even though the business is still very new? When I started my company just over 6 months ago, I knew that my idea would work but not grow as fast as it did. Now, I am at a stage where I can’t keep up with every new order.”
For many new business owners, not knowing when the right time to employ staff can be a real stumbling block on their road to success. It will be a new experience, as they will now have to put their HR hat on and find the right person that will help take the business forward.
The key thing to note when unsure about hiring staff is – can you meet buyer demand? If not, then you can be sure that you need to hire someone. Obviously, you have to work out whether or not you will be able to cover their salary on a week to week and month to month basis. You have to work out how much of a salary you can pay which allows you to still be profitable. There is no point hiring someone and then not getting a wage yourself.
Then next thing to consider is – for what purpose are you hiring this person and in what way can they be utilised to get the best results. For example, if you a business owner that relies heavily on your computer, broadband and tech software and you don’t know how to fix this machinery, then you might need to hire someone from an IT background.
Business entrepreneur – James Caan stated in the Guardian that, “As a start-up, I understand that you’re worried about increasing your fixed costs because I felt exactly the same when I was starting out. However, to fully capitalise on the opportunities available you need to hire staff. There is only so much you can do on your own and if you really want to scale, you’ll need some help along the way. You’ll also find the experience much more exciting as you begin to share it with a team of your own.”