It’s never been easier to start a business online as it is today. But what happens when you decide you want a little more? The bare facts are that you will need to hire people at some point if you want a business capable of expansion and success. The trick is to ensure you start hiring at the right time - and we’re going to explore exactly that today. Let’s take a closer look.
The wrong time to hire
First of all, there will be some points in your business’s lifespan that make you feel like you should start hiring. But don’t leap in blind - because many of these moments are the wrong time to start employing people.
For example, when you are feeling under pressure and have a lot of work on, a new employee might seem like a sensible solution, But what happens when your workload returns to normal? You will be left with a full-time employee on your hands who may have nothing to do, meaning you are paying for them to be unproductive.
Get the systems in place
Before you hire a single soul, you have to be ready for it. Employment law, health and safety, tax and insurance responsibilities - you need to know about them all. You will need to consider health and safety outsourcing or get help from an independent HR professional to help you create policies that will cover your back.
It’s a very different scenario to working by yourself, and failure to take your responsibilities seriously could lead to severe consequences.
Target the money
When you hire people, at first, you have to take on employees that can generate money for your business. This tactic can work in two different ways.
First of all, you can hire someone to start doing the tasks that are stopping you from earning to your highest potential. Let’s say you spend a day a week doing paperwork - it makes you nothing. But for the other four days, you are out drumming up business, and earning £1000 for your company. In this case, it might be worth hiring someone to do your paperwork, and who can do it quicker. You might find an admin assistant who will do the job in half the time, and only pay them £100. That frees up your time to earn an extra £900 per week for your business.
Secondly, you can target areas such as sales or marketing, which have a direct impact on your revenue. As long as you can guarantee your income will be greater than the employee’s wages and benefits, hiring makes complete sense.
Start with contractors
Finally, it’s almost always best to hire contractors or outsource work before hiring. You will only pay for the work done, and you won’t have to worry about things like paying taxes, National Insurance, training, or sick pay.
Once you find that you are using a contractor regularly, it could be time to take someone on full-time. Just make sure that the figures add up - as always, in business, the money should be your biggest hint.