Featured Documents
price: $28.95
price: $0.00
price: $28.95
After your first successful sale, perhaps the biggest sign that you are in business for yourself is the first time you hire an employee. No more will your business be a one-man operation. You will be taking on supervisory duties in addition to your present tasks. While a first employee presents challenges, it provides a number of opportunities for the small business owner. But how do you know when to hire your first employee?
When To Hire Your First Employee
Hiring your first employee is a major step. Among the considerations you should make:
- What kind of work do you need done that you can’t do yourself and is distracting you from doing more important work? Note that taking inventory of these tasks will not just provide you with a job description for your future employee. It will also help you to determine if you can’t handle these tasks yourself through increased organization and time management.
- Be acutely aware of company financials. You need to know just what you can afford -- full-time employee or part-time employee? Entry-level or mid-career professional? Remember that you will also have to pay payroll taxes at the very least on top of whatever you offer in the way of salary. Maybe you can’t even expand at this time and need to hold off. These are all things you need to know before you even go online to place a classified ad.
- Have some extra cash on hand. While another set of hands around the office can have you making more money over time, you’re likely to lose money in the short term. Have a little extra cash in the bank to cover your new expenditures. That way you won’t have an all-too-brief relationship with your first employee.
- Know what the going rates are for the position you want to hire for. While you might not be able to provide the best compensation package available, you’re going to need to be able to offer something competitive if you want to be able to fill the position. Equity in your company might be an attractive form of alternative compensation, but how much should you offer for the position you need?
- Qualifications are key. Even for something as simple as filing, you’re going to want someone who can perform the tasks you need completed with a minimum of supervision. Do you know what skills and experience you’re looking for and what they will cost you?
Finding the Right Person
Once you’ve decided that it’s time to expand, you need to find the right person for the job. Not plugging the hole in your operation with the right peg can be a disaster. Be careful who you bring into your operation and make sure that they are just what you are looking for. Your first hire is perhaps the most important hiring decision you can make. It can sink your business or set your growth back by several years.
Photo courtesy of Deputado Bruno Covas