Small business owners are self-made by nature. They know what they want, and they know how to get things done. There may come a time, however, when you need to hire someone else to help you run your business more efficiently. The following are five signs it’s time to hire your first employee.
1. You Have to Turn Away Business
If you are having to turn away business because you don't have the time to handle it all, it might be time to consider hiring your first employee. Not being able to keep up with customer demand is a problem if you hope to grow your business. You don't want customers to face longer wait times, and you don't want to struggle to respond to inquiries promptly. Having someone else to help you out can make a world of difference.
A busy schedule is good to have, but if it is becoming a growth barrier, it's probably time to address the situation. Consider that each opportunity you turn away represents potential revenue that could fuel your business. If demand has been strong for a period, consider hiring someone to help you increase sales and improve customer satisfaction. Review your sales history and workload trends before hiring. If you are consistently at or near capacity, an employee is likely a
good addition.
2. Having an Employee May Help Your Business Save Money
While you may be hesitant to hire because you are concerned about the money it will cost you, it's possible that having at least one employee may help your business save money.
"Hiring for the first time is a big financial decision," says Kayla Kessler at US Chamber.* "An employee can affect the influx of profit by bringing in new customers, increasing productivity and marketing products well. They can also save money by using technology instead of outdated methods, improving
efficiency and using their talents to add value to the business. If you find someone that fits the criteria you’re looking for and has the potential to
bring in or save more money, they’re worth bringing onto your team."
3. Administrative Tasks Are Taking Over Your Day
If you find that administrative tasks are consuming many of your workdays, it may be time to hire someone. Otherwise, you may not be able to adequately serve your customers. This can increasingly become a problem as your business grows.
You may spend hours each week answering emails, scheduling appointments, processing invoices, managing social media accounts, updating records, and/or handling customer service inquiries. These are all important tasks that need to be taken care of, but they may not be directly generating revenue. You must have time for the work that brings in revenue.
A retail business owner may need help with inventory management and customer service. You might need an assistant to handle scheduling and paperwork. Whatever the case may be, even a part-time employee can help free up valuable time that allows you to focus on making sales and thinking about your strategy.
4. Your Business Performance Is on the Decline
If you find that your business performance is going downhill, that's a major red flag that handling everything on your own may no longer be practical.
"If you’ve noticed a decline in your business performance or inconsistent results, it may be a sign that you need to hire your first full-time employee," says Zach
Lezburg at Small Business Expo.** "When you’re stretched too thin, it’s difficult to maintain the same level of quality and consistency in your products or services. Bringing on a full-time employee can help ensure that your business performance remains steady and that you can consistently meet the needs and expectations of your customers."
5. You're Constantly Working and Feeling Burned Out
You may simply need an employee for the sake of your own health. If you are constantly working long hours to the point of exhaustion, you may begin to feel burned out, and that's not a healthy place for your mind or your business to be.
If you frequently work evenings, weekends, and holidays just to keep up with normal operations, this isn't a sustainable strategy. You may need to hire support. Burnout can impact your decision-making, as well as your productivity, creativity, and ability to serve your customers well.
Fatigue can lead to errors and missed opportunities. If you are in a bad mood, it can put a strain on customer relationships, not to mention personal ones. Stress can also have various negative effects on your physical health.
You can support the long-term health of your body and your business by not taking on the entire workload yourself. Hiring someone can allow you to have some personal time while also freeing you up for other tasks.
It can feel intimidating to hire your first employee. You may be concerned about payroll expenses and even about having to share your business with another person, but the reality is that you might need support if you want your business to reach its full potential.
* https://www.uschamber.com/co/start/strategy/when-to-hire-first-employee
