Have you reached a crossroads with your small business where one set of hands simply isn’t enough? Maybe you’re turning down work, feeling burnt out or watching customer satisfaction go down the drain. It might have you contemplating hiring your first employee.
But how do you know when it’s the right time to make that first hire? The key is to recognize the signs you’re struggling without extra help—then make sure you’re ready to step confidently into the role of employer.
Too much work, not enough you?
As a one-person business, it can be tough to step back and see the full picture of where you’re at. Here are some clear signals that it’s time to expand on your one-person team.
You’re consistently working too many hours a day.
We all know that clocking in those extra hours every now and then is an inevitable hazard of running your own business. But if late nights have become your norm, it’s a red flag. An exhaustive work ethic is too often seen as the entrepreneur’s badge of honor, but the reality is, consistent overwork results in lower productivity—and can become a gateway to serious stress-induced health concerns.
You’re too busy for new opportunities.
Turning away opportunities because you’re maxed out is a tough spot to be in. If you’re too busy for new clients or projects, this can hold your business back. It’s also a sign you need to consider expanding your team. Your first hire could be the key to letting you say “yes” more often and with confidence.
You’re providing lower quality customer service.
High quality customer service turns first-time buyers into repeat customers—and, potentially, lifelong fans. If your response times are taking longer or you’re providing less personalized service, it’s a heads-up that your service levels are slipping. Adding to your team could help you get back to providing the stellar service that makes your customers feel heard and valued.
Your skill set isn’t covering every need.
As an entrepreneur, you’re used to being a jack-of-all-trades. But as your business grows, so does its need for specialized skills. If you’re finding it hard to keep up with the latest marketing trends, or you’re struggling to manage your books, it may be time to think about your first hire. A lack of expertise in key areas like marketing or accounting can slow your progress and might even lead to costly mistakes. Bringing in someone with the right skills could provide a boost to your operational efficiency.
You’re dealing with delays in your everyday operations.
Is it taking you longer to get things done? Operational bottlenecks such as slow order processing or a lag in project completion can jam up your daily workflow, leading to delayed services and unhappy customers. The solution is to streamline your processes. This could mean bringing another pair of hands on deck. Taking action to remove bottlenecks smooths out your operations and sets the stage for growth.
Your energy tank is running low.
If you’re feeling constantly exhausted no matter how much coffee you drink, you might be experiencing burnout. It can sneak up on you, and burnout can have a major impact on your decision-making, creativity and your enthusiasm for your work. Symptoms of burnout include feeling overwhelmed by daily to-dos, persistent fatigue and dreading the start of each workday. Think of it as a wake-up call to reassess your workload. Hiring help isn’t just good for you physically and mentally—it can be essential for keeping your business healthy, too.
You’re drowning in paperwork.
Can’t see your desk beneath the ever-growing stacks of paperwork? We’re speaking metaphorically, of course, in this digital age. But no matter where the admin tasks are piling up, they can become a major drag on your efficiency. The good news: These necessary but time-consuming jobs are ideal for delegation. By hiring someone to take over these responsibilities, you can free up your time to focus on strategic planning to drive growth.
Is your business ready to take the hiring leap?
You know you have too much work and not enough hours in the day. But how do you know if you’re truly ready to take the leap and make your first hire?
Before you post a job listing, ask yourself the following questions to determine if your business is prepared for this next step in.
Are you revenue-ready to be an employer?
Sustained revenue growth often means your business model is working—and that you have the financial buffer necessary to support hiring an additional team member.
Analyze your profit trends: Take a deep dive into your financial statements. Are there peaks and troughs, or is income steady? Use these insights to forecast future earnings with and without a new hire. Chart out your month-to-month revenue against your fixed and variable costs. This analysis will help reveal your business’s ability to handle the financial commitment of paying an additional salary.
Do you need to fill skill gaps?
If you find yourself regularly outsourcing tasks because they require a specific skill set, or if projects are being delayed while you scramble for the necessary technical know-how, it might be time to bring specialized skills in-house.
Identify skill gaps: Review your current projects and identify which challenges have been coming up frequently. Are there tasks that you’re consistently struggling to manage effectively? Make a list and match them with skills that could address the issues directly. For example, if keeping your books has become overly complex, an employee skilled in accounting or bookkeeping could take that burden off your shoulders.
How does hiring fit into your growth plan?
What’s your vision for your business? A strategic growth plan is more than a list of goals: It’s a blueprint for how you’ll expand and evolve. When this blueprint includes a plan for hiring, it means you’re not just dreaming big—you’re preparing your business to act on those dreams.
Map out your needs: Sit down and outline the areas you envision your business growing. What specific tasks will need a hand? Write down the roles that could fill these gaps, including the skills and experience each role should bring. Go beyond the basics to include what their day-to-day will look like, your expected outcomes, and how each role contributes to specific business objectives.
Can your cash flow handle a new hire?
You’ve already assessed your revenue trends—now let’s talk cash flow. Having a consistent and predictable stream of money coming in is crucial when you’re thinking about your first hire. Reliable cash flow means you won’t have to guess each month whether you’ll be able to cover your new employee’s salary.
Assess your payroll capabilities: Use forecasting to help you visualize how well your business can manage an additional salary. Begin by mapping out your regular monthly income and expenses, then add in the additional costs of a new employee to see whether your numbers can comfortably handle another salary. Be sure to take into account all the “hidden costs” you’ll need to pay in addition to your new hire’s take-home pay, such as payroll taxes and insurance coverage.
What opportunities are on the horizon?
Have you identified emerging customer needs or untapped markets? If you haven’t had the bandwidth to pursue new opportunities, your business might be poised to step into a phase of growth with the help of a new hire. That way, you avoid risking burnout and stretching your resources too thin.
Evaluate market potential: Take a close look at your potential opportunities. Ask yourself questions like: Are customers genuinely excited about this? How are my competitors responding? Assess how well these opportunities fit with your business goals and whether they show a promise of consistent or increased revenue. Make sure you’re focusing on possibilities that aren’t just exciting, but also viable and profitable in the long run.
Deciding to make your first hire is no small step, but if these signs and indicators hit home for you, you may be ready to move forward. Bringing in another set of hands can increase your capacity, boost your customer satisfaction and sustain your business’s growth.
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