Updated: Jul 13
Is your business growing? Are you starting to feel the pressure of the workload and you think you’re ready to hire your first employee? Don’t worry, here are are go-to tips on when you should start thinking about hiring:
1. Things are falling through the cracks. You’ve taken on more work than you can physically complete. This will look different for every industry and each individual, so you might not notice immediately. But aware that when you over commit, you could end up with unhappy customers and that does not make for a successful business.
2. You’re financially in a position to offer someone a salary. Yes, you can always hire someone part time to help ease into being responsible for another salary (and all the taxes that go into having someone else on your payroll), but a lot of experienced professionals are not interested in part time work. Consider the industry you’re in, does it support part time employees or maybe someone who’s looking to get their foot in the door with an entry level position? If not, you will need to ensure that you can cover the overhead expenses, your salary (always pay yourself first!) and your new employee’s salary (or hourly rate), plus any additional taxes (every state is different, so check with a Certified Public Accountant or Payroll Professional on what you might owe once you start hiring).
3. Is the help you need short term or long? Sometimes hiring a consultant or Virtual Assistant is more economical than adding the burden of another salaried individual. These temporary assistants or professionals are a cost effective way to get the most bang for your buck. Many charge a base hourly rate and you get the freedom to use their time where you need it the most.
4. Don’t overthink it, the stress of feeling like you need help can reduce your productivity. Weigh your options and always, always, always consult with your CPA before making big financial decisions that can affect your company.
And we’re always here to help if you have any questions about the hiring process or need a referral for an excellent CPA or Virtual Assistant!