Eventually, every entrepreneur must face a challenging decision: When is the right time to hire?
Finding the balance between hiring before you’re ready and hiring when you’re at your breaking point is a fine line, one that is dependant on many factors internal to the structure and operations of your business.
When your business is producing more work than you can handle, it may be an indication that now is the right time for your business to take the next step and hire an employee. Knowing when to hire and what systems to have in place is key to the successful growth of your team and business.
Why hiring will make you more money
You see the thing is, when you start your own business you’re in bootstrap mode, you’ll likely be doing #allthethings, the marketing, the sales, the delivery, the admin, and everything in between. but there comes a time when your hourly rate will far surpass that an someone who can perform those roles for you.
Why do the $15 an hour admin work when you charge your clients $500 an hour for your time?
Hire because your revenue shows that there’s demand in your business. If your cost-benefit analysis shows that hiring someone gives you more time to sell, then you should do it. For example, decreasing your admin related tasks by 40 percent could result in an equal increase in your revenue if that time is now put towards revenue-generating activities and selling.
As with anything starting off small is a great place to start. think about the way the cashflow works within your business and consider your fixed vs variables costs. Hiring contractors is always a safer bet, at least initially to ensure that you are keeping your obligated monthly expenses lower.
Here is a guide to instantly evaluate where your business is at the moment and who you need it to help you get the outcome you want with the best-suited support:
You’re a start-up bootstrapping your business, trying to dig deep into what it is really all about. It’s likely that at this stage you’re 100 % involved in all your biz’s nitty-gritty operational elements.
The good news is, you’ve created a revenue stream – probably even just passed your 6 figure mark.
The bad news is, taking another client will figuratively make you explode. My advice? Send the VA bat signal before you explode. Start off by bringing in a Virtual assistant who will be able to take off the operational admin of your day. Keep your contracted hours with them flexible if your monthly revenue isn’t yet certain.
In this phase, you recognize and acknowledge change within your business.
And it is the perfect time to bring in someone competent that is aligned with your values and goals.
By now, you’ve found your groove. You have established revenue streams. You’re probably thinking of adding more as clients are sashaying in your door, hot and ready to buy!
You’re at multi 6 figure yearly income and proven product (or products!)
You have a VA or two helping you to run your business and you’re ready to scale, but your systems, sadly, aren’t. Managing your team is starting to take its toll on your own time!
It’s time to think about an OBM!
This is the time to hire A+ players that will make sure your growth is sustainable, your team is in check and your systems are being built and followed.
Leverage & Skyrocket
Your business is now bigger than yourself. Much bigger than you imagine it would be- congrats!
Revenues are flowing, systems are in place, you’re ready to pull out of the day-to-day ops.
Your business will take different shapes and forms. As it evolves, it will also require a different version of you. And…a different version of your support system.
You’ll likely have a few branches to your business, operational, marketing, sales and you’ll be at the top with the support of your OBM come COO to support you with the strategy, team management, and direction of the business.
Stay in your zone of genius but also take care of your people!
Hiring your first employee really is a big step. And sometimes…it doesn’t get easier the second and third time around. Remember…you’re dealing with people and not just numbers.
It’s great to have SOP’s in place to support your team and ensure that they are delivering the same high quality of service to your customer. With solid Processes in place, hiring new members of your team will feel breezy.