You are an entrepreneur. Maybe you are a one person business. Or maybe there are just a few of you. Now business is growing steadily, and there is more work than you can do alone. It’s time to hire someone.
Knowing when to hire someone can be very tricky. It can be a very long and daunting process that will take up valuable time, but it needs to be done. Since it is usually impossible for entrepreneurs to hire an employee as soon as they open their doors, small businesses often wait until they are no longer in the red and have enough profits to support at least one more salary.
Here are some tips to help you through the process of your first hire.
A small business usually has something that a large corporation doesn’t: flexibility. In order to attract quality talent to your one person company, it is important to offer things that differentiate you from other employers. This could mean offering a work from home option, co-working space, flexible hours, or something else. Make sure whatever you offer is well thought out so that it doesn’t negatively impact your business. Working from home has become very popular amongst small businesses because it reduces the cost of having an office space or furnishing an employee’s office.
Share the Money
Yes, you started the business, and you have done all of the work to get to the point of hiring another employee; however, to attract people money does a lot of the work. Profit sharing arrangements, percentage of ownership, and profit-based bonuses are a good way to incentivize new employees to work hard as well as give them a piece of the business that they are now helping build.
When it comes to financial arrangements, make sure to have an attorney review the employee’s contract before you offer it to them. You want to make sure that the compensation plan is clearly stated and if there are questions it can be dealt with before hire rather than when the check needs to be paid.
Know What You Don’t Know
Deciding what type of employee can be just as tricky as finding the money to hire one. It’s important to acknowledge where your skills are lacking and find an employee who can fill the gaps. Are you horrible at keeping track of paper or returning phone calls? Maybe an executive assistant would be a good fit. Do you need someone who can manage your technology? Possibly a programmer or IT professional. Maybe you need someone who can handle your marketing efforts or sales.
It can be important to make sure your business is in the right place and then move forward with caution and an open mind when finding your first employee. Taking your time and interviewing a number of good candidates can make the process less stressful. Listen to potential new employees’ ideas on how they can contribute and what they need to feel successful with you. As the business continues to grow this is a process you will revisit over and over again.