HIRING THE FIRST EMPLOYEE

Survival is often foremost on the mind of a small business owner. Hiring a first employee or adding a second or third employee, in many cases, is not a well thought out process. A common complaint I hear from small business owners is, “I am caught between a rock and a hard spot. I don’t have time to get everything done but I can’t afford to hire anyone.”

This is often becomes a reason for a business failure. As a business owner you have certain strengths. You may be the very best possible sales person for your company, or perhaps the best provider of a service or product. A good self-analysis will determine exactly what your strength is and what value, in terms of dollars, does that strength translate to for your business.

If you had more time to develop and properly use that strength, what would your bottom line look like? I have found that in many cases, the concentration of effort by a business owner can double or even triple the current business income. Knowing what the business owner will be doing, a list of other necessary business skills can be developed and used in the hiring of an employee.

Business is a risk, but it can be a calculated risk. If by working your strength, enough funds can be generated to pay for an additional employee and at the same time improve the bottom line then it’s time to implement such a plan.  Operating capital during the transition period may be a concern, but with proper budgeting and planning it can become a reality.

“Whenever you see a successful business, someone once made a courageous decision.”

       – Peter Drucker