According to the Small Business Administration, 86% of small businesses are run by the owner only. Most small business owners prefer to do it all by themselves; however, it may no longer be feasible as your business gains momentum. Here are four signs that it may be time to hire someone.
You have met your workload capacity and are turning down new opportunities.
Turning down work opportunities can be detrimental to your business. It can create a poor image of your brand and force potential customers to go to your competitors. Gaining new customers is often one of the most challenging aspects of a business. Do not create a pipeline of new customers to your competitors by not hiring someone.
You can no longer provide quality service to your customers.
Customer service and high quality is an essential element of business success. Delayed or failed responses to customers and a lack of accessibility can increase customer complaints and end business relationships. Service quality issues may leave customers feeling as though their business relationship with you is no longer valuable. Do not reduce the quality of your business’s services by not hiring someone.
You have the continuous revenue to support it.
Hiring an employee requires a consistent revenue stream to pay for the employee’s salary, applicable taxes, and insurance. In Missouri, the minimum wage rate for an employee is $10.30 per hour. This wage rate equates to a full-time 40 hour per week employee costing your business $21,424 ($10,712 for part-time) in salary alone. Evaluate your financial position with your Accountant to ensure you can cover the cost associated with an employee’s salary consistently. Weigh your decision carefully against what could happen to your business if you do not hire someone.
You have enough work to keep them busy.
Hiring an employee is a monumental moment for your business. Hire someone when you are sure that you have enough work to keep them busy 20-40 hours per week. This ensures you are efficiently using your business’s resources. Ensure you hire someone who has the skillset to shift tasks away from your workload, not split it evenly.
The Bottom Line
The ability to keep up with your business’s customers’ demands is essential to your business’s long-term success. Regardless of the type of business you run, you must recognize your capacity and effectively evaluate the necessity of hiring someone to help you reach your business goals. Do not let the cost of hiring someone keep you from securing vital help to manage your daily tasks. In the end, the goal of your business is to grow.
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