Every entrepreneur inevitably faces a critical question: When is the optimal time to hire? Striking a balance between premature hiring and waiting until you’re overwhelmed can be tricky and often depends on various internal factors related to your business operations.
Recognising when your business is consistently generating more work than you can manage signals that it might be time to take the leap and employ someone. Understanding when and how to hire, as well as establishing appropriate systems, is key to successfully expanding your team and business.
Unleashing Business Potential Through Strategic Hiring
When you kickstart your own business, you’re often wearing many hats – from marketing and sales to delivery and administration. However, there comes a point where the value of your time significantly surpasses the cost of delegating these tasks.
Why spend time on administrative tasks when you could be earning $500 an hour serving clients?
Hire when your revenue indicates solid demand for your business. If a cost-benefit analysis reveals that employing someone frees up more time for you to sell, it’s a no-brainer. For instance, reducing administrative tasks by 40% could potentially boost your revenue by a similar margin, assuming that freed-up time is allocated to revenue-generating activities.
Starting small is always a wise approach. Consider your business’s cash flow and differentiate between fixed and variable costs. Initially, hiring contractors can be a safer bet, helping to keep your obligated monthly expenses lower.
To evaluate your current business state and identify who can best support your desired outcomes, consider this guide:
Phase 1: Exploration
At this stage, you’re likely a start-up fully immersed in every operational aspect of your business. The good news? You’ve created a revenue stream and might have even surpassed the six-figure mark. The downside is that taking on another client could lead to burnout.
Before reaching this point, consider hiring a Virtual Assistant (VA) to handle daily operational tasks. Keep your contracted hours flexible if your monthly revenue is not yet consistent.
Phase 2: Growth
You’ve established steady revenue streams and are probably contemplating adding more as clients eagerly seek your services. With one or two VAs helping run your business and a desire to scale, you may find your systems struggling to keep up. It’s time to consider an Online Business Manager (OBM)!
Hiring top-tier employees ensures sustainable growth, effective team management, and the establishment and adherence to efficient systems.
Phase 3: Leverage & Skyrocket
Your business has now grown beyond yourself – congratulations! With steady revenues and established systems, you’re ready to step back from day-to-day operations.
As your business evolves, it necessitates a new version of you and your support system. With operational, marketing, and sales branches, you’ll need the support of your OBM-turned-COO for strategic planning, team management, and overall business direction.
Remember, hiring your first employee is a significant step, and it doesn’t necessarily get easier with subsequent hires. You’re dealing with people, not just numbers. Having robust Standard Operating Procedures (SOPs) in place helps ensure your team delivers consistent, high-quality service to your customers, making the hiring process much smoother.