When to Hire in Your Small Business
One of the smartest moves you can make to grow your business and increase your revenue is to hire new employees. The hard part is deciding when to hire in small business. Fortunately, there are some signs you can watch for to make your decision as to when to add new employees to your company. If cash flow isn’t an issue and you want to expand your reach, here are some important factors to consider.
How Do You Decide If You Should Hire Someone?
Learning how to hire the right people is as important as learning when to hire them. You'll first want to be clear about what you need, want, and can afford. Next, think about how your business is capable of fulfilling these needs. Finally, consider what's happening in the market and with your competition, and the best time to hire new employees.
Signs & Reasons for Hiring
There are many reasons to consider hiring people to work for you. One of the most obvious is that you have too much work for the current team. If you find yourself working late nights and weekends just to get things done, it's time to consider hiring someone new. Another reason to hire someone is that the quality of work is suffering because everyone is stretched too thin and can’t get their work done with excellence. You may even need a new skill set that your team doesn’t already have that can help you attract new clients. Here are some important reasons to hire someone.
Customer Service Is Slipping
Learning when to hire in small business is critical. When your customers are no longer getting the quality service they need, then it’s probably time to look for new team members. You need to hire if your customers can't get their questions answered, if they are waiting too long for a response and if your team can’t handle the inquiries. If you don't take care of this now, you'll lose revenue and customers over time.
Quality of Products and Services Are Suffering
As a small business owner, you know that quality is important for success. If customers are complaining about the quality of your products or services, it’s time to get more hands on deck. Taking out a loan to hire employees is a great option when they need help but also don’t quite have the cash flow to add a new person to the team. When your product no longer meets expectations, customers will go somewhere else if you don’t fix the problem.
Need a Special Skillset
Hiring a new team member with a specific skill set, like an accountant or an app coder, for instance, can help you grow your business in meaningful ways. When to hire in small business can easily be when you simply need a team member with a new skill. It’s important to be specific with what you need. It’s also important to understand that this is also when to hire an accountant or an HR professional. As you specialize the roles within your company, you’ll find better-qualified people and have more success.
Overwhelmed Employees
When an employee is overwhelmed, the business suffers. When an employee is stressed, the business suffers. The most obvious sign that your employees are stressed and overwhelmed is when they say things like: “I can’t do any more work on this project; I have to check my email” or “I don’t have time for lunch today because I have too much work to do.”
Saying "No" to New Business
Learning when to hire employees will help you be available for new opportunities. If you find yourself saying no to a new business, then it might be time to add a temporary employee to start. If the work continues to grow with them there, you can always make their role permanent.
Bringing Things In-House
Your business needs may be growing or changing quickly enough that the people working with you cannot keep up with all their responsibilities and projects at once. You may also find that you no longer want to outsource certain roles because the quality you expect isn’t there. If you bring those roles back into your business, it’s time to hire new people to fill them.
Low Value Work is Being Done by High Value Employees
If you are paying a high-value employee to do low-value work, it is a waste of their time and your money. Hire someone to do the high-value work, and hire a different individual to do the low-value work as well.
No Time for a Vacation or Break
Even small business owners need a break or a vacation. One of the ways you’ll know when to hire in small business is when you find yourself working 52 weeks a year and never getting time for a break. You should take a vacation so you can relax and rejuvenate yourself.
Customers Can’t Reach You
The first time you miss a customer call, you’ll likely be shocked. If this becomes the norm, then it’s probably time to hire new staff to take these calls so that customers can get through when they need it.
How Many Employees Do I Need to Hire
It’s important to consider your revenue, your goals, and what’s happening in your business before you add new staff. One expert suggests considering employee costs as 25%-40% of your net sales or your net revenue. This means that if you have the margin to add new staff, you can.
How to Hire Employees for Small Business
If you want to know how to staff a small business, you need to understand your business requirements in advance. Know what you want to achieve by hiring an employee, and take into account your business needs. You’ll also need to understand the skills and experience needed to get the job done.
Consider Financial Assistance & Loan Options for Help
Look for other options for funding. You might be surprised at all the different ways there are to fund hiring an employee besides paying out-of-pocket. There are small business loans and grants, tax credits, lines of credit, and more.
Small Business Loans
Small business loans are a great way to get funding for your business. They are often easier to get than larger loans, and can help you grow your business faster. They can be used for a variety of purposes, including buying equipment, hiring employees, or expanding your business.
Revenue Advance
Another option is a revenue advance. A revenue advance is a type of short-term loan that allows small businesses to borrow money from their future sales. When you take out a revenue advance, you’re essentially borrowing money from customers who will pay their bills later in the month.
Installment Loans
Installment loans are a good option for small businesses looking to hire new employees. An installment loan allows you to borrow money in one lump sum and then use it and pay it back over time.
Conclusion
Running a business is hard work and can be overwhelming. Learning when to hire new employees can help alleviate a lot of the burdens you face. If you find yourself struggling with customer service or the quality of products/services, it might be time to hire someone else. And if you need help funding your new employees, our team at Fora Financial has multiple lending products to meet your needs.