When your fledgling business begins to take off, and the workload becomes too much for you to handle, it may be time to take on your first members of staff. The cost of committing to providing salary and benefits to your first hire is considerable, so a cautious approach is recommended.
Consider the alternatives
Do you really need to take someone one? One huge benefit of the global economy is the ease with which a wide range of services can now be outsourced. From public relations, marketing, accounting and virtual admin assistants - the range of available skills is extremely broad. It's likely that using such a service will often mean you end up working with someone who has far more knowledge and experience in the field than anyone you would be able to afford to hire – this is why more than 70 percent of small businesses outsource their tax preparation work. This can potentially allow your business to grow faster so that you reach the point that you need full-time workers more quickly.
Utilize your networks
Entrepreneurs typically find their first few employees by asking for recommendations from friends, family and business associates. One huge benefit of this approach is that such employees can gain a greater level of knowledge and insight into your plans in advance through such connections. This works both ways. With up to half of all job candidates making false claims on their resumes, taking someone on recommendation also means you have a better chance of finding an employee who genuinely has the necessary experience. As new employees join the team, you can then take advantage of their own professional networks to attract further quality hires.
Provide a professional working environment
Many entrepreneurs spin wonderfully mythical stories about how they started their enterprises in their bedrooms or the garage of their parent’s homes, but in today’s online, digital economy where start-up showcases, venture capitalists and ICOs can all contribute to rapid growth, such humble surroundings won’t cut it with your new hires for long. Investing in office space early on will help your team focus on the task at hand and show both them and any potential backers that your vision of the future is a serious one. Don’t be put off by the fear of being tied down with a lengthy, expensive contract. Click here to find out about a range of amenity-rich workspaces available on flexible terms that will enable your business to thrive.
Prepare for the worst
If someone you hire turns out to be a poor choice or damaging for your company, you'll have no choice but to let them go. If you keep in mind right from the start that this kind of mistake could lead to costly severance pay and possible litigation, as well as the downtime and resources needed to find a replacement, you'll take more time to make your decision. Wherever possible, include a probationary period in any contract so that both sides have a quick and easy way to end the arrangement if things are not working out.