Is It Time to Hire Your First Employee?
More than 600,000 small businesses are started each year in the U.S.A.. This is great for the economy – especially for job creation. Many small businesses reach a point where they realize they need to hire that first employee. It is a milestone in business to know you need an employee to help build on your success. But how does an employer know when is the right time to hire that employee – especially for that small business hiring for the first time?
Do you have too much to do? Just about every small business owner is “too busy,” that’s the nature of owning a small business. But when you reach the point where you simply cant come up for air, its time to delegate some of these responsibilities to someone else that can help out. You cant do it all alone. Having an extra set of hands could really make a difference. It could mean you would be free to meet with prospective customers or send out proposals.
Should you hire a full time or part time employee? Or should you hire an independent contractor? If you’ve decided it is time to hire that first employee, you have many decisions to make. The first is deciding how much of a workload you have. Do you have enough of a workload to be done by a full time employee, or would it be best to hire someone part time? Or should you hire an independent contractor? Note: while there are benefits to hiring an independent contractor, such as not paying benefits for them, there are still other benefits to having a full or part time employee available to you.
What other goals do you have on your business plan? Now is the perfect time to review your business plan and note what other goals you have for the coming year or even the next few years. If you are hiring that first employee, look at how they can contribute to these goals. The ideal employee offers you skills and abilities that will help you reach your goals that you have set in your business plan. They may even offer you additional skills and abilities that contribute to your business other ways.
Make friends with Uncle Sam. If you are hiring that first employee, you’ll need to have them fill out tax paperwork and to keep track of their taxes for each paycheck or pay period. Be sure you are “friendly” with your Uncle Sam if you’ve decided to hire a first employee. If you are uncertain of what to do, visit the Small Business Administration to learn what you’ll need.
If it is time to hire your first employee, make an investment in their skills and training. Remember: the more they know, the more they can contribute to your success. Whether you send them for classes, lectures or seminars or simply teach them new skills, it can only help them do a better job in their position, working as your first employee.