According to Wes Dollar, serial entrepreneur, you know it’s time to hire when you’re wasting time and losing money by trying to do everything yourself.
If you’ve decided it’s time to hire a new employee, don’t rush it. Take your time to ensure you’re hiring the right person.
Telltale Signs It’s Time to Hire
If you’re unsure if it’s the right time to, here are four telltale signs you should hire an employee:
1. You’ve run out of hours in the day.
If your workload is overflowing and your work quality is suffering, it’s time to hire some help. You might also be spending too much time on areas outside your expertise and not enough time on the activities that are the most important to your business.
2. You avoid taking on new clients or finding new customers.
Maybe you’ve started to turn down work or clients because you barely have time to support your current clients, or you start panicking when a new customer walks through the door because you don’t have enough time to help them. If that’s the case, hire a new employee who can help you take on more work so your business can grow.
3. You know exactly what you’re looking for.
You’ll know it’s the right time to hire a new employee when you know exactly where you need help. You could hire a jack-of-all-trades, but chances are you’ll need the employee to perform a specific function to successfully foster growth.
4. You can afford a new employee.
Once you’ve done the math and determined that the potential value the employee could add is greater than what they’ll cost, go ahead and hire that employee. Remember, the cost of an employee is more than just their salary or hourly pay. You’ll also have to consider benefits, unemployment insurance, workers’ compensation, and the employer’s share of social security and Medicare taxes.
Dollar points out that you’ll take a hit to your profits when you first hire someone, but ultimately, your new employee will increase your profits.
Still Unsure? Hire a Contractor
If you’re not quite ready to commit to an employee, but need help with a specific project, hire a contractor to test the waters. Set a timeframe and evaluate at the end whether they helped your business and if their skills are needed long-term. If they helped and you need their skills, hire the contractor as an employee or find someone with the same skillset.