Your First Hire
June 20, 2011 § Leave a comment
So, you’ve started your business, you’ve been growing it, you’ve gotten those first calls and little by little, clients and work have started to mount. Now you’re thinking of hiring that first employee. This can be a scary time, since only a short time ago you were probably barely breaking even. Here is a good proposal on how you can plan accordingly if the next step really is bringing in your first hire.
From CNN Money:
Although there is more than one option for small business owners, bringing an employee on board is many employer’s preference. First it’s recommended that you project what you’ll be doing in the next month, three months and six months, based on the business that’s coming in already.
Next assess which jobs – things you are doing now – it would make sense to hire for: accounting, administration, estimating, storage and warehousing are just a few of the jobs you may want to give away so you can concentrate on what you do best.
You also have to figure out how to afford a payroll. “Then work out how much time you are putting into other tasks, ” and calculate what you can put into new business generation if you are freed up.
Another alternative to making a full-time hire is to bring in contract workers on a project basis – you’ll need to know when the workload demands it. Or, as Jo Prabhu founder of Long Beach, Calif. staffing firm International Service Group suggests, you can hire someone on an hourly basis as part of a “contract to hire.” That way you can assess his or her skills and whether you’re ready to hire someone full-time.
“Make it clear to the potential employee, so that they know how long they have to prove themselves,” Prabhu says, recommending three to six months as a good trial period. “Then you can set a date when you will sit down with them to determine whether or not you want to hire them.”
Hope you’ll leave me your questions and comments on this post!