Is it time to hire help?

January 28, 2013

Every entrepreneur reaches a point where they know they need help. Customers need tending to, websites and social media outlets need managing, orders need to be filled, e-mails and phone calls have piled up. Suddenly your one-man operation is too much too handle alone. And so the dilemma arises, is now the right time for hiring and what kind of employee do I need? Would it be more cost-effective to hire a part-time or full- time employee? Would an as needed contactor be a better option? What can I afford?

“Taking on a new expense, like hiring an employee, is simply an investment on which you expect a return. People who are successful return 10 to 20 times over their investment,” said Craig Jennings, president of Powhatan Consulting.

Let’s determine the costs and benefits of bringing on a new member of your team.

First, what is your time worth? As an entrepreneur, your business is your baby. You have watched it grow and have taken all of the responsibilities to see that it is nurtured and taken care of. Time to cut the cord! Your “CEO” time as Jennings calls it, is being affected. “If you can hire somebody to do the $15-an-hour work, then you can do the $300-an-hour work,” he said. This is a classic issue for small-business owners. They are too busy doing employee work.

Second, don’t limit yourself to full-time employees. Start small when adding help. Your business may benefit just as much from having a virtual employee (I love this option!) or a contractor that can take over a specific project for a limited number of hours. This will take some responsibilities off your plate.

When you do decide to hire on a full-time employee, hire on a trial basis. This will ensure that you are selecting the right people to help your business grow. Robert Half said, “Time spent hiring is time well spent.” Don’t jump into it.

Take into consideration how hiring an employee will benefit your business. What do you want to accomplish? Will hiring help you get there? Melinda Emerson, a small-business coach, encourages small-business owners to think about all of these things.

“Hire because your revenue shows that there’s demand in your business,” says Emerson. “If your cost-benefit analysis shows that hiring someone gives you more time to sell, then you should do it. For example, if you spend more time selling, then you can increase your revenue by 40 percent.”

Finally, consider the cost of not hiring. If you are having a hard time loosening the reigns (and the purse strings), think about this analogy used by Jennings. “Running a lean staff is like running an engine with the minimum amount of gas. Sometimes, running in neutral is the right thing to do. But sometimes you can’t manage in normal traffic without using gas.” If money or budget is your concern, think about competitors in your field. Will you be putting yourself in a direct disadvantage if you “stay in neutral”? Sometimes paying it forward in faith that your investment will come back to you is worth the risk. Do you want to be stuck floundering with busy work when you could be out selling and making more of a profit? It is time to leap.

Start today. Look at your budget, determine what kind of employee you need and would be most beneficial for your business. Now work it into your plan and start writing a job description! You will be so glad you have more time to do what you do best!

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Keri Murphy and the Inspired Living team is on a mission to empower people to use their unique talents in a way that allows them to Dream, Live and BE all that is possible through speaking, coaching, celebrity interviews and original on-line content. Get Inspired at inspiredliving.tv