Technology makes It’s easier than ever for you Successful Own business. But for small business owners who want to grow their company, at some point you may Need to consider hiring your first employee. But how do you know when is right and how do you do it? Here are the questions you need to ask yourself and the steps you need to take when hiring your first employee.
Are you busy enough? If your business has a lot of ups and downs in cash flow-for example, if you own a seasonal business-then you may sometimes be completely stuck, and sometimes you are fiddling with your thumbs. During busy times, you may want to hire employees. Not so fast! Before hiring your first employee, you must have enough stable work to keep them busy even during slow periods. Otherwise, you will have to let the employees leave-which is unpleasant for both of you. In addition, ensuring stable work is something you are willing to delegate, and you can train others to do it. If you don’t have enough stable employees to work, hiring temporary employees, outsourcing to independent contractors or accepting interns are better solutions when you need additional help.
Do you need an employee to take your business in a new direction? As your business develops beyond the fledgling stage, you will want to expand into new areas-which may include areas where you lack effective solution experience, time, or skills. For example, a jewelry designer who sells goods online may decide that he also wants to bring them into retail stores across the country. If they are not good at sales or cannot actually travel the country in the sales call while still maintaining the rest of the business, then hiring an employee in charge of sales may be the best way to achieve these expansion goals. Are you ready for finances? Hiring your first employee is not cheap. First, there is the cost of promoting the position, possible background checks, and the time cost of reviewing resumes and interviewing candidates.
Once employees join, their hourly salary is not the only expense you have to deal with. You may need to buy new equipment for that person, such as computers and workstations. You must also pay Social security taxes, health insurance taxes, payroll taxes, and state unemployment taxes. If you plan to provide employee benefits, such as health insurance or 401(k) plans, know that benefits can cost 20% or more of an employee’s salary. Finally, you may need to purchase workers’ compensation insurance. Your company’s cash flow is the decisive factor in whether you are ready to hire. On payday, you must have enough cash in your account to pay your salary-you can’t ask employees to wait a few more days to get their salary, because your customer hasn’t paid you yet. (If you find that you do not have enough cash to pay your wages, short-term loans can help you tide over the difficulties, but this is not a solution you should continue to seek.)