NFIB

Time To Hire Your First Employee
05/ 17/ 2002

Many small business owners reach the point where their business cannot continue to grow without adding employees. There are only so many hours in a day, and one person has only so much energy. In today's Workshop, contributor Jeffrey Moses lists seven questions to consider to help you decide if the time is right to place those "Help Wanted" ads.

1. Are you working more than 50 to 60 hours a week, plus some weekends? Constant overwork can lead to stress and possible health problems.

2. Are you continually turning down work? It may be possible to determine how much added income you would receive from being able to accept the work and calculate whether it would pay for your new employee.

3. Are there some tasks that take up an undue amount of time, such as accounting, ordering or answering customer questions? These can take time away from your real job, and it might be more effective to train someone else to handle these aspects of the business.

4. Have you started delivering late to customers? Missed deadlines could mean that you're overbooked and need an assistant.

5. Are friends and family members telling you to slow down, or are they complaining that you're never around? When family members keep telling you to hire someone, maybe it's time to listen.

6. Are people asking you for employment? This is often an indication that your business has grown to the point where it is being recognized as established and prosperous--and may indicate the need for adding staff.

7. Finally, are you beginning to feel disillusioned with your work, wondering if all the trouble has been worth it? This feeling may be the result of fatigue and strain and could be remedied by bringing in an employee or two to take some of the burden off you.

Becoming an employer brings with it tremendous added responsibility. YouÆll have to file a seemingly endless array of forms with federal and local governments and pay withholding taxes, workers comp and medical insurance. Not to mention making space for the employee and purchasing a new desk, computer, tools and more. In addition, you'll have to be at least somewhat certain that you'll continue making enough money to pay the employee week after week. But all of this will seem minor once you see your business growing and your workload lightening.

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