You have grown your startup enterprise to the point where it has become imperative to hire an employee. Maybe you need to hire a bookkeeper or an administrative staff so you can focus more on the business. Here are some things you need to consider critically before hiring your first employee:
- Do you really need one now?
If you realize you are starting to work an unreasonable amount of hours, then yes, you need an employee. But you also need to determine if there is enough work for him to do. You have to decide what exactly you need him for, and ask yourself if there is enough work to fill a workday. For instance, if you own a retail shop and you realize that selling and bookkeeping are becoming too hectic, you can hire someone specifically for bookkeeping while you focus on sales.
- Are you registered?
It is one thing to start a business from the corner of your room, but a different thing entirely when you start having employees. Proceeding to hire people is a recipe for disaster if your business is not registered and recognized by the government.
- Is the work environment conducive?
Some people set up their employees for failure without having a conducive work environment. You need to be prepared for the employee. What rules have you set up in your organization? Have you compiled his Job Description? How would you measure his Key Performance Index? You need to make sure you have all these in place before you make that employment decision.
- Can You Pay?
While the workload is a sign that you should employ someone, another key question you need to ask is: are you making enough to pay this employee? If you have a steady stream of income, then good for you. But if you do not, what happens when you have to decide whether to pay yourself or the employee? Who gets the check? If your answer is you, then you are not ready to employ anyone.