You have officially launched your company and it’s doing well. There is so much to do, in fact, that you can no longer manage every task on your own. You have reached an exciting milestone of needing to hire your first employees. This often looks different in start-up organization than it does in established companies.
Outsource as Much as You Can Before Hiring Employees
Taking on a new hire means you must commit to paying a salary and benefits even if the person turns out not to be a good fit. With the average cost of advertising an open position, interviewing candidates, training, and onboarding running around $4,000 per employee, you need to feel certain of your investment before bringing someone onto your team. Fortunately, it’s easy to outsource common administrative tasks such as accounting, payroll, data entry, web design, and marketing.
The best way to spend your time as a business owner is by completing tasks that bring in revenue. If you find yourself bogged down in non-revenue producing tasks, ask yourself these questions to determine what to outsource:
- What do you see as your top strengths and weaknesses?
- Do you have time to learn new skills you don’t already have?
- Which tasks require regular attention?
While these services will likely run higher than the hourly rate of an employee, you only pay for the time required to complete the work. You also don’t need to provide benefits like health insurance and paid time off. It’s best to keep your expenses as low as possible and exhaust other options before hiring your first employee.
Hire Talented, Flexible People Who Can Grow with Your Organization
The first people you hire will be those who can help keep the company operational by getting your product or service to market and assisting customers. This isn’t the time to worry about bringing on executives. Word of mouth advertising is often the most effective way to find great employees for your start-up business. Ask other business owners in your network to put the word out that you’re ready to take on at least one new hire. Your attorney, accountant, and other advisers might have leads for you as well.
As a small business owner, it’s important to approach the hiring process differently than you would if you worked for a large corporation. That means you shouldn’t be too impressed with resumes but rather focus on candidates with your desired experience who demonstrate willingness to take on many roles. People who have worked at much larger companies are accustomed to more clearly defined roles, regulations, and processes for completing work. You need employees who can jump in without direction to do whatever is necessary for company growth.
While you may not be able to offer the same salary and benefits as a large corporation, some employees value the opportunity to grow with a company more than certain perks. You can certainly play this up during interviews. Let the prospective employee know how much you value the input of the team members you bring on and how to go about advancing within your business. This should pique the curiosity of someone who would make a good fit.
Follow All Legal Requirements with Your New Hire
You will need to obtain an employer identification number and register with the labor department in your state before you can hire an employee. You will also need to get workers’ compensation insurance and follow several other federal and state regulations. It can all be overwhelming for new business owners, but Juvo Business Group is here to help. Please contact us today to learn more about how business coaching can help you get off to the best possible start with new hires and more.
