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    5 Questions To Ask Before You Hire Someone

    You’ve been in business a while now and it’s going from strength to strength. You’ve built a strong reputation in the market place with a solid base of loyal customers - and in true entrepreneurial style you’ve done it all yourself.

    If yours is anything like most small businesses, then its likely been a tough journey. Think - long hours, juggling way too many balls, not to mention the lack of income that can plague any business when they’re just starting out.

    Keeping costs to a minimum has been crucial, so you’ve worn every hat there is just to stay afloat. Thing is, some of those hats don’t fit you so well. Maybe they’re too big, or maybe they’re not big enough.

    If this sounds like you then it might just be time to consider bringing someone else into the business. Someone who can free you up so you can take things to the next level.

    “Whoah….hold your horses - that sounds risky” I hear you say.

    Well yes, you’d be right. There are risks involved with hiring staff for sure, and there is a lot to get your head around. But here’s the reality - you probably can’t keep doing everything yourself forever.

    So when exactly is the right time to become an employer? Before you jump in, ask yourself these 5 questions.

    1. Are you constantly stressed?

    If work cuts into your precious family time and you’re constantly feeling pressured and overwhelmed, then recruiting someone could be just what you need to deal with your huge workload.

    In the early stages of any business you can expect to be spending time on tasks that don’t generate any revenue. Invoicing, accounts, social media activities and other administrative responsibilities all take up valuable time. Initially that’s fine. You do what you have to do right? Long term though, it may not be sustainable and you don’t want to risk burn-out.

    2. Are you turning down work?

    Time constraints, especially for service based business – where you’re essentially trading dollars for hours, can mean that your revenue is capped. Realistically there are only so many hours a day you can charge out. If you’ve gotten to the point where you are frequently turning down work, then recruiting a team member could be the way to go so you can better leverage your time. The opportunity cost of not hiring can be huge.

    3. Are you spending time on tasks that don’t play to your strengths?

    You’ve probably been doing everything in your business so far because you’ve had to. You’ve learnt a lot, but doing tasks that you’re not so great at or you don’t enjoy is keeping you from growing your business. Hiring someone to do those tasks for you could be worthwhile.

    4. Can you afford it?

    Hiring a permanent employee can be costly. There is salary of course, but there is also Kiwisaver, ACC, holiday pay, annual leave as well as recruitment and set up costs to consider. Here’s a handy calculator to help you break down the potential costs.

    5. Is there enough extra work?

    Spend some time mapping out exactly what needs to be done on a weekly basis and work out how many hours it should take. If you don’t think it is enough for either a permanent part-time or full time employee, then it may be that you need to consider other options. A fixed term contract, a project based independent contractor or outsourcing might work better for you.

    Taking on your first employee is a huge leap of faith but it’s also a sign that you’re heading into an exciting new growth phase for your business.

    This blog was written by Ali Hunter from Career Insights. You can find Career Insights on Facebook and Instagram.

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