3 Ways to Know You're Ready to Hire Support (and you can afford it!)
Summary: As an entrepreneur, do you ever find yourself overwhelmed by the sheer number of hats you have to wear?
Are you almost paralyzed by the pressure of doing it all alone? Let me be the first to tell you that I get it!
On the one hand, wearing all the hats in your business is normal…at the beginning! On the other hand, this kind of effort is only sustainable for so long. At some point, you’ll be faced with a very pivotal realization... You NEED to hire support.
This is a natural part of the business growth process, to which I get the fear-induced response, “Well, I don’t know if I can afford it?”. That is a valid concern. However, I’ve got some tips and tricks to help you navigate these murky waters. Let’s get started!
3 Ways to Know You’re Ready to Hire Support (and can afford it!)
1. Have A Strategic Plan To Grow And Scale Your Business
About twenty-five percent of the time, a business will have enough money in the bank to cover the cost of hiring. That is easy to recommend that they move forward and hire.
The other 75% of the time, no money is sitting in a secret bank account waiting to be used. We have to make a plan to pay for a new hire.
What I see happen for many entrepreneurs is that they take on full responsibility for the person they plan to hire. The weight of that decision is heavy. It leaves a fear of having to afford the cost of that person forever. The future is uncertain, which validates their cause for concern.
However, if a strategic plan is developed ahead of time, it can help build a sense of security and confidence for this long-term investment.
2. Understand The Return On Investment
Typically, the first person you add to your team is for an administrative role.
This is because administrative tasks need to be taken care of to allow yourself to focus on the elements in your business that move the needle. An administrative hire may not be a revenue generator, but you need to consider what this hire can help you gain. Will it help you:
- Sell more?
- Show up for your clients more?
- Earn more?
The answers to these questions must be considered when calculating the return on investment. Even without revenue being generated specifically by the person, there is still a return on investment.
A return on investment can be in dollars, time, or stress level reduction. Once you gain clarity, the decision to hire or not will swiftly become much more manageable.
3. Understand The Potential Impact Of NOT Hiring Support
Personally, I started truly thinking about the impact I was seeing in my business of not hiring support. The biggest cost was the capacity to grow. I started looking at different ways to hire and shift my business forward.
At first, I outsourced a vendor and hired an employee. I immediately felt the positive impact, and I could facilitate this incredible growth in my business in a short time.
I was able to identify:
- Who I needed to hire
- Why I needed to hire them
- What positive impact they would have on my business
- What downfalls I could face if I waited any longer
How did I manage to do that?
I had a plan! Since then, I have chosen to employ W2 employees. I have 7 at the time of writing this. I already have a strategic plan for my next few hires and what events will trigger them to start.
Conclusion:
At the end of the day, the question isn’t IF you’ll need to hire someone to help you with your business. The question is WHEN.
Using the three key indicators discussed above, you can make an informed, strategic decision as to when exactly that is. Need help seeing what you need for your business? Reach out and let’s see if working with a business strategist could help you.