For the sole proprietor, knowing when to take on an employee can be difficult. Not only will you have to start paying someone a salary, but you may feel as though you’re giving up some of the control that you’ve enjoyed. Having to rely on someone else to complete the work that you’ve been doing yourself can be stressful. There will come a day for most small business owners when the amount of work is simply too great to be done by one person. Here are some considerations to take when making the decision to hire an extra set of hands:
1.Is Your Business Suffering?
If your business has gotten off of the ground, chances are that you may have more work than you can handle. If you find yourself working 12 hours a day instead of eight, failing to answer emails or return phone calls, or even see a drop in customer satisfaction, it may be time to hire help. It’s fantastic that you’ve made your business grow, but you will quickly see it fail if you can’t keep up with its demands.
2.Are There Tasks You Can Delegate?
While you may be hesitant to give up control of some aspects of your day-to-day operations, there are undoubtedly tasks that can be outsourced safely. For instance, consider hiring someone to keep your books or someone to answer customer queries. If you sell goods, you can hire someone to pack and ship boxes or make deliveries.
3.Are You Making Enough to Pay Someone Else?
Don’t forget that you’ll need to pay someone a fair wage to work for you. If you have the money to pay someone at least minimum wage for their efforts, hiring someone to help you out is a good idea. Before you decide how much you’ll be paying someone, take the time to consider the type of person you want to have working for you. You may find a high school or college student that is willing to work for $8 an hour, but you may have to shell out a couple more dollars if you want a reliable adult.
4.Independent Contractor versus Employee
When you hire someone on as an employee, you’ll have to pay employment taxes and workman’s compensation, among other things. If you don’t want to deal with the hassles of government paperwork, you may want to consider hiring someone as an independent contractor. Be sure to research the implications and benefits of both types of workers before you make your decision.
5.Temp Workers
Instead of hiring a full-time employee, you may want to opt for a temporary or seasonal worker to help you. If you need someone to help you with a short-term task or during a busy season, for example, a temporary employee may be better suited to your business. If you don’t have year round work to give an employee, hiring someone on a temporary basis can give you the help that you need only when you need it.
If you’re considering hiring an employee, it surely means that your business has taken off; congratulations are in order. Another set of hands, be they from a full-time employee, a temporary worker or an independent contractor, can be just what you need in order to continue to grow your business.
– Julie Pagle writes for www.accountant.org where you can read about the tax accountants in your area.
