There’s one golden rule we’ve found applies to all businesses: in order to grow, you must eventually hire more people!
Of course, that’s not to say it’s going to be easy.
Hiring a new team member can be an extraordinary opportunity. But it can also present somewhat of a risk to your business financially.
The good news is you’re probably already aware of this – which is the first step.
But we – The A Firm’s Proactive Accountants Team – wanted to take the time to really map out the signs that you’re in a good position to hire.
Otherwise, we’ve added a few golden tips to help you get you there!
The Chicken And The Egg – Wait, Are We Still Talking About Business?
Typically, there are two scenarios in which a business owner like yourself would consider hiring someone new:
- A sudden windfall of incoming work: You may be lucky enough that you have plenty of work practically demanding hiring someone new.
- You’re ready to grow, but first you need the work: Or, like most small Aussie businesses, you could be on the verge of growing but still need to secure more work once you make that new hire.
If you’re in the second category, then what comes first?
Do you wait for an influx of more work so you can justify the expense of a new hire?
Or do you hire and begin training your new staff now so that they are prepared for that predicted influx of work?
It’s a conundrum as old as time.
Here are a few signs you are ready to take the new hire leap:
#1 You’re Just Flat Out All Day Every Day
Sometimes, this is one of those lucky situations that just happens: one referral can turn into two, then four, and before you know it…
Suddenly, you are overwhelmed with an influx of work that you can’t handle on your own!
Or, maybe you can handle it on your own. But it would take you away from other vital parts of your business, especially growth.
These are the best times to hire new staff.
But it’s crucial that you understand why you were successful in the first place and how you can keep this momentum going.
Because these types of situations are the most prone to financial overextensions, such as:
- The influx of work eventually drying up
- Not being able to replicate the windfall a second time
- Not understanding how to acquire new leads and work orders at a lower – but more consistent – rate
- Having a full time team member that now has no work to do & is slowly eating into your profits
#2 Have A Large Client Coming On? Schmooze Them With A Dedicated Team Member
Usually, we advise against putting all your eggs in one basket.
And this typically what relying on a single large client can do to a business. There is always the threat of them leaving and potentially throwing your cash flow into haywire.
But, there are some occasional circumstances where focusing your efforts onto a single client can work well:
- You have a trusted relationship with them and know they won’t leave anytime soon without warning
- A solid contract that explicitly states you will both work together for an extended period of time
- A clause that states they need to give you a three month warning before they leave
- You have enough supplemental income that if this client leaves, your business will be able to survive without them
If all of the above checks are met, then it’s a good opportunity to hire new staff.
New team members can help with the large onboarding process and the work orders that will stem from a client of this caliber.
Furthemore, the best way to keep big clients happy is to give them time and attention, such as meetings, phone calls, reports. Things that may take a lot of time, but pay off in the end.
And what better way to keep someone happy than to give them a full time staff member dedicated to their account?
Just make sure your new hire understands how important it is to keep them happy!
#3 Your Inbound Sales & Marketing Is Perfected
You must have a system or method in place first to ensure you can acquire new work to hand off to your new team member.
Some businesses strike lucky: they will become swamped with work orders early on and need to hire new staff.
However, you are better off taking things slow first.
Once you figure out how to acquire new sales, leads and work, then you can infinitely scale your business. You can grow your team as large as you want once you’ve figured this out.
Business owners who are swamped early may overextend themselves with new hires.
Once the work dries up they will not be conditioned to actively finding new work.
How To Make The Leap Less Scary
There’s no getting around it: hiring any new team member is intrinsically linked to the financial health of your business.
So, the best thing you can do? Make sure your finances are not only healthy but soaring!
And there’s nobody better qualified to help you make the leap and hire a new team member (while making sure you can afford it) than The A Firm!
Give us an obligation-free call today and we’ll help you grow your team and savings.