Very recently I was faced with the task of deciding if I needed to hire an employee to help me expand my business or trying to keep going with everything the way that they are currently being run. This is not an easy task by any means and if you were to look at my “cash” you may wonder why I am even thinking about this. Well, here is the process I went through and hopefully it will help whomever is reading this learn something as well.
This is my current situation. My business has been growing at a slow but steady pace up until August 1st and it has grown, what I consider to be, exponentially over the past 3 weeks. This is a great problem to have right? The only issue is that most of my members come to me with a back log of bookkeeping, data entries and reconciliations to do; sometimes for an entire year or more. This is one area that I thrive in and I love to help people get their books caught up and this is a task that in most cases takes time. The downside to this is that the clientele that I have already gotten caught up and have them in a space where it now just simple data entry (or as we call it, the day-to-day bookkeeping), can sometimes get lost in the shuffle or the data entry just doesn’t happen because I am focusing on the new clientele that have a longer list of “to do’s” than the others. To me this means that those clients are not getting the same service as the ones that need more help at that time. My goal is to ensure that all clients know that they are just as important to me no matter what membership they have or how much they pay me.
This means that I have to find a way to ensure that all of my clientele are getting the same Clarity service but afford me the time to work on the clients that need my attention. Here is my solution…
After discussions with my wife and a couple of business colleagues I hold in high regard, I made the decision to hire my first actual employee on a part time basis with the following job description. The employee will be handling the clients that are caught up and completing the day-to-day entries while I handle the clients that either have a more complex file to work on or they have a lot of catch up to before they come to the regular day-to-day tasks. The employee will work approximately 10 hours a week for the time being which will free me up some time to work on business growth as well as the compile or time-consuming files.
This was not an easy decision to make because truthfully speaking, my cash flow does not really have enough to warrant this however, if I don’t do this, I risk the potential loss of valuable clientele which would be less revenue almost guaranteeing that I would not be able to afford an employee for long. The truth is, in my opinion, there is never going to be an exact right moment where you will be able to know 100% what the right thing to do is. If you are finding yourself in a situation like this ask yourself the following questions:
- What will hiring an employee do for the business?
- Is the potential increase in revenue worth the short-term loss for now?
- In what ways will your employee be able to help you do the following things:
- Earn higher revenue;
- Focus on tasks that are going to earn the company the higher revenue; and
- Grow the clientele base
If you can answer all of those questions and you are satisfied that you have answered them all truthfully, then move to the next step, which is… LIST THE DOWNSIDES of hiring someone:
- What are the financial implications to you and your business?
- How are you going to be able to ensure that your new employee is getting paid?
- Are you going to have to less pay in order to pay your employee?
When you are answering these questions, be truthful and actually brutally honest with yourself. If you can do that, and figure out that everything should work out fine, they you know your next steps. If you cannot figure it all out, then my advice to you is to wait until the criteria you are setting up can be matched and you are comfortable with the decision you make.
Trust me, once you make this decision you will still have feelings of stress, or “buyer’s remorse” because now you are not just responsible to you and your family, but you are now responsible for your employee and their well-being. Make sure you know everything that you have to do in order to set up a new employee and then go for it!!! Congratulations!
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