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When should your start up take on staff?

With any new business, there will eventually come a turning point where taking on staff will be necessary to facilitate further expansion. This guide will take you through some things you should consider as your business nears taking on their first staff members.

When should your start up take on staff?

Deciding when to take on staff

Choosing when you begin searching for additional staff will vary from business to business. However the reasoning to begin that search is often defined by a few key areas:

  • Increasing workload
  • Increasing demand
  • Adding new skills to a business
  • Launching a new service

There are points where growing your business alone might be impossible, facilitating the need to bring on new team members. Extra workload might be interfering with a work life balance and bringing in someone new can ease the burden.

The reason will vary but the things to consider when taking on new staff remain the same.

What would your new staff member’s role be?

One of the most important things to consider is what your new staff member(s) duties and responsibilities would be in relation to what you already do. Is it a case of them doing something completely new to enable you to expand your business, or will they simply alleviate some of your administrative responsibilities to reduce stress and help things run more smoothly? The latter may be more a case of increasing workflow efficiency, while the former can be a way to break into a new market and tap into a new revenue stream, ensuring your new and future hires can be paid for.

Whatever reasons you have for hiring, make sure that you define their role beforehand instead of hiring in a blind panic because you’re overworked. It could make the hiring process far more stressful and may lead to necessary rehires down the line, especially if you realise they aren’t a good fit for your company culture or seem to not have the skillset you wanted. This is why due diligence is so important when hiring: you search a wider pool of applicants, and find exactly which potential hires are the perfect fit for you.

Can you continue to hire in future?

Crossing the threshold of taking on staff for the first time can be equally as rewarding as it is stressful. It’s a great sign that your business is growing to the point where you need extra help to keep things running smoothly. However, the first hire is also important because you can now plan for the future of your business. Do you expand the roles of staff you already have, or continue to expand and grow your workforce as more business comes in?

Considerations such as this are why business projections are so important: they give you a framework for when you may be unable to function at full efficiency as one person, but also when you could potentially afford to pay for new staff. They are also important because, as your business grows, it may become apparent that a strictly linear “one new hire every x months based on projections” strategy doesn’t work all that well. Instead, tapping into the potential of the staff you have and encouraging them to rise in your business’ hierarchy will increase the expertise of staff, while also rewarding them for sticking with your business as you continue to expand. If you’re not able to offer sizeable salaries as a start up, then find the people who want to share in your vision, who want to be involved in your field and thrive in it. Be upfront about who you are and the core values you stand for, and potential hires may be more eager to join you and grow alongside your business.

How can FSB help with hiring staff?

FSB Business Creation provides people looking to establish their own business access to a range of services designed to help and support new start-ups. Including help and advice on hiring new staff and expanding your business.

Other services include:

  • Help with company formation
  • Insurance services
  • Payment services
  • Networking support

To find out more about how you could benefit from FSB Business Creation get in touch with a member of the team or visit our FSB Business Creation page.