Time to Hire? What Every Entrepreneur Should Consider First
If you're a small business owner wearing all the hats—sales, marketing, operations, customer service—you might wonder: Is now the right time to hire someone? It’s a big milestone. Your first hire is more than a resume; it’s a leap of faith and an investment in your business’s future.
So, how do you know if it’s time? Let’s break it down through two major lenses: productivity and finances—plus some possible alternatives.
Productivity: Are You at Capacity?
1. You’re consistently working beyond your limits.
If 12-hour days are your norm and weekends have become extensions of your workweek, that’s a red flag. At first, hustle is part of the game, but if your to-do list is growing faster than you can tackle it—and you're missing opportunities because of it—it’s a sign that your workload has outgrown a one-person operation.
2. Important tasks are falling through the cracks.
Are customer emails going unanswered? Is your invoicing delayed? Are you skipping marketing because you don’t have time? If core business functions are being neglected, your productivity bottleneck could be hurting your growth and reputation.
3. You're turning down work.
This is a big one. If you’re saying “no” to new clients or orders because you physically can’t handle more, hiring help could unlock revenue you’re currently leaving on the table.
Financial Considerations: Can You Afford to Hire?
1. You have steady, predictable revenue.
Before bringing someone on payroll, your income needs to be stable. You should be able to project with reasonable certainty that you'll have enough work (and revenue) to justify and sustain their salary/wages for at least 6–12 months.
2. You’ve crunched the numbers.
Hiring isn't just about the salary or hourly rate. Think about payroll taxes, benefits (if offered), equipment, onboarding time, insurance, and compliance items. A good rule of thumb: the new hire should either free up your time to generate significantly more revenue, or they should directly generate income themselves (such as a salesperson).
3. You’ve identified the ROI.
Ask yourself: What will this employee do that will either bring in more money or save me money? If your time is worth $100/hour and you’re spending five hours a week doing $20/hour tasks, it might make financial sense to delegate.
Not Ready to Hire? Consider These Alternatives
If you’re on the fence, you’re not alone. Plenty of entrepreneurs pause before committing to a full-time hire—and for good reason. Here are some smart alternatives to consider:
1. Outsource to freelancers or contractors.
Need help with admin work, design, writing, or bookkeeping? Sites like Upwork, Fiverr, and LinkedIn can connect you with skilled freelancers. You only pay for what you need, without the long-term obligation or the additional work of payroll.
2. Hire a virtual assistant.
For recurring but time-consuming tasks like inbox management, scheduling, and data entry, a VA can be a game-changer. You can often start with just a few hours a week.
3. Use automation tools.
Before you bring on a person, look at tools available to automate some of your work. Can email follow-ups be automated? Can your invoicing or customer onboarding be streamlined with software like HoneyBook or QuickBooks? Investing in the right tech might delay the need for a hire while boosting efficiency.
4. Part-time or project-based help.
If you’re testing the waters, consider hiring someone part-time or on a short-term contract. It’s a lower-risk way to assess your actual needs before making a long-term commitment.
Hiring with Intention
Hiring your first employee is a huge step—and it shouldn’t be rushed. But it also shouldn’t be avoided out of fear. If your productivity is stretched, your growth is stalled, and your finances can support it, bringing someone on board could be the very thing that unlocks your next level of success.
Just remember: the right time to hire isn’t when you feel overwhelmed—it’s when you’ve planned for growth and know what you need help with.
Start by listing the tasks that consume your time but don’t require your specific expertise, and estimate how much time you spend on these tasks each week. Whether you outsource those or hire in-house, every hour you reclaim is an hour you can invest back into growing your business.
Ready to hire? The Hiring Process is your go-to guide for stepping you through your first hire.
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