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When Should You Hire Your First Employee?

Hiring your first employee is a big step. Some business owners wait a long time before hiring their first employee. Others hire their first employees while launching their business. Whatever the case, you need to be certain that you are prepared. Below are a few questions to ask yourself to determine whether you are ready to hire your first employee.

Are you able to keep up with the demand?

If you’re struggling to keep up with the workload or having to turn customers away, it could be a sign that you need an extra helping hand. Now could be the perfect time to hire your first employee.

If you’re able to comfortably keep up with the workload, consider whether you really need to hire an employee. Hiring an employee may still give you the option to grow your business, but if you have no plans on growing your business any further, there may be no need to hire staff.

Can you afford to hire an employee?

Hiring employees is a big investment. You need to be able to budget for all the associated costs. This includes:





*Recruitment costs


How much you spend on your employees is up to you. Consider what competitive companies are paying their staff and try to pay on the same level or aim to pay better. 

It could be worth talking to a financial advisor in order to assess whether you are likely to earn enough to hire employees and still make a decent profit. Hiring employees may allow you to increase your revenue by having the power to take on more customers – which is something to factor in.

Could you outsource instead of hiring?

Hiring employees isn’t the only option when you need an extra helping hand. There could also be the option of outsourcing help. This involves paying a company or a freelance agent to do a task for you. 

Outsourcing could work out a lot cheaper than hiring in-house employees. For instance, when hiring a marketing company versus an in-house marketing consultant, you don’t have to worry about employee benefits or supplying equipment. You may even be able to find specialist companies within your niche – there are companies out there such as Cardinal Dental Marketing Agency that cater to specific industries. Do your research to find a reputable company. 

Do you know which mandatory legal measures need to be taken?

Before hiring employees, you may need to meet certain legal criteria. This could include taking out worker’s compensation insurance and taking various health and safety measures such as becoming a qualified first aider. You’ll also need to apply for an EIN (employee identification number).

There are professional consultants that can offer advice on employer law – helping you to meet whichever obligations are necessary. These obligations can vary from industry to industry, so you may want to look into specialist advice in some cases. 

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