One of the hardest decisions many business owners face is when to hire. When to go to that next level and when to bring more help in. It’s usually a very uncomfortable decision because, of course, hiring has costs and the benefits are not immediate. It takes a while before the new employee gets up to speed before they help the team grow and produce revenue. Many business owners struggle about when to hire.
The key is this: when your team is overworked, and they’re doing too much, and there are things that you know add economic value that isn’t being done then it’s time to hire.
If your team’s not doing things of economic value, then you can restructure your team’s goals, remove some unnecessary items, and get more focused. But if your team’s doing the things they need to do and you know that they’re missing opportunities to produce revenue for you, then it’s time to hire. Bringing somebody in to fill those gaps will let them create that revenue.
Here’s a step-by-step approach:
First, assess what’s currently going on. What is your team doing? What are they not doing? What’s being missed? What is that costing you in terms of revenue? You want to try to put numbers on things. Who’s not being telephoned? What customers are not being followed up with? What is not being implemented because you don’t have enough team members? What’s happening on the customer satisfaction standpoint? What opportunities are being lost?
Second, look at this with a critical eye. Some of this stuff is hard to quantify. But if you stop and do an analysis, I bet you can put numbers on this. What does it cost to lose a customer? What does it cost not to reach out for that next opportunity? What does it cost to not fully utilize your infrastructure?
Finally, once you start understanding these numbers, you can then easily make a quantified decision on whether to hire or not hire somebody. Don’t hire just because you’re busy, but hire because big things aren’t getting done or important things are being missed.
What’s been your experience with the hiring and firing decision? Have you struggled with this? How have you made the decision of who to include and who not to include in your company? Join us in the comments below and let us know your thoughts.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Tom Albrighton.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.yourbusinessspeaker.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at email@example.com or (214) 418-0258.
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