To Hire or Not to Hire

One of the biggest decisions you'll make as a small business owner is whether to hire employees. A good employee can be a real asset to a business, but even the best employee requires time and attention. There are also lots of additional expenses that come with hiring an employee, like workers' compensation insurance, payroll taxes, and, if you're generous, perhaps health insurance.

When you get to the point that you're so busy things start falling through the cracks -- missed appointments or deadlines, forgetting to return phone calls -- it's probably time to start thinking about hiring some help. The biggest thing you want to avoid is getting so busy that the excellent reputation you worked so hard to cultivate begins to suffer.

Before you hire an employee, consider other options. Are there things you're doing you don't need to do that would free up some time? For example, the first year I was in business, I spent lots of time delivering materials to customers. Eventually, I hired a delivery service to do that chore for me. You might also consider hiring an outside contractor, like a bookkeeper to maintain your financial records. There's also the possibility of partnering. Often customers asked me to help them develop company brochures, and for that job, I needed someone with design skills. Rather than hiring a designer and investing in all the necessary hardware and software, I partnered with a freelance graphic artist for design work. I was then able to focus on writing copy for the brochure and sourcing the printer. The customer had no idea the designer wasn't part of my company.

If you decide to move forward and hire an employee, this article has a number of ideas for finding the right candidate. One suggestion not mentioned in the article is hiring someone on a temporary basis to begin with. Work out some sort of agreement whereby the candidate is hired for three to six months, with their performance to be evaluated at the end of the trial period. If it doesn't work out, you haven't had to make a long-term commitment.

I also found a site that listed the federal and state forms you'll need to complete.

Inexpensive Ideas for Promoting Your Business

When you first set up shop, it's critical to invest time and money on marketing for your product or service. Of course, when you first set up shop, money is usually pretty tight. So goes the age-old marketing conundrum.

Even though it's difficult to measure the return on money spent on things like advertising, no one would argue that it's important to get some name recognition for your business. The question becomes how much you really need to spend to gain that name recognition. My experience says it doesn't have to be a lot, if you're willing to some of the leg work.

Here are a couple of ideas:

• Set up a Web site -- It's worth it, in my opinion, to spend a little money on a good Web designer to make the site look professional. I asked around and found a local freelancer who was just starting out on his own, and we bartered for services. He designed my site. I wrote copy for his site. Once your site is live, put your Web address on everything -- your business cards, letterhead, signage, packaging, your emails.
  
  
• Send a press release to the local newspaper, radio and TV stations -- You'd be surprised at how open local news outlets are to stories on local businesses, particularly if your business is unique.
  
  
• Think about offering a seminar that showcases your expertise -- Civic groups are always looking for guest speakers.
  
  
• Tell everyone you know about your business -- I used to go through my Rolodex every couple of months and call friends and acquaintances just to say "hi," and invariably the topic of my business would come up. Make an effort to get involved in local business organizations. Volunteer with different community groups. Oh, and have business cards with you at all times. You never know where your next sale may come from.

A Google search turned up all kinds of sites that offered free or inexpensive marketing ideas. One of the best sites I found was bizymom.com.

Consider Hiring a Personal Coach

Last June Fast Company published an interesting article by Jim Bolt about the surge in popularity for executive coaches. He noted that in 2004, 56% of the companies surveyed said that executive coaching would be a major learning method they would emphasize. In a 2006 follow-up survey, 51% said the use of coaching had actually increased.

You can hire a life coach to help you with just about anything under the sun -- improving your relationships, losing weight, or reaching your full potential as a person. Most often businesses enlist coaches to help their managers and executives develop their leadership skills.

Small business owners could make particularly effective use of a coach. As a small business owner you have to wear so many hats that it's often impossible to look beyond day-to-day operations and think about where you want to drive the business long-term. I also think small business owners are often good at one aspect of their business, marketing or sales for example, but lack other skills. A coach can help you think about your business from a different perspective, keep you on track to reach your business goals, or help you improve skills that are not your forte.

A web search turned up lots of sites that offer professional coaching services. Check out the International Coaching Federation for information about coaching as a tool and what you should look for in a coach. They also offer a coach referral service. Coaching.com, which is a Ken Blanchard organization, also looked interesting. Coach Source was referenced in the Fast Company article. It claims to be the world's most experienced leadership coaching company. If you're not sure hiring a coach is for you, talk to other business owners. Chances are one of them has worked with a professional coach and can help you weed through the pros and cons.

If you decide to hire a coach, Bolt's article makes a number of suggestions for getting the most out of the relationship. If you've worked with a coach, leave a comment and let me know how it worked for you.

The Health Insurance Nightmare

If you decide to go into business for yourself, one of the biggest expenses you'll face is health insurance. The cost is such that many a would-be entrepreneur have decided self-employment is too risky a proposition. Others who are already small business owners are forced to accept that health insurance is not a benefit they can afford to offer their employees. The U.S. Chamber of Commerce found that of the more than 45 million uninsured Americans, approximately 60% are employed by small businesses.

When I first started my freelance business, I was paying about $150/month for health insurance. By the time I got married and went on my husband's health insurance policy, I was paying more than $400/month. It seemed I was constantly shopping for less expensive health insurance options. And, trust me, it's not a fun chore. It's almost impossible to do side-by-side comparisons. At first, I opted for plans with higher and higher deductibles. Eventually, I joined the National Association for the Self Employed (NASE), which uses the buying power of its members to offer decent coverage at an affordable rate. Even then, I opted for catastrophic coverage only.

About.com has a couple of suggestions for ways to reduce health care costs. Ideas range from keeping your employees healthy to offering a health savings account. I also suggest you check out NASE. If you're in a business with an established trade organization, check out the benefits they may offer. Another good option may be your local chamber of commerce, or talk to other entrepreneurs and ask what they're doing to keep their healthcare costs down.

As a closing thought, I found a Web site called healthinsuranceinfo.net that offers a consumer guide for every state about getting and keeping health insurance. The guides were written by the Georgetown University Health Police Institute. They are downloadable and offer valuable information about your rights and protections.

Good luck!