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.