I met with a married couple who own a business together today and had a very interesting conversation about hiring in a small business. As is often the case in my meetings, I had a horror story of my own making to share, and we had a good laugh. Then, we got down to business discussing why they wanted to hire someone.
Why Hiring Slowly Matters in a Small Business
I place a huge importance on hiring slowly in a small business. I mean, look at the facts:
- Making a bad hire means lost money and lost time, two assets that a small business can’t live without.
- Making a bad hire also makes one jaded, and a jaded small business owner is no fun to be around. Getting jaded about hiring can lead to other bad decisions, and a vicious cycle of bad decisions can lead to catastrophic mistakes. I speak from experience.
Signs You Might Be Ready to Hire
These clients have already done a lot of thinking and planning about the hire. As with most small business owners exploring hiring, they had hit a wall with what they could do. They are managing the business, managing the team, working in the finances, they had just bought a piece of commercial property and had moved in there…they’ve had a lot going on! Growth is on their minds, but how can you grow when you can’t keep up with what’s already in the door? These are all valid points when considering a new hire.
Defining Success Before You Post the Job
But, in all the sound and fury of the day-to-day, I recommended that they take time to make sure they had a clear picture of what success looks like.
In other words, what, specifically, is this new hire going to do and how does that help them reach their goals as owners?
It sounds elementary, but how many new hires have been made without that clear picture? I mean, in my office alone, I’ve done it at least a half-dozen times. I’ve seen other clients do it. I don’t want these awesome people to make that same mistake.
How the Right Hire Can Move You Toward Growth
So, we discussed all the ways in which this hire could move them towards their goals.
- By freeing up some of their time to plan strategically and with purpose.
- By inserting themselves between the owners and the team, so that the owners can trust that team member issues are being handled efficiently.
- By not only adding leverage to increase revenue, but also by actively seeking new revenue for the company (and being rewarded for that).
See, that wasn’t so hard, right?
I’m kidding. It’s very hard. Hiring is not an easy thing to do in a great economy, not to mention this weird post-(dare I say it)-pandemic world in which we live where labor is not as easy to find as it was in 2019.
The Financial Impact of Hiring in a Small Business
I did recommend this to my client today, and it applies to you as well:
- Build a projection and analyze the impact of the new hire. Take note of the additional overhead, its impact on your bottom line, and how long it will take for you to benefit from (i.e. make more profit) the new hire.
If you can’t do it, hire someone like us to help you. This is so important. Given the cost of having a new employee, you owe it to yourself to explore it in detail. You’d never spend $50k on anything else without doing a lot of homework, right?
Ready to Get Unstuck?
If you are feeling stuck in your business, and wondering how to get “unstuck,” take a look at our Scorecard. Today may be the day that you uncover that idea to move things along!