Too often, entrepreneurs want to be involved in every aspect of their company and end up getting in the way of their own success. The problem is that entrepreneurs by their very nature believe they can do it better themselves. Ironically, this same quality which contributed to their success can lead to their downfall as the company grows and the micro-managing becomes less and less feasible.
To avoid this scenario, business owners must become comfortable with giving other people responsibility. If you want to grow your business, you may need to hire. Here are 3 telltale signs to know now is the time.
1. When demand exceeds supply
Hiring is advisable if, and only if, it will increase your company’s bottom line. If there’s a demand for your company’s products or services that you can’t fulfill due a lack of human resources, it’s time to grow your team.
Conversely, hiring to ease the workload without a corresponding increase in demand will reduce your company’s profitability and set a poor foundation for future business growth. For example, a restaurant owner may be inclined to hire more wait staff if she sees that her servers are overrun. Without an increase in customers, hiring additional staff would cut into profits – not an option. She should only hire if that would allow them to serves more customers more quickly, thus increasing the bottom line. Otherwise, the restaurant owner should raise prices, but not hire.
2. When you’re turning down work
No one likes to turn down work – especially entrepreneurs. If your company is profitable but you don’t have time to take on more clients, then it’s definitely time to hire. Hiring someone to help with smaller tasks will leave you more time to work on important tasks that grow your bottom line. Over time, your new hire(s) will take more and more off your plate to the point that you’re only doing the part of the job you love.
3. If people are complaining about your work
To take an optimistic view on complaints, they provide entrepreneurs a good opportunity to reflect on their business and find ways to improve. Barring the possibility of incompetence, complaints could be a sign you’re spreading yourself too thin. If you don’t have time to deliever the quality of work or level of service your clients expect, they’ll most likely let you know. Hiring someone to share the work with will not only be good for you, but it will help to keep your clients happy.
Hiring an employee – especially if it’s your first – can be quite intimidating. If you find yourself in this situation, start by bringing in someone part-time or on contract to build that initial trust. Most importantly, don’t be afraid to grow! For tips on hiring your first employee, read my advice here.