By Brian Leaf
So your home business is booming and you’re overwhelmed. Maybe it’s
time to hire.
For many entrepreneurs, who wanted to run a small business from a back
bedroom, becoming an employer was never in the picture.
But when phone calls and orders bog you down, you can’t focus on
core activities like sales, marketing, customer service and new
products. You need help.
The scary part is that hiring someone changes your business. You now
have a payroll. You may have to consider a benefits package. Your new
hire may expose your company to employee lawsuits. Your employee will
need training. You’ll be a boss. If you’ve run your business as a sole
proprietorship, your may have to incorporate. There are legal
requirements that you must fulfill.
Yes, hiring someone is a big step and can create headaches.
Entrepreneur magazine says there are five questions to ask before you
hire.
- What jobs will you delegate?
- How many hours a week will your employee work?
- How much more in sales will you need to cover the payroll?
- Can you afford benefits?
- How much time will managing your employee take?
You may consider hiring a contractor or freelancer. You’ll only pay for
the services you need and they’re responsible for any taxes. Or you may
want to contract with a temp agency for help.
If you decide to hire an employee, write a job description. Interview
at least three candidates. Call references. Don’t ask questions about
age, race, gender, family or health. Write an offer letter detailing
duties and pay. Consider getting an employee handbook.
Hiring someone is a big jump for a small business. But for many small
business owners it is a necessary step to realizing their dreams.
For more, see:
- Wisconsin
New Hire Reporting FAQ - The Company Employee Handbook
- Attorney Bethany K. Laurence: Hiring
Your First Employee: Ten Things You Must Do
