How to easily make your first hire

The hardest transition for any small business owner is moving from being a sole trader, to making your first hire.

When I started my business, I was a team of one who was responsible for every aspect of the business from technical client work to writing posts for my FB page and everything in between.

My first hire of technical assistance wasn’t a success. I hired from an agency who wanted me to use their systems, yet I already had my own systems set up that were working for me. We didn’t progress past the initial trial.

My first admin hire was a success. This was someone who had previously worked for me in my bricks and mortar business and was now running her partner’s business books and doing some bookkeeping contracting. This was a good scenario for me as she already understood my business needs so there was less training time. 

Because making that first hire can be nerve wracking (as well as exciting!) I wanted to walk you through what I recommend you do before making your first hire.

1. Document your internal processes and procedures

Start by documenting the internal processes and procedures that your new team member will need to allow them to do an efficient job.

How you document will depend on how you like to work. You could create checklists in Asana or how to guides in Google Docs. Already do a test run of your newly documented processes or procedures to make sure you have captured all the steps.

By taking the time to document you’ll save time as you won’t need to explain how to do something, you’ll save money as you don’t need to pull yourself away from the business to answer questions about the job and you’ll ensure a consistent client experience, regardless of who is doing the work.

2. Work on your mindset

There is no point hiring someone if you continually take back the work you’ve delegated to them. Good delegation is a skill that needs to be practised and you need to let go of the thought that you’re the only one that can do the job “right”.

Allow your new team member the time and space to learn your processes and understand the levels of quality and ethical standards that your business needs. Aim to be the best boss you can be.

3. Work on your finances

Before you make your first hire you need to work out your finances. Ask yourself:

·        How much extra income do you need to make before considering hiring?

·        How much do you need to bring in to cover the costs of your new team member?

·        What is the current state of the employment market?

·        Will you hire an employee or a contractor?

·        Will you hire from within your own country or will you look overseas? 

·        Will this be an ongoing hire or is it for a one off project?

These answers will vary depending on the work that needs doing.

Who you hire can also vary depending on your business goals and values. If one of your goals is to hire people who aren’t in the mainstream employment pool, e.g., stay at home Mums working remotely, this may mean a little extra cost as they juggle their personal situations. Are you able, and prepared, to be flexible? Would you like to hire a student over the holidays to help them fund their studies? Your friend’s children may not be the best fit for your business so choose wisely.

4. The hiring process

Before you begin the hiring process educate yourself on your obligations, e.g. workers compensation, holiday leave and tax.  In Australia this means being familiar with your state or federal employment legislation.

Also, make sure you have your legals in place. Negotiating a contract can be seen as a positive action as it opens up the conversation with your new team member about what is expected of them.

Consider the tasks you want the person to complete; what should they know how to do in advance and what will you teach them? Also consider the kind of personality they’ll need for the job and to fit into your business. Hiring someone who is just like you may not be what your business needs!

5. Communicating with your team

If this is your first hire make sure they’re aware of that so you can work together to iron out any kinks. 

Take their feedback seriously and use it to improve your processes, as long as it positively impacts on your outcomes. Communication is important so keep it open and light while being Firm and standing your ground. You don’t need to action every piece of feedback.

I’ve had team members request changes to streamline a process however the regulations that I work under mean some of those suggestions had to be disregarded. I did explain that to the team members so they then understood the reason the process was there.

Have regular check in points, and give continual feedback, to maintain the quality of the work that is being done. 

While making your first hire can be nerve wracking, your business won’t grow past where it is now without forming a team to support your goals. Putting off your first hire, because you feel unsure about the steps to take, can end up holding your business back.

 

If you want to receive practical tips, easy to understand accounting and tax information and ideas to improve your confidence with money, I invite you to sign up to my fortnightly newsletter.

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