Demand is creeping upwards, your customer base is expanding and you’re thinking about bringing on new employees. The question is, when’s the best time to do so?
Should you anticipate demand and recruit staff now with an eye to the future, or is it better to wait until you’ve seen steady results before expanding your team? If you staff too early, you’ll make less money personally, but if you staff too late, you could get bombarded and burn your people out.
Truth is, there’s no one-size-fits-all answer. We’ll always look at your business - and life - from all angles to determine the best time to start staffing.
Plan for the long game.
You’re building an enterprise, building for the future. Quick, short-lived wins don’t lay the foundations for success. True longevity comes from putting systems in place that turn a ripple into a tidal wave.
If you recruit labor today, it’s not an expense; it’s an investment. Sure, it’ll cause an initial dip in your cash flow, but you’ll reap the rewards down the line. You’ll make less money this year, but you’ll be armed to meet increased demand and more ambitious goals next year.
In short, if you want to build a sustained enterprise, put your labor in today. Get your labor up so you’re strong going forward.
Look at how much cash your business has access to.
Cash is king. It’s an inescapable fact. No matter how much of a long-term investment it is, you can’t bring on staff if you don’t have the cash for their salaries.
Implement effective forecasting to determine how long your cash reserves can sustain you. Chat with your accountant and look for areas where you could be saving on tax or cutting expenses, and consider credit options as a boost to cash flow.
Remember; recruiting isn’t straightforward, so forecast for all eventualities. If you bring on five salespeople, prepare for two of them not working out. If you start the hiring process today, be aware it’ll take 4-5 months to bring new staff into your business.
Keep a handle on how fast you’re growing.
If you don’t have the money to bring in staff right now, pump the brakes on any rapid growth until you’ve got enough cash to fund the next stage.
We’ve seen businesses delay adding staff while their company continued to grow. The problem? The existing team - including the owner - couldn’t keep up, were constantly playing catch-up, and quickly burned out.
If you do have the cash, more often than not it makes sense to add employees ahead of the demand. When it does come, you’ll be all set to hit the ground running.
Look at where you’re at.
We’re not <u>just</u> talking about your business here. Yes, we’ll look at your company’s growth and whether you’re a new vs. mature business, but we also ask where <u>you’re</u> at in life.
Let’s take one of our clients as an example. He’s just had his first kid, but he’s been burning himself out and is already gearing up for a busy 2024.
Right now, he’s headed towards exhaustion. Bringing on extra team members will spread the load he’s been carrying alone, giving him time to spend with his family.
Prepare for tomorrow, today.
The right time to bring on staff depends on your priorities in business and in life in general. Whatever those priorities look like, you deserve a rock-solid CPA in your corner to keep you on track.
Fill out our form and let’s look at how we can help with the strategic decisions to build your enterprise.