People come to me because they want to grow their business – they want a proper grown up business that will earn them some decent money. One of the main issues that comes up is that people are reluctant to take on their first employee, even if they can see that having someone else to share the workload and contribute to profits would be helpful.
There are lots of reasons why people are reluctant to take this step.
Taking on an employee means that you’ve got to be responsible for someone else – you’ve got to pay their wages at the end of the month, and they can’t wait to get paid if you’re a bit short or a customer is late in paying you. You’ve got to manage and train that person, and if you’ve gone into business in order to do things your way (like most people) the new person may not do things exactly the way that you like them being done.
There is a lot of scaremongering about taking on staff. Business organisations complain about red tape and employee’s rights. In my opinion, this is overstated. Sure there’s a bit of hassle (advertising, interviewing, contracts) and you definitely have to make sure that you stay within the law, but if sometimes it sounds as if employing people is some superhuman feat of endurance, rather than a normal thing that companies do across Britain every day. If employing people were so much trouble, no one would have a job.
Business owners are often apprehensive about what effect taking someone on will have on profits. People say “well, I’m making about 4k a month profit at the moment, so if I take someone on and pay them 2k per month, that doesn’t leave enough money for me to pay my bills.”
This argument completely misses the point. Taking on an employee shouldn’t be about getting someone else to do the boring stuff, or because you’re too busy – if you’ve got too much work on, you’re not charging enough (see my other article on setting the right price.) Employing someone should mean that you make more money, not less!
Taking on staff should be an investment and a way of expanding your businesss. It can be a great way of having other people to share the burden, and keep you sociable. Above all it helps you to take your business seriously – to make sure that you’re growing into a proper grown up business.
If you’re still wondering if this is the right stage for you, and you’re based in Brighton, Sussex or London, get in touch for a chat. I’ll come round and ask you lots of nosy questions about your business, and see what the next steps are, and if that should include taking on staff.
If you want some help with the technicalities of employing people, including making sure that you’re doing everything the right way legally, there are some great resources on the Business Link site.
Julia Chanteray