When to expand your small business and hire staff

Bringing employees into your business will raise costs. But managed correctly, it can also bring about business growth.

Anyone who runs a small business has experienced that moment when you wonder “should I hire an employee?”

It can be a tough call. On one hand, you want to minimise costs - and let's face it, labour costs can be high. It's not just a matter of regular wages, there is also superannuation contributions, annual leave and sick leave to consider.

You may also need to invest in additional equipment – a phone, desk, computer and so on for your employee to fulfil their role.

As a small business operator these costs can seem daunting. After all, any reduction in your bottom line is money out of your pocket.

But here's the rub. Put off hiring staff for too long and you could hamper business growth. Let's look at four issues to weigh up.

1. What do you want from the business?

While growth is seen as a primary goal for all businesses, the fact is, some entrepreneurs are quite happy to keep their business small and intimate. It lets you retain a hands-on role and remain in close contact with customers. Does this sound like you?

2. Do you really need to employ someone?

There are plenty of tasks that can be outsourced – bookkeeping, media relations, or social media management, without the need to directly employ staff. Outsourcing these roles can free you up to focus on key areas of the business without the need to increase headcount.

3. Do you want to see just how far you can take this business?

If business growth is an important goal, it's hard to argue against building a team of quality talent.

Mortgage Choice franchisees often employ additional staff before the business starts to grow – only to find that having a bigger team is the thing that facilitates expansion.

The reality is, as a one-man band you can only achieve so much. Expanding your team doesn't just boost your overall capacity, it can give the impression of success to your customers, and that can be very compelling.

4. Do you have a succession plan?

Ideally, running a small business should mean building a saleable asset for the future. But you need to find someone to buy the business. In many cases, employees are the logical people to succeed you as the business leader. Without employees it can be challenging to sell a business that relies solely on your skills and contacts.

A Mortgage Choice franchise lets you establish and grow a business according to your preferences and goals. When you're ready to employ new staff you'll find our industry-leading brand name is a tremendous asset for recruiting top talent who can drive your business further.

Discover more about the benefits of investing in investing in a Mortgage Choice franchise – call us today on 1300 650 330.