Posted on: Wednesday, July 30, 2003

Know when to hire your first worker

By Rhonda Abrams
Gannett News Service

During many of my years in business, I worked alone, out of my home. It was satisfying and profitable. But one of the best decisions I made was to finally hire an employee.

Hiring your first employee is financially, logistically and psychologically challenging. But a question I often ask people who've been self-employed for a number of years is, "Are you creating a business or are you creating an income?"

Now, there's nothing wrong with building a "business" that just provides personal income; the overwhelming majority of entrepreneurs do just that. But at some point, you may decide you want to build a company that multiplies the value of your knowledge and skills, creating something of ongoing value. That means getting help.

How do you know it's time to hire your first employee?

Most business owners wait until they just can't handle all the work they have. This means you're going to be frazzled long before you get assistance. Even worse, during the time you're overworked, you're probably going to turn away — or turn off — customers. And you've almost certainly stopped prospecting for new clients.

Instead, ask yourself: "How much time can I free up if I get some assistance? How much more money can I make?"

Getting help doesn't mean immediately going out and getting a full-time employee. You can start with a part-time worker or even out-source some tasks. One of the biggest time-gobblers, for instance, is handling financial matters — generating invoices, paying bills, entering data. Can you find a reliable, trustworthy outside bookkeeper to do most of this for you? And just think how much easier it will be when it's time to prepare your taxes.

My first "employee" was a part-time administrative assistant. Wow. Suddenly, instead of waiting in line at the post office or packing up boxes to send clients, I could actually be doing my work — generating more income.

But it also meant I had someone working out of my home, someone I had to tell where I was when I was out of the office. That was a difficult adjustment. But, to be honest, it kept me more focused. And that meant I made more money, even though I was paying someone else as well.

I was fortunate that my first assistant, Ann, was a joy to have around.

One lesson I learned from Ann was the importance of hiring someone you really click with, especially for your first employee. That doesn't mean looking for a friend, but finding someone with whom you can communicate easily. You want to feel comfortable having him or her in your home, small office or store.

Before you look for your first employee, write down all the things you might want that person to do. This list is likely to be way too long, unrealistic, or cluttered with the wrong job duties.

The two biggest mistakes:

• Handing over too much authority.

• Not giving any authority.

Recognize that you have to relinquish some control if you want your employee to be effective and satisfied. And, no one is going to be a miracle worker, solving all your business problems.

Prioritize what you'd like to have done. Be realistic. You're not going to find someone who loves data entry who also excels at sales calls. Those are two different personality types.

When choosing employees, here's an important rule: Hire for attitude; train for skills.

Hiring an employee is an investment in your business. Like all investments, it means giving up something now for greater rewards later.

Yes, you'll have to take some money out of your own income. Yes, you'll have to set aside some time for training. Yes, you'll have to give up some privacy.

But in the long run, finding help may allow you to build a bigger, more profitable business.