Hiring Your First Employee
As a sole proprietor, you handle all business matters--from producing and marketing your goods or services to fixing paper jams in the copier. Your business has grown and now you're stretched too thin. Business is being lost because you just can't do it all yourself. It's time to consider hiring your first employee.
Taking the plunge
Having a new employee--an extra pair of hands--should increase your revenue enough to pay the employee's salary and benefits, plus add to your profits. If you're not quite ready for a full-time employee, think about hiring part-time help, temporary help, independent contractors, or getting help from family and friends.
Besides salary and benefits, don't forget that the cost of hiring includes the time it takes you to train a new person. During this training, you'll have less time to devote to other aspects of the business. Filing government reports and keeping proper records will consume some of your time as well.
Hiring an employee requires that you complete paperwork and do certain tasks that weren't necessary when you were operating alone.