Business owners who are enjoying steady growth over time with their sales volume moving ever upward will eventually need to determine whether it makes sense to subcontract out the extra work or consider bringing in a new hire on a part-time or full-time basis.
This decision depends greatly on the type of business you own, in that certain jobs involve tasks that can be accomplished from home or in the field, while others require the need to train and work within an office or factory environment.
For instance, as a business valuation and equipment appraisal firm owner, much of the time-consuming work for my employees revolves around field inspections and market research, while maintaining strong customer relationships and meeting delivery timetables. These job responsibilities lend themselves to working offsite in the field or from home.
Here are some other factors to consider:
- What are the maximum capabilities of your current staff? Can you structure an improved compensation plan for existing employees to benefit from this growth while not overtaxing them or potentially creating a lesser quality product or service given the extra work demands?
- This option should probably be considered and vetted before any others, as your personnel will appreciate the opportunity for growth. It will also help maintain positive morale if you ultimately determine the need for extra hires or subcontracting.
- Are you confident that your growth is a consistent pattern that will continue to develop or, could it be a short-term aberration due to unique circumstances in your market? It’s always a good idea to look back over the last 3-5 years of revenue and determine what created this growth and if there are inconsistencies or steady patterns to your sales.
- If you determine there is a strong chance the increase in revenue will continue in the foreseeable future, hiring full or part-time in-house will need serious consideration.
- How much training is required for subcontractors or new employees, and can you afford to bring in a seasoned professional who will immediately take the ball and run? Depending on your overall role in the business, you may have the time to train lesser groomed staff or freelance help however, if this is not the case, you may need to consider spending the extra capital to engage someone with extensive experience.
There is always risk involved when bringing in additional human resources. Taking a leap of faith with new hires or subcontractors can help ease the pressure and help you better manage growth leading to prosperous future outcomes, where the sky becomes the limit.