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Finding the right pace for growth

- by Michelle DeClerck, CMP

One major challenge of running a small business startup is growing it at the right pace. Many of those who start their own business probably think they will ramp it up slowly and deal with growth-related issues later. I thought the same thing, but I quickly had more work than I could handle. While I would have preferred that the business grow more slowly, I suddenly found myself in a position in which researching how to hire and employ staff members was as much a priority as handling my clients’ requests.

Because employing others can affect many of the reasons you went into business for yourself, it’s important to give it careful consideration before you take that step.

When the time comes to think about adding staff, I recommend being very mindful of how and when you start spreading the word, as your friends will likely be eager to help you find someone — perhaps even before you’re ready to do so. This could result in a hiring decision you may later regret.

Next, ask yourself the following important questions:

• Do I truly understand the ramifications of hiring a friend?

• What will the working arrangement look like? If the business is home-based, how can I discern whether someone is self-motivated and self-directed enough to handle the unique challenges of working from home?

• Will the work be consistent enough to ensure I won’t hire someone only to have to terminate them later due to lack of funding? Remember, your staff will be depending on your business to help them pay for things like their kids’ braces and soccer fees.

• Do the numbers really add up? After workers’ compensation insurance, bookkeeping, paperwork, mentoring, managing and everything that goes into a meaningful employment situation, am I really making enough money to cover both the addition of the staff member and the time it will take me away from the core work I was doing? (These things usually take more time than you would think.)

• What’s the real reason I’m adding staff? If it’s to grow the company based on your strategic objectives, you’re probably on the right track. If it’s because you don’t want to turn down business, first make sure it’s really the type of business you want your company to handle. Next, consider whether the client would be OK with your delegating the work to a staff member rather than handling it yourself. Clients often hire small businesses based on the business owners. A candid conversation with the client may be necessary and may help you with your hiring decision.

Lastly, I highly recommend that you discuss all of these considerations with other successful small business owners. Keep an open mind and learn as much as you can from their experiences.

Deciding when and how much to grow is a challenge. However, if you give it the right type of forethought, you can grow at a pace at which you can continue to find the same level of enjoyment and fulfillment you originally sought when you decided to go into business for yourself.

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