Every small business has those milestone moments that help to mark progress. There is the first order, the first month with $10,000 in sales, and there is the hiring of the first employee. How does a small business owner know when it is time to bring on that first staff member? There are some indicators a business owner can use to determine when it is time to bring on personnel.

Cash Flow

No matter how much revenue you bring in, you still need to solve your cash flow problems before you can bring in personnel. Employees cost a lot of money and you could be looking at significant losses if you do not have the cash to cover your payroll costs.

One way to solidify your cash flow is to talk to Advance Funds Network. This is a company of financial experts who will turn your invoices into immediate cash flow. You will have all of the financial resources you need to meet your payroll costs.

Make Sure It Is Part Of The Business Plan

Your business plan is your road map to success and the last thing you want to do is to start getting off the path you have been following. A good business plan will outline future personnel needs and give you the indicators to look for to decide when it is time to start hiring. Always follow your business plan when it comes to making important decisions like this one.

Write A Job Description

Not only is it important to determine when it is time to hire an employee, but it is also important to know why you are hiring an employee. As a busy entrepreneur, you may be able to look around and see one hundred reasons why you need an employee, but it is only useful when you can put it into words.

A job description makes it easier to recruit new employees and it also makes it easier to gauge your employee's performance. If you hire an employee and set about giving her random tasks, she will never know what she is supposed to do next and she will never develop into a better employee.

Understand All Of The Costs And Responsibilities Of Hiring An Employee

When you hire an employee, there are federal and state labor laws you have to follow that can get expensive. Federally mandated health insurance could cost you more than you would have expected. Before you hire someone, sit down with your accountant and find out what the real costs will be.

If you feel that hiring an employee is cost-prohibitive at this point in your company's history, then consider using independent contractors for the work you need done. You can get an independent contractor to do everything from manage your website to taking care of administrative duties.

Hiring your first employee is a big step in the evolution of your organization. When you have a good business plan in place, then there are solid signs to look for that will tell that it is time to hire. Make sure that you understand what you are getting into when you hire an employee and take the time to develop a job description that will make it easier for your employee to start doing her job. The more planning you do up front, the easier the whole situation will be for you and your new employees.