There are four crucial elements that all entrepreneurs require for success. Each holds equal importance, and all are required for the business to thrive, no matter how big or small the business in question. Without these four elements in place, entrepreneurs won't know what they need an employee for or what goals they are trying to achieve by hiring new staff. So what are these four things?
Before Hiring Staff, Solidify Your Vision
Can you see what the business will look like at peak performance or find business opportunities where others only see failure? Every true entrepreneur has a vision, and without one, the business has no chance of making it over the long haul. Take a peek at some sample vision statements for ideas if you're struggling with this concept.
Keep Accurate, Easy-to-Use Records Before Hiring New Staff
Do you have a professional set of records for your business? Does your accountant roll his or her eyes when you walk in the door with a shoebox full of receipts? Are you living month to month, trying to make ends meet both with the business and in your personal life? If any of these aspects are an issue, you aren't keeping adequate records. It isn't good enough to merely run the daily numbers through an accounting program; you have to understand cash flow and the day-to-day business cash needs as well as create a record keeping system that captures the requisite information. Without it, you'll never know if you can afford to hire staff, much less what tasks they'll perform or when they'll work.
Review Your Financial Accounting Practices Before Hiring Employees
Most entrepreneurs create a financial plan during the business plan phase of their start-up. But how many actually understand what those numbers mean? Do you? What is your break-even point? Debt ratio? Capacity for the month? If you haven't looked at this information closely and regularly since you opened the doors, it's time to learn what these terms mean. Like a thermometer tells you if you've got a fever, your financial information takes the temperature of your business.
Learn When to Hire New Employees with Excellent Planning
Tied closely to the other three items on this list, business planning incorporates your vision with what's already happened financially and projects the whole shebang into the future. What happens if demand outranks supply, or if one of your major clients goes out of business? How do you keep up with inventory needs when items aren't flying off the shelves, but the money owed to the supplier is due? Planning allows you to look at the internal and external factors affecting your business and forecast future needs and goals based on those assumptions. Without adequate planning, you'll react to surges in demand too late, thus making costly employee hiring mistakes.
With these four pillars in place - vision, financial, planning, and records - you and your business will be better equipped to handle any employee hiring issues before they start. You'll have a strong grasp on why the business needs to hire workers, what tasks they'll perform, when they'll work, and how much you can afford to pay them. These four steps aren't enough to cover all of the issues related to human resources and hiring staff, but they build a business foundation you can't afford to ignore.
Bonny Albo - Bonny offers 20 years of writing experience to her readers. CNN, MSNBC, The LA Times and Macleans all reference her for expert advice.
