Can Your Small Business Afford Full Time Employees?

For a small business owner, hiring a new employee can be a major decision. Putting a new employee on full-time can make or break your company. Take this quick quiz to see if it is time to add a new employee:

1. How many hours do you work per week?

A. Nearly all of them; more than sixty.

B. More than I’d like; about fifty.

C. Only around forty, but it seems like much more.

D. Not much, less than thirty.

2. How often do clients mention they get enough time to talk with you?

A. Basically never; my clients see me only once or twice.

B. Not often; it is difficult to get the time to follow up on queries.

C. They care less about the time than the job/product itself.

D. Almost always; have had few or no complaints.

3. What is stopping you from expanding your business?

A. Day-to-day operations, including logistics or bookwork.

B. A very skilled sales or marketing or number-analysis person.

C. Lack of customer interest or market share.

D. I don’t want to expand my business, I like it the way it is.

4. How much of your day involves some type of manual labor?

A. A good amount, I have to do everything from loading trucks to sweeping up at night.

B. Not much, but it is a bother to take time away from other aspects of the job.

C. Not enough to distract me from my company’s problems.

D. Very little, or I see no problems doing manual labor.

5. What do other employees (if any) say about their workload?

A. They say it’s too much and they want regular time off.

B. They’d prefer a bit of relief, but are worried about losing hours.

C. They struggle to perform their tasks, but not because of the workload itself.

D. They do not mind/I have no other employees.

6. What would be the best shot in the arm for your business?

A. The opportunity to increase output and open up a new market.

B. Greater volume of sales of existing products/services.

C. A new product/service that outperforms the current breadwinner.

D. Higher profit on existing sales.

If you chose mostly A: Your company needed a full-time worker yesterday! You need another player on the team, so consider promoting the job opening on career websites like Simply Hired or Linked In that will send the word to thousands of potential hires.

If you chose mostly B: A full time employee might help, but a part-time employee might be more beneficial. Consider hiring from a temp organization to get a person who can work in the short term, then decide about the long term.

If you chose mostly C: Your company needs help more than it needs another employee. If you are worried about available buying power, organize your finances and get a grip on revenues and expenditures.

If you chose mostly D: Your small business enjoys smooth sailing, and has little need of another employee. Unless you want to expand in the near future, keep the headcount down and enjoy the lion share of the profits.

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