Analyze Before Taking the Plunge
If you are reading this, you have probably just gotten through a couple of tough years and are starting to feel better about having chosen this line of work.
Your personal workload is high. You are operating leaner. Productivity numbers are good. And, after a long dry spell, profitability is starting to look reasonable.
You may be so busy that you're ready to consider adding personnel to absorb some of the load. The last thing you want is for someone to tell you to take time, step back and analyze what you are doing.
But, that is exactly what you should do.
When things get busy, the tendency is to assume that there are enough profits available to hire additional staff. Another usual assumption is that additional people will be just as busy and productive as current employees.
If you want to hire additional salespeople, will they bring in additional business? Or, will you be spreading around current business. How long will you need to support them out of current profits? How much of a personal investment will you need to make in terms of training time? How will this affect your own productivity?
If you want to hire administrative people, how will this affect profitability? Will they free up time for additional sales to be made? Do you need a full-time person or should you start with a part-timer?
If all of the indicators look good, by all means increase your workforce and generate more business. But, first anticipate the impact that additional people will make on your business and on you personally.