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Last Updated on November 7, 2017 by Work In My Pajamas
Many entrepreneurs who launch a startup may have a one-man operation for several months, a few years or even longer in some cases. If your business is successful, however, there likely will come a time when you must actively expand your business and hire at least a few employees to help you out. Before you take this monumental leap, focus your attention on these considerations so that you can be better prepared for what the future holds.
In This Post:
Paying for Increased Overhead Expenses
Expanding your business inevitably will result in increased overhead. This includes expenses for payroll and related taxes, health insurance, worker’s comp insurance, larger office space, more supplies and equipment and much more. You must carefully review your budget and create a realistic projection of all relevant expenses. This will help you to determine if you can afford to expand right now. Remember that you may need to enhance marketing or take other efforts to ensure ample funds are available to pay for these expenses.
Managing a Team of Employees
Another important consideration relates to the management of your team. All employees will need to be properly managed in order to enjoy the maximum results from their efforts. Examine your experience and skills in this area to determine if you have what it takes to succeed. Some business owners may discover that they also need to hire a professional with managerial experience.
Investing in a Fleet of Work Vehicles
Many sole proprietorships have at least one work vehicle. When you hire new employees, you likely will need to add to your fleet. Of course, not all company types will make it necessary for you to have a fleet. If your industry is one of those that does, however, then this is something for you to take into serious consideration. More than that, you will need to pay for increased auto insurance expenses, vehicle loan payments and vehicle maintenance or repairs. Your budget should include all related expenses so that you are fully prepared to own a larger fleet.
Relinquishing Some Control Over Operations
When you hire new employees, you will certainly retain control over the direction that your company takes, and you will make all major and relevant decisions. However, your new hires will handle various tasks that you previously completed on your own. In this way, some aspects of daily operations will no longer be fully controlled by you. You should determine if you are ready to take this step.
Business growth and expansion can be exciting to see, but it also can result in growing pains. Examining every potential ramification of growth and being fully prepared for what may occur going forward, you can handle this stage of business growth gracefully.
