Hiring your first employee is an exciting (and nerve-wracking!) time.

One of the most thrilling moments for any business owner or entrepreneur is the moment they realize they’re ready to expand. When demand and profit are high enough that you can finally take on another employee and begin growing your business. Hiring your first employee can be a bit overwhelming because you are simultaneously excited and anxious. Hiring is one of the most important business decisions you will make as you grow your business.

Hiring Your First Employee

There are a number of important aspects to keep in mind when deciding if it is the right time for you to bring on your first hire. Some of these include:

  1. The type of employee – independent contractor, full-time employee or intern.
  2. How a new hire will help you reach your business goals.
  3. Whether or not a new hire is a sustainable business choice.

As we dive deeper into these critical elements of hiring your first employee, keep these key factors in mind when deciding if bringing on a new hire is right for you.

What Type of Employee is Right For You?

The first decision any growing company should make when it comes to hiring their first employee should be what type of employee will best fit your needs.

More and more, companies are relying on freelance and contract employees to fit very specific business needs and to reduce the costs of hiring full-time staff. Freelancers and contractors can often work off-site, and their tasks can be managed through business management software, allowing for small companies to hire and manage a small team of specialists.

However, hiring a W2 employee can also have its benefits, as you will be building a relationship with one employee who is more likely to embrace your company’s mission and ethos, as they will be solely focused on your company’s business goals.

Have Clarity About Why You Need an Employee

rikka-brandon-tips-for-hiring-your-first-employeeMany businesses experience exciting growth spurts that can lead to the feeling of: “I need to hire NOW!” However, it is extremely important to understand how hiring your first employee will benefit your growing business. If you can’t easily identify what your new hire will do, it might not be worth allocating part of your revenue to hiring, as you will be spending time and money. It’s equally important to be able to outline clear goals to any potential candidate, so they can evaluate if the position is right for them.

Be Realistic

When it comes to hiring your first employee, it’s important to not let your dreams override reality. It’s easy to get excited about growth, but it is essential that you set yourself up for sustainability, as overspending on an employee can quickly eat up your profit and leave you and a potential employee shipwrecked. Make sure that you are financially on track to be able to sustain an employee for 3-6 months without a major profit return on their services.

Allocating a budget is one of the most essential parts of deciding whether or not your company is ready for a new hire. If you have the ability to sustain an employee for 3-6 months, have a direct need for their services, and know what type of employee your company needs, then it might be time for you to make your first hire!

Want to learn more about how to get clear about your business needs before you hire?


Sign-up for my comprehensive, self-paced Clarity & Reality Course today. This course will teach you how to set realistic expectations, how to writing an amazing job description and how to communicate your expectations efficiently.

P.S. – Do you like helping people? Me Too! That’s why I provide this great content to help you grow your team! Now, help me (and your friends) by sharing this great information on Twitter, Facebook, and Pinterest by using the super-easy share buttons below.

Ahh, thank you – that feels good.