There are two reasons to hire people: time and expertise.
Time: With a new business or a small business, there is never enough time to accomplish everything which you want yourself. Hiring people gives an owner the ability to do more or focus on more strategic tasks. However, hiring people costs money which will make the venture less profitable or deplete the firm’s capital.
Expertise: Business owners put on many hats, such as sales person, bookkeeper, and website manager. However, no one is good at everything. Hiring people allows the business to do certain things better. However, dealing with “specialists” often doesn’t decrease the level of work for the owner but increases it.
Assuming that it makes sense to hire people, there are numerous questions that need to be answered:
- Should you hire employees or outside contractors / freelancers?
- Where should you look for help and how much should you pay them?
- How is managing employees within the context of a small company differ from a larger company?
Here is a list of resources to help you with this process. If you come across other resources that should be included or have any other comments/questions let us know in the comments section below.
About: Pros and cons of Hiring Independent Contractors vs. Full Time Employees – One of the first decisions you will have to make is whether to hire full time employees, independent contractors, or some combination of both.
Franzisk: The Ultimate Guide to Hiring a Freelancer – An overview of many of the factors you will need to consider when hiring freelancers, including how to write the job description and get the highest quality candidates and which sites to use.
Texas A&M: Hiring Supervisors Workbook – 6 step process for hiring the right employees.
Inc: HR Guide: How to Hire Your First Employee – Tons of articles from inc covering everything from interviewing to employment applications.
Entrepreneur: How to Set Salaries – A good introduction to how to set salaries for your employees.
SBA: Hire Your First Employee – The legal and tax ramifications of hiring employees.
LinkedIn: The Secret to Putting Together Insanely Successful Teams – Diversity is key.
About: Orientation and Training New Employees – Great overview of the entire process.
Inc: How to Build a Competitive Employee Benefits Program – An overview of everything from setting up health insurance to 401K’s
WSJ: The Best Way to Fire Someone – How to fire someone in 7 steps.