When Would I Need To Start Hiring?

Many entrepreneurs/founders start off with minimum staff strength, doing as much of the work as they can by themselves. This usually helps to keep fixed costs as low as possible.

If they need extra hands, it’s usually on a short-term or project basis, so that the freelance/contract costs are contained, predictable and recoverable.

There are various options available to you, depending on your present and future needs. You can outsource staff on a project basis, hire project or contract workers, or hire part-time or full-time permanent staff.

Hiring & Recruiting – What Do I Need To Know?

Hiring permanent staff is a serious commitment and usually signifies taking the next leap in your business. Revenues should ideally be at a more stable level, cash flow should preferably be positive as your costs will increase exponentially.

You will need to cover fixed costs like office rent, salaries, equipment etc. on a monthly basis, regardless of whether there is any revenue coming in. So be sure to work out your financial plan incorporating staff costs at least 12 months in advance and use it to set monthly revenue targets.