Determining when to hire a new employee is a challenge. Perhaps you’re thinking about hiring your first employee. It’s a big step! Or maybe your team of five needs an additional member. Either way, here are a few factors to consider as you think about adding an employee to your team.

Do You Have a Clear Understanding of the Job Description?

It might be tempting to panic under stress and just hire someone. But telling a potential hiree that they’ll do “whatever is needed around the shop” is not a smart move. Craft a clear job description based on real workflow needs. After a few months, if you see their role differing from the initial description, talk with them about modifying it.

Are You Turning Away Business?

If you find yourself turning away business from potential customers because you lack the bandwidth, you need to hire another employee. Sometimes a good team can go above and beyond to meet the demands of a customer, but eventually your overworked team will burn out. Get ahead of it and hire another team member before it’s too late.

Can You Afford a New Employee?

No matter how badly you may need the help, you should not hire if you cannot identify clear funds available to pay the new employee. Wait until you’re financially prepared. Or move funds around in your budget to make space.

Is Your Customer Service Insufficient?

If your team is unable to deal with customer issues and complaints, you need to hire an employee. In an age where immediate solutions and rapid responses are the new norm, you must stay on top of customer service issues. How do you beat out direct to consumer brands that seek to cut out the local bike shop? By making customer service your key.

Are Your Finances In Order?

As owner, the financial integrity of your small business is critical. If you find yourself unable to complete paperwork or incapable of maintaining the bookkeeping, you need help. This could be hiring an in-house full-time or part-time bookkeeper or seeking assistance from an outside firm. Consider using a staffing agency to find the right person if necessary, as this is a role you cannot disregard.

Do You Feel Trapped at Work and Unable to Vacation?

Have you had a vacation in the last year? Do you find yourself unable to escape for medical appointments, birthday parties, and children’s basketball games? Consider adding a member to your team if your schedule is preventing you from the things that matter most.

Most Importantly, Is It The Right Person?

I’ve made the mistake of hiring the wrong person due to lack of quality candidates. I urge you to avoid this pitfall. It takes much more time to rectify a bad hire than it does to wait for the right candidate. Take the time you need to find the best person for the job. You do not want just average.

As you consider hiring a new employee for your small business, make sure the timing is right, the job description is clear, and the person is an ideal candidate for the job.