Are you planning to be a solopreneur or is your goal to eventually hire a team of employees? Depending on your business goals and desired income, you may benefit from not having to do everything yourself. It is very difficult to scale your business when you are doing everything on your own. In today’s episode, host May Yeo Silvers shares her tips for determining how to budget your business finances so that you can hire a team.
If you do not want to hire anybody, you do not have to. However, you will have to charge much higher prices in order for your business to be profitable. You also run the risk of burning out, because you are having to wear too many hats all the time. If you don’t want to do it all on your own, but still feel uncomfortable with the idea of managing employees, contractors are a great compromise. By hiring a contractor for each project, you can get some tasks off your back without having to manage a full time employee. If you do want to grow your company and build a team of employees, it is important to make sure your business is bringing in enough revenue for that investment to make sense. This means that your business is generating enough money each month to pay not only your business expenses (including the salary you plan to pay the employee whom you are planning to hire in the next 6 months), but also your personal bills. May recommends that your business be successfully generating this level of revenue for six months prior to hiring an employee. Then, when you do hire someone, make sure that they can bring in at least four to ten times what you are paying them so they are paying for their own salary PLUS generating profit for the company.
As your business grows you may find yourself needing to hire someone to help you. Whether you decide to do it all yourself, hire a contractor, or hire a full time employee or team of employees, you need to get very clear on your business finances first. Understand how much income your business is bringing in and how much you can afford to spend on hiring. This way you can scale your business while maintaining profitability.
Quotes
• “There’s only this much you can do by yourself, so scaling almost becomes impossible.” (3:55-4:01 | May)
• “I don’t want to have a big team, I don’t want to manage people. So what I do is, I hire contractors, because I also understand that I don’t want to do everything myself.” (7:31-7:42 | May)
• “They cannot just bring in enough money to break even, to pay for their own salary. It has to be at least 4 to 10 times of what you’re paying them in order for you to have a profitable business.” (18:03-18:16 | May)
• “If you don’t want to hire anybody, then you have got to make sure that you charge a lot of money.” (25:09-25:13 | May)
• “When you hire a team or contractor to do the work, you may not need to tell the client that somebody else is doing the work.” (25:36-25:42 | May)
• “In order for a company to grow in building a team, you have to elevate the status of your team member to instill the confidence in your clients that they are as capable as you.” (26:40-26:55 | May)
Links
Connect with me at: [email protected]
Website: events4anyone.com
LinkedIn: www.linkedin.com/in/mayyeosilvers
Facebook: www.facebook.com/mayyeosilvers
IG: www.instagram.com/mayyeosilvers
TikTok: https://www.tiktok.com/@mayyeosilvers
FB private group: https://www.facebook.com/groups/events4anyone
