When Should You Hire Your First Employee?

Every business owner started their own business by just themselves. The late nights of planning, of thinking, and implementing and you simply don’t have enough time on your hands to do other much more important things, like getting more clients or customers or maybe spend time with your loved ones. Then it will come to a point where you will really ask yourself if it’s the right time to really hire your first employee.

Because all successful businesses will have to start taking on employees, and that’s when the fun really begins. Hiring employees takes time and there are also things you might need to consider. There are processes that need to be done.


Woman getting hired from an interview

List of advantages and disadvantages

Trying to figure out whether the time is right, maybe as simple as making your own pros and cons list. But this is a good initial step before you look into cash flow, last year’s financials, and your workload. Consider this testing the waters. Here’s an example list:

Advantages of hiring a new employee:

  • You’ll have more help to handle the tasks that are overwhelming you.
  • A new employee can breathe new life into your business and generate new ideas.
  • Someone will be there to share those exciting moments. As Johnson says, you’ll have “someone to high five” when things go right.

Disadvantages of hiring a new employee:

  • An employee costs you money.
  • There are more tax forms to juggle.
  • A new employee requires a big-time investment upfront.
  • You’ll carry the added stress of another person being dependent on your business.
  • You’ll need to manage and monitor the new employee.

Once you’ve created your list, and perhaps once the advantages outweigh the disadvantages, you can move on to the next step – genuinely trying to work out whether or not you should hire a new employee.

Woman Asking Interview Questions

Here’s some common red flags to help you decide if its really a good decision to hire an employee:

1. You’re turning down work

– If you happen to find yourself bombarded with work and your in the situation where you’re turning down some of the work and clients. Then this is one good reason where you should get some help and hire an employee.

2. Your customers are complaining

– We can’t really avoid the fact that every business there are few complaints from customers, whether it’s from your service, your products, your website or for the long waits.

If this is the case then you should consider getting help to address some of these concerns.

3. You don’t have time to do daily financials, bookkeeping, and paperwork

– If this is your case, then its best to hire a bookkeeper or an accountant that can help you out with your paperworks. This will also give you more time to focus more on getting more clients and customers.

4. You need someone with a specific skill set

– I believe this is the common reason why business owners hire their first employee, they need help on some skills that they don’t possess like creating and maintaining a website.

5. You can’t find any time for a break or a vacation

  • We all need a break, so if you find yourself so busy at work and not having family time or free time for yourself then you need to hire someone. 


For new business owners, every day is a challenge. You rely solely on yourself to build your business and maintain your livelihood. But the point of building a business is to grow and when you’ve reached the limit of what you can do alone, it’s time to bring somebody on to help the growth continue. Now you know when it’s time.