Hiring vs Staying Lean
Hiring can feel like growth. Sometimes it is. Sometimes it just adds cost and complexity before you're ready. This lesson helps you decide when to hire and when to stay lean.
When to Bring On Your First Employee
The right time to hire is when:
- You are turning down work or missing leads because you can't keep up
- Your revenue is steady enough to cover wages plus extra costs with money left over
- You've written down the job clearly enough to train someone
- You're doing tasks that don't actually need your skills or attention
The wrong time to hire is when you had one busy week, or when income is still up and down.
The Real Cost of Hiring
A $20-per-hour employee doesn't cost $20 per hour. You're also paying:
- Payroll taxes (roughly 7.65%)
- Workers' comp insurance
- Equipment, tools, or a vehicle
- Your time to train, check their work, and fix mistakes
- Lower quality risk while they're still learning
The real cost of a $20-per-hour hire is often $28 to $35 per hour or more. Plan for that.
How to Grow Revenue While Staying Lean
Before hiring, look at:
- Subcontractors -- Pay per job, no overhead, they bring their own tools
- Automation -- Scheduling software, automatic follow-ups, online booking
- Better pricing -- Make more per job instead of doing more jobs
- Referral partners -- Let other businesses send you leads instead of marketing more
Many solo operators make $150,000 to $300,000 a year with no employees by being smart about it. Don't hire because it feels like the next step. Hire because the numbers say you need to.