Is it time to employ extra staff?

If you are a business owner then your ultimate goal will probably be to grow your business over time. It may be that you started off working on your own and as you take on more clients, you need more people to get the work done.

It may be a gradually build up or suddenly if you have a big job come in or to cover busy periods. Some businesses need to have more than one member of staff to even start trading and this can often be quite risky for start-up businesses that do not know how well they will succeed. If you employ someone you will need to ensure that you adhere to all the strict employment laws and pay them at least the minimum wage. You will also need to take tax off them and make a contribution to HMRC through their pay.

As a good business owner it is vital that you always have a good idea of what turnover and importantly, profit you are making. From this you can work out how much you can afford to pay an employee ensuring you still have enough profit within the company and also allowing for cash flow.

If you need extra help but do not want to employ someone you may decide to use sub-contractors or sub the work out to another company.