This is a question I’m asked a lot by entrepreneurs who are starting their first business and are at the stage where they need to go from being a one man band to a small startup with employees.

It’s difficult to pinpoint the right time to expand from business owner to employer because every business is different, and grows at a different pace. However, when you find yourself struggling to reach the expectations of your customers – when you’re so in demand that you drop the ball and don’t have the capacity to take on any new clients – that’s a good indication you are ready to hire. 

As a startup, I understand that you’re worried about increasing your fixed costs, because I felt exactly the same when I was starting out. However, to fully capitalise on the opportunities available you need to hire staff. There is only so much you can do on your own and if you really want to scale, you’ll need some help along the way. You’ll also find the experience much more exciting as you begin to share it with a team of your own.

Employing staff can be daunting for the smallest companies, but if you’re already reaching your maximum output level, it’s the only way to boost your revenues, other than putting your prices up.

There are two things to think about if you’re considering employing your first member of staff:

Firstly, think about whether you’ve generated enough cash to cover their monthly salary. This critical monthly expenditure is unavoidable so you cannot make the mistake of employing somebody and offering them a salary before you know you can 100% deliver.

Secondly, make sure you have the demand and enough existing enquiries to warrant an additional overhead – that’s the only way you’ll counteract the extra expenditure. If you’re thinking of hiring somebody because you’re a little stressed but don’t actually have enough work to keep them busy and able to add value, then you should rethink your decision. As an entrepreneur, you need to get used to feeling stressed – that part comes with the job.

If you think you’re ready to hire your first employee it is essential to spend time thinking about what your new member of staff will do on a weekly basis. You need to have a clear idea of the tasks you’ll be expecting them to complete to ensure you keep them motivated, challenged and engaged.

So many entrepreneurs I meet underestimate the importance of measuring productivity and output. We’ve been bombarded with rhetoric on the productivity puzzle recently because finally, people are starting to see how important staff and general business productivity is for growth. You must be able to measure the output of your staff and how much value they are adding to the business. 

When you do hire, make sure you have a catch-up with your employee every week to review objectives and offer feedback on things they did well and what needs improving. I’d recommend meeting every Monday morning to set these objectives and start building a routine.

Establishing this structure in the beginning will only make it easier for you when it comes to expanding the team further.

I wish you all the best in your future endeavours.

Originally published on Linkedin Pulse.