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Determining the Right Time to Hire More People for Your Start-Up Company

Updated: Jul 11, 2024


people gathered around a grand opening sign

As a start-up company, one of the biggest challenges you face is knowing when to hire more people. On the one hand, you need to keep costs low to stay afloat. On the other hand, you can't grow your business without the right people in place. So, how do you know when it's the right time to bring on more staff? In this article, we'll explore some of the key factors to consider when making this decision.


1. Workload

One of the most obvious signs that you need to hire more staff is when your workload is overwhelming. If you and your existing team are struggling to keep up with demand, it's time to start thinking about expanding your workforce. This is especially true if you're turning down business or missing deadlines because you don't have enough hands on deck. Remember that overworking your current staff can lead to burnout and low morale, which can have a negative impact on your business in the long run.


2. Revenue

Another factor to consider is your revenue. If you're consistently bringing in more money than you're spending, it may be a good time to start hiring. Of course, you'll need to factor in the cost of salaries and benefits, but if you can afford to pay new employees and still turn a profit, it's worth considering. This is especially true if you're turning down business because you don't have enough staff to handle it.


3. Growth Goals

Every start-up has growth goals, whether it's to expand into new markets, increase sales, or develop new products. When your business goals require more staff to achieve, it's time to start hiring. This is a sign that your business is ready to take the next step and that you're confident in its long-term success.


4. Skills Gap

Sometimes, you may need to hire more people to fill a skills gap in your existing team. For example, if you're launching a new product that requires expertise in a certain area, you may need to hire someone with that skill set. Alternatively, if you're expanding into a new market or launching a new service, you may need to hire staff with experience in that area. While it can be tempting to try to fill the gap with existing staff, it's often more efficient and effective to hire someone with the right skills and experience.


5. Timing

Finally, timing is a crucial factor to consider when deciding when to hire more staff. Hiring too early can strain your finances and lead to overstaffing, while hiring too late can result in missed opportunities and missed deadlines. The key is to find the right balance and make hiring decisions based on your business needs rather than your emotions or intuition.


How Emory Alva Can Help

At Emory Alva, we understand the challenges facing start-up companies when it comes to hiring. That's why we offer customized consulting services to help you make informed decisions about when and how to hire new staff. We can help you evaluate your workload, revenue, growth goals, skills gaps, and timing to determine the best course of action. Additionally, we can assist you in setting up the tools and processes necessary to accelerate your hiring and ensure that you're bringing on the right people for your business.


Bottom Line

Knowing when to hire more staff is a challenge for any start-up company. By considering your workload, revenue, growth goals, skills gaps, and timing, you can make informed decisions that support your business goals. Remember that overworking your existing staff can lead to burnout and low morale, while hiring too early or too late can strain your finances and hurt your bottom line. At Emory Alva, we can help you make these decisions with confidence and set your business up for success.

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