MODERN START-UP required to free you up , the next step is to assess if it is likely that any one person possesses all of those skills . However , as the company grows a deeper knowledge of particular skills may be required . For example , simple book keeping may grow into the need for the skills of a qualified accountant . But the question is how many hours per week are required to meet the need and have you allowed for growth ? Is the “ not enough hours in the day ” cry really a sign that there is a need for a higher level of several skills spread over several different fields ? Therefore , you may need two or more people with different skills on a part time basis .
Three : Know when to expand
Having been brave enough to successfully establish a startup may cause you to think you are over the hump for risk taking . Nothing could be further from the truth . There is naturally a certain comfort from doing everything properly yourself . But once that confession of “ not enough hours in the day ” is heard or even recognised by others , the time to recruit is now . Remember expansion of resources is vital to keep the company momentum going as it will depend on you , having enough hours in the day concentrate on what you do best .
Four : Know what you can get
Having decided to expand the company necessitates gaining knowledge of support services that are available to small businesses . The earlier example of a book keeping task growing into an accountant role is applicable to many tasks . There are many services for small businesses that will set you free to be an entrepreneur . After all , if you can get more customers you can afford to invest in resources that allow you to focus on the core business . Another example of a distraction for startups is purchasing supplies . Maybe a person one day a week could be more organised than you . Once you investigate what services are available you may be pleasantly surprised by the range of skilled persons available to support you in growing your business . Don ’ t ’ get lost in the minutiae .
Five : How to employ : Freelancers or Salaried Staff ?
Option 1 - Freelancers This question causes a revisit of the business plan . What is the “ value proposition ” of the startup ? Back office tasks can often be outsourced gaining higher skills at better value . Other entrepreneurs have set up to provide a quality service at a competitive price based on a narrow set of skills , utilising very organised processes and high volume . These cost savings can assist you to be price competitive . These outsourced services could be called freelancers . Using many suchfree lancers can allow you to focus on your value proposition . The risk though is lack of commitment to your business . Option 2 - Salaried Staff
These are usually skilled persons who are required to deliver the products or services aligned with the core value proposition . These are the folks who build up the corporate skills and relationships with customers and other stakeholders such as regulators . They are perhaps the second stage of the startup journey . Salaried staff form the team that invest their careers with your company and build your company ’ s culture . Staff also are entitled to dream of bettering their careers . In joining your company they have declared that they share your dream enough to be there on the ground floor . If your business succeeds they hope to share the rewards . The risk with salaried staff for a startup is that the core product or service can be replicated by a full time employee .
As with any new business , you ’ re always in a high risk / high return situation . But it ’ s simple - employing the right staff at the right time yields high returns . Just make sure you ’ re clear on what kind of staff best meets the needs of your business .
Alan Manly is an entrepreneur with extensive experience owning and managing SMEs . He is also the author of When There Are Too Many Lawyers … There Is No Justice ($ 24.95 ), visit www . alanmanly . com . au
June 2016 ModernBusiness 31