Business By The Books with Danielle Hayden Can You Afford Your Next Big Hire? - Ep 162
Is hiring the best growth strategy for your business? In this episode, Danielle Hayden explores this critical question to provide business owners practical methods to evaluate if their business is ready to expand and strategies to grow their team effectively. She shares the Kickstart Accounting Inc. framework to help business owners assess whether they can afford to hire, how to budget for new hires, and take into account the often overlooked costs of hiring. Danielle also goes over the steps to take if your business is not profitable, and therefore, not ready to make new hires.
Tune in now to get the tools you need to make informed decisions about growing your team and your business!
Key Takeaways:
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Hiring for growth is a strategy that requires a careful balance between expanding capabilities and managing financial risks, ensuring sustainable business development.
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The Kickstart Accounting Inc. framework offers a systematic way for entrepreneurs to evaluate their hiring affordability, and features three key methods: the look-back, averages, and look-forward approach.
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Understanding your risk tolerance as a business owner is essential before hiring, as it will guide you in the best way to balance growth and finances.
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Salaries and hourly pay aren't the only expenses business owners need to consider when evaluating their readiness to hire; hidden costs like applicant tracking, payroll taxes and fees, equipment, and more also need to be taken into account.
Topics Discussed:
From solopreneur to leader: Danielle's decision to start hiring (2:15)
3 methods to assess if your business can afford to hire (5:54)
Assessing profitability: What if your business is not profitable? (8:30)
Benefits of using a budget-based method (10:07)
Financial benchmarks to meet before hiring (13:15)
The process and hidden costs of hiring (15:58)
Resources:
https://kickstartaccountinginc.com/hiring
Connect with Kickstart Accounting Inc.:
Instagram | https://www.instagram.com/Kickstartaccounting