Your business is going well – congrats! – and you now find yourself thinking: Is it time to scale? Running a business is hard work, and it can be very temping to have access to a second – or third – set of hands. However, there are a series of things to consider before taking the plunge.
Is an extra person really necessary?
Though adding to your team – or taking your one-man-show to the next level – can be great, you need to make sure you truly need an extra person before considering anything else. For instance, having tasks you’d rather not deal with is not a good enough indicator, as there will always be aspects to your job you won’t enjoy doing as much.
So, how can you tell? Especially if this is the first time you will be hiring, it may be quite hard to decide if you are really in need of expanding, but finding you need to turn down work is a good indicator. If you are running out of time to call back leads, or you find yourself needing to refer/turn-down projects, it is pretty safe to assume getting someone to help out will generate more revenue for your business.
Alternatively, it could be that your business needs the addition of a skill set you don’t have. For example, your product is ready to hit the market and you want to hire someone to help with the marketing. Again, if adding a skill set will lead to more revenue you should feel comfortable bringing someone on-board.
Staff or freelance?
All right, you considered your needs and you concluded you need to scale up, but is working with a freelancer of getting staff the better choice in your case? First off you need to check the type of your registered business – as a ZZP for example pay rolling is not possible (as the tittle already implies) leaving you with the choice of collaborating with other freelancers/companies.
If you can legally do either, first think of the length of the period you expect to be needing help for. Working with a freelancer is a safer choice if you are looking at short-term hiring. If you got a new project that needs a more experienced designer, for example, but have no other projects – current or expected – requiring the same expertise you are better off not going down the pay-rolling route.
Secondly, make sure you explore and understand the legal ramifications. In the Netherlands employees have a strong legal standing, and in order to make sure you don’t have trouble later on you need to know what you are getting into. For instance, trial periods are legally only allowed in contracts longer than 6 months, and you can offer a limited number of contracts to the same employee before his/her position is considered permanent at the eyes of the law. Seek information on these – and other employment related issues – before making a decision.
Don’t forget to consider, also, the extra costs that may be required when hiring staff. Especially, if this is your first time in the role of employer you will need help drafting employment contracts and preparing pay slips. Though you could find advice online on these issues, I would strongly suggest also seeking the advice of a professional (or someone with proven experience) to avoid legal issues and/or fines.
Is that all?
Give yourself the time to properly consider this important decision, but also remember: though scaling up is risky, it is also the only way to grow your business past your own limits. If you feel you are ready, take the plunge and as long as you have done your research you should have a legal agreement in your hands that wont leave you open to too much risk.