How to Build the Right Small Business Team
Can you afford to bring on new employees? What roles will lead to significant growth? How do you navigate the hiring process?
These critical questions must be answered when building your team.
This guide will help you answer those questions, think beyond hiring, and retain and grow your team’s capabilities.
1. Determine the right time to hire employees
Here are four signs you need to hire employees:
– You turn down work due to a lack of time.
– You can’t pursue new revenue opportunities due to a lack of necessary skills.
– There is a decline in customer satisfaction.
– Your business has consistent revenue and can cover a new employee’s salary.
Weigh your options carefully when hiring. If unsure, start small with a part-time employee to assess the needed help and fit into your business.
Hiring is a significant step, so be honest about your business’s needs and capabilities.
Dig deeper:
– How to grow your founding team
– Should you hire freelancers or full-time employees?
– How to work with freelancers
– Things to consider before hiring friends and family
2. Define the roles you need
Here are key considerations to help you define the roles you need and decide who to hire first:
– Identify immediate needs for neglected or suboptimal tasks.
– Prioritize needs based on potential business impact.
– Create a personnel plan to forecast employee costs and the expected return on investment.
– Consider your budget and financial capacity to cover the costs of hiring new employees.
Dig deeper:
– Should you hire a board of advisors?
– Should you hire an executive team?
– When to hire a CEO
– When to hire a manager
3. Select employee benefits
A comprehensive compensation package, including competitive pay and meaningful benefits, is critical for attracting and retaining top talent.
When selecting benefits, understand how they impact personnel costs, what your competitors offer, and what benefits your employees want. Ensure the benefits you offer are competitive and fit your employees’ expectations.
Do your research and explore less costly options that are valuable to your employees.
Dig deeper:
– When to offer employee benefits
– Revenue-neutral employee benefits to consider
4. Be thorough and particular when hiring
Be careful and thorough when selecting and hiring candidates. Improve your chances of choosing the best candidates by:
– Refining the job description to clearly outline responsibilities, required skills, and expectations.
– Expanding your hiring advertising across multiple platforms to attract a diverse pool of candidates.
– Screening every applicant to select candidates with the required skills, growth potential, and alignment with your company culture.
– Diving deep during interviews with prepared questions that assess skills, experience, and fit for your company.
– Following up with contacts to verify qualifications and work ethic.
– Considering a trial period to assess performance and fit before making a long-term commitment.
Remember, hiring employees who will help your business grow is the goal. Being thorough and particular during the hiring process increases your chances of finding the right fit.
Dig deeper:
– 15 steps to hire a new employee
– How to recruit and retain top talent
– Traits to look for in your first employee
– How to write your first job description
– Questions to ask when interviewing
– Things to never ask job applicants
– How to reduce recruitment costs
5. Explain your vision and purpose
You need employees who feel invested and make an impact in their role. To establish this connection, have a mission statement that clearly explains the purpose of your business.
Ensure your mission is present in every aspect of your business. Keep these ideas front and center to reinforce how you and your employees pursue this significant purpose.
Be consistent and keep the mission supported and represented in day-to-day aspects of your business to foster employee connection.
6. Set performance goals
Break down the shared goal for your team into attainable individual goals. Ensure these goals support the broader business goal and lead to personal growth.
Use the SMART framework when setting goals, and make sure employees understand how their work contributes to company success. Measure and report performance with a system in place.
Dig deeper:
– How to create employee personal development plans
– How to evaluate employee performance
7. Foster a healthy work culture
Establish your company culture and be willing to evolve it as you add more employees. Clearly state expectations and foster open communication.
Include employees in the process, listen to their concerns and ideas, and establish a structure for feedback. The more you involve them, the more your business culture will thrive.
Dig deeper:
– What defines your company culture?
– How to establish an employee-centric culture
– How to create an inclusive workplace culture
– How to manage conflict in your business
Plan for the right team
Plan for the roles you need on your team before hiring. Know the gaps you need to fill and how much you’re willing to pay for those skill sets.
Document current employees and planned hires. Forecast personnel costs as part of a larger financial plan.
Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
Welcome to my digital space, where every piece of advice is a step closer to financial clarity and success!