You may have built your business and have run it alone for years, but you may be getting to the point where you can’t handle working in and on your business. You either have to cut back or hire employees.
If you’ve had the urge to grow your business beyond its current state, you’re not alone. Many solopreneurs know in their heart it may be time to scale up. But it’s scary!
Solopreneurs who become employers hire virtual assistants and/or lease a building or office space with employees working on site. Only you know what’s best for you.
Keep reading to discover how you can transition from a solopreneur to an employer. Let’s get started!
Why You May Not Want to Become an Employer
Growing your business and becoming an employer may interest you. But you may want to consider the following drawbacks.
Employees
As a solopreneur, you’re the sole employee. If you become an employer, you’ll have to determine how many employees to hire. You’ll also need to consider personalities because you want to avoid as much workplace drama as possible. Overall, you may find the process to be emotionally draining, especially if you have to fire employees.
Management
You may have thought having employees will free up your time. Think again. You’ll have to oversee your employees to ensure the work gets done. Plus, you may have to train them on new software, e.g., QuickBooks and TSheets. Of course, you could hire an office manager. But you’d still have to oversee him or her.
Office Space
As a solopreneur, you work out of your home office with the occasional meeting at a coffee shop, library, or your chamber of commerce’s conference room. When you work with employees, you need to lease office space because you need to work together.
Regulation Requirements
You’ll need to consult with your attorney, CPA, and possibly other professionals about the federal, local, and state labor laws. Many are common sense, but you can’t know all of them without hiring experts.
Responsibility
Are you ready for the responsibility of being liable for the livelihood of employees? As a solopreneur, you only had to worry about your income. If you have 10 employees who rely on your business to provide for their families, you’ll need to ensure your business grows each year.
Taxes
As a solopreneur, you pay your taxes. If you hire contactors, they’re responsible for paying taxes. When you hire employees, you have to process withholding payroll taxes. It’s another added responsibility, one that may require the assistance of a CPA.
Tips to Help You Transition from Solopreneur to Employer
Becoming an employer is a huge step in your solopreneur life. Here are some tips to help you make the transition.
Get Expert Advice
If you want to file as an LLC or C-Corp, hire an attorney (CPA can help too) to help you navigate the paperwork. Work with CPA to file your EIN (if you don’t have one) and establish internal controls. Not only can you prevent fraud, but you can have checks and balances in place to ensure your financials are accurate.
Develop Training
Even experienced employees need to understand how you want things done in your business. Whether you work with professionals, skilled staff or unskilled staff – all employees require sufficient training to build their skills to fit the needs of your company. You may consider working with a business coach or development firm to help you determine the best training program for your organization. As your business grows, training can be tweaked.
Hire the Right Employees
You may want to hire a human resources firm to assist with hiring employees. They can administer personality tests and help you determine employees who are the right fit for your business.
Do You Want to Progress from Solopreneur to Employer?
Imagine becoming an employer. Have you leased office space? Do you see yourself delegating responsibilities to your employees? How does it feel? Before you jump from solopreneur to employer, make sure it’s the right move for you.
Work diligently towards your goal of business growth, from managing employees to knowing when to slow down. Remember, timing is everything!
Have you jumped from solopreneur to employer? What was the first step you took? Share your experience in the comments.
P.S. Want more information about business consulting? Get Brolin Business Basics Consulting today. We keep it simple with solid solutions for you!
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