the startups.com platform about startups.comCheck out the new Startups.com - A Comprehensive Startup University
Education
Planning
Mentors
Funding
Customers
Assistants
Clarity
Categories
Business
Sales & Marketing
Funding
Product & Design
Technology
Skills & Management
Industries
Other
Business
Career Advice
Branding
Financial Consulting
Customer Engagement
Strategy
Sectors
Getting Started
Human Resources
Business Development
Legal
Other
Sales & Marketing
Social Media Marketing
Search Engine Optimization
Public Relations
Branding
Publishing
Inbound Marketing
Email Marketing
Copywriting
Growth Strategy
Search Engine Marketing
Sales & Lead Generation
Advertising
Other
Funding
Crowdfunding
Kickstarter
Venture Capital
Finance
Bootstrapping
Nonprofit
Other
Product & Design
Identity
User Experience
Lean Startup
Product Management
Metrics & Analytics
Other
Technology
WordPress
Software Development
Mobile
Ruby
CRM
Innovation
Cloud
Other
Skills & Management
Productivity
Entrepreneurship
Public Speaking
Leadership
Coaching
Other
Industries
SaaS
E-commerce
Education
Real Estate
Restaurant & Retail
Marketplaces
Nonprofit
Other
Dashboard
Browse Search
Answers
Calls
Inbox
Sign Up Log In

Loading...

Share Answer

Menu
Business Development: How do I know when I can afford to hire my first employee?
RR
RR
Ryan Rutan, Founding @Startups.com, Clarity, Fundable and more answered:

I'll echo some of what Christopher said, and agree that it's really more a matter of hiring someone when you can no longer afford not to hire them.

Do keep in mind that depending on the kind of work you are doing - you may be able to contract or part time hire some help, from an individual or a firm.

The determination of can I afford should always follow the question of "do I really need", and "for what."

All too often I see people hire before they have strongly determined the need for that person, and exactly how they will leverage them.

Think about all the things you are doing on a daily basis - and then think about which of those tasks you could give up, and which you are uniquely suited to handle. Is there enough work in the "things I can give up bucket" to keep someone busy? What would the impact to your day be in letting some of those things go? Would it allow for more sales? More development?

Another thing that is often overlooked is the short term impact on your time to onboard and train this person. The transition from a company of one, to a company of two is one of the most challenging - because the entire burden of helping them to help you, is on you.

I've been through this many times, and the approach and timing vary greatly depending on the type of business - but the base diligence of figuring out how much you need this person, and what transformation that will bring about in the business is always the starting point, and never a waste of time.

I hope the above helps!

Cheers,

Ryan

Talk to Ryan Upvote • Share
•••
Share Report

Answer URL

Share Question

  • Share on Twitter
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Share by email
About
  • How it Works
  • Success Stories
Experts
  • Become an Expert
  • Find an Expert
Answers
  • Ask a Question
  • Recent Answers
Support
  • Help
  • Terms of Service
Follow

the startups.com platform

Startups Education
Startup Planning
Access Mentors
Secure Funding
Reach Customers
Virtual Assistants

Copyright © 2025 Startups.com. All rights reserved.