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Moving from a couple of outsourced services to a position where you're ready to take on permanent staff members may not seem significant, but it's often a giant step for the small business owner.
A new business tends to start out small and takes a while to get on its feet. It may begin with a single entrepreneur and then, over time, may require a few freelancers to chip in here and there - and later, on a more regular basis. However, when an enterprise gains more clients, and demand for output and production increases substantially, outsourced services may no longer be adequate. At this stage, a number of full-time staff members is often required, each of whom is dedicated to specific operational tasks.
However, a commonly arising problem is the need for permanent staff before sufficient and consistent funding is available. Often, compromises have to be made to further the business. Candice Winterboer, owner of Alfalfa Content Generator, says that looking back she wishes she had brought in an extra set of hands earlier on, instead of trying to cope on her own for so long. 'And I should have looked for extra funding for the new person prior to that critical stage,' she says. Management style should also change. When managing permanent staff, it is up to the business owner to ensure that each team member is following their job descripition, sticking to deadlines and making good use of time. 'One of the biggest challenges,' explains Candice, 'is that freelance staff make their own schedules, while full-time staff need tighter parameters in which to work.'
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Expectations need to be more strictly managed with full-time staff. The onus of responsibility in a freelance situation is on the freelancer, while with full-time staff it's on the manager. 'While it seems that communication needs to be clear and to the point with freelancers, I've learned that there is more ongoing communication that takes place when it comes to full-time staff - this is to manage expectations and to make sure that what I see as a priority is the same as what the employee aims to prioritise,' she adds. With this added responsibility, it is essential that the owner of a growing business does some reading, starts some management-related business coaching or, at the very least, focuses in on honing their existing management skills.
Once a business has expanded and the owner now has a team to manage, countless tasks to allocate and a volume of work to oversee throughout the production process, they may suddenly find that they no longer have the time to handle certain operational aspects. 'You can't do everything yourself, so where you can outsource, just swallow the extra expense and do it. Aspects like public relations, accounting and the smaller day-to-day tasks, which once took up so much of your time, should now no longer be on your plate. This frees you up to focus on strategy and ways to push your business forward,' she enthuses.
At some point, it may also become necessary to hire a human resources (HR) manager to keep the hiring aspect of your business above board; a substantial investment for most companies. Having the right number of employees, with the right mix of skills, abilities and drive, is critical to the success of any company - no matter its size - and is best achieved by those qualified in the HR field. A professional in this line will keep job descriptions clear cut, will carry out thorough interviews, and will refrain from hiring staff that are going to slow your operations down and hold you back.
The training, experience and knowledge of your HR manager - similar to that of your accountant and PR consultant - can prove an asset to your business as it grows to a multiperson band.