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4 Key Indicators It's Time for You to Hire Your First Employees and Stop Doing Everything Alone Deciding on the perfect timing to make the shift from solopreneur to team leader can be challenging, but there are certain signs of whether you are prepared or not to take the plunge and recruit staff. Take a look and see if you've reached these milestones and if you should start thinking about hiring outside help.

By Jason Miller Edited by Kara McIntyre

Opinions expressed by Entrepreneur contributors are their own.

Recognizing when to transition from a solopreneur to a team leader by hiring employees is crucial for sustainable growth. Most of my time with Strategic Advisor Board (SAB) is spent consulting new business owners reaching this pivotal point in scaling. Many business owners know they need help with maintaining their workload and deliverables, but they're afraid of having enough resources to bring on employees and still be profitable.

Let's explore the key indicators I teach new business owners that signal the need for expansion and practical insights on navigating the transition efficiently and effectively.

Related: 6 Signs It's Time to Hire Employees for Your Startup

1. Overwhelming workload and burnout

As a solopreneur, you are tasked to fulfill every need and request of your business, I was there at one point myself when I started. From operations to marketing, and customer service to administration — it's all you. This is a time of 60-hour work weeks and zero personal time; all work and no play. Your partner tells you they don't recognize you anymore and your kids complain about all the soccer games and recitals you have missed. Your friends may even wonder if you are alive anymore.

Many of my clients feel hopeless and as though they just created their own 9 to 5 (or 9 to 9) instead of an actual business. Hiring employees can help distribute tasks more effectively, reduce stress and improve your work-life balance. By delegating responsibilities, you'll have more time and energy to focus on strategic initiatives and higher-value activities that drive growth.

2. Declining productivity and quality

Maintaining high productivity and delivering exceptional quality can be challenging for solopreneurs juggling multiple responsibilities. When you notice a decline in your output or struggle to meet customer expectations consistently, it's a sign you need to bring in outside help. It often looks like missed deadlines, subpar projects being sent out the door and struggling to bring in new clients because you don't have enough time to bring on more business and still get everything done. This decline may be due to being spread too thin, lacking a specialized skill or simply running out of time to deliver high-quality work.

Bringing in skilled employees can not only enhance productivity but also streamline processes and ensure your products or services maintain high standards. When it's time to bring in help, I understand it can be scary to hire a full-time employee. That's why I tell my clients it may be easier to ease into the hiring process with a part-time employee or contractor.

Related: Hiring Your First Employee? 5 Things You Need to Know.

3. Limited time for strategic growth

A comprehensive growth strategy becomes crucial as your business matures. If you cannot dedicate sufficient time to plan for the future and you spend more time working in your business rather than on it, you need additional resources. One effective way to optimize your business is by hiring employees to manage daily operational tasks. This would enable you to devote more time and attention to strategic initiatives like exploring new market opportunities, developing partnerships or expanding into new product lines or services.

By prioritizing strategic growth, you can fully unleash your business's potential and stay ahead of the competition. I always focus my efforts on how best to create smaller inputs in my companies that provide far larger outputs in terms of revenue generation. This also allows you to allocate more funds to reducing tactical tasks and workloads on your end and delegate appropriately.

4. Increased customer demand

A growing customer base is a positive sign of business success, but it can also strain your capacity as a solopreneur. If you find yourself consistently overwhelmed by customer demand or are forced to turn away potential clients, it's a strong indicator that you're ready for expansion. Hiring employees allows you to scale your operations to meet customer expectations. You can deliver prompt and efficient service with a team, maintain high customer satisfaction and capitalize on new business opportunities.

Additionally, as you grow your customer base, having employees who can focus on customer relationship management becomes vital, ensuring each client receives the attention they deserve. The increase in customer demand also stresses fulfillment and leads to an imbalance in the growth and scale of the company. Putting the right people in the key seats that support fulfillment will relieve this strain. This is a lesson I learned by practical application a decade ago.

Related: 4 Things Every Entrepreneur Must Consider Before Hiring Their First, or Next, Employee.

Requiring new diverse skillsets

Early on when I work with clients, I suggest they take a personal time inventory or a "time study." First, look into where your skills aren't at the highest level they could be, and then find out what you're spending way too much time doing on a weekly basis. If you're not strong in marketing or you're spending way too much time balancing your books, consider finding an employee that brings these skills to the table. This will establish a more varied and capable team, enabling your business to progress in further growth.

If you're a small business owner, expanding from solopreneurship to having employees is a crucial step toward growth and sustainability. You can identify signs such as reduced productivity, insufficient time for strategic growth, increased customer demand and excessive workload to decide when to diversify your skillsets by hiring employees.

Establishing a strong team of members who share your business's values and mission is crucial for achieving sustained success. Skilled individuals can lead to discovering new prospects and driving your business forward, and by having more hands on deck and more minds problem solving, no doubt your business will head towards growth. Creating the right dynamic team is and will always be a challenge. Take your time and interview many people to fill key roles before actually hiring them. Ensuring you have the right people in the right seats on the bus will be critical to your success in being able to scale your company from a solo operation to a full-grown business.

Jason Miller

CEO of the Strategic Advisor Board

Jason Miller is a seasoned CEO with an overwhelming passion to help other business owners and CEOs succeed. He was nicknamed Jason “The Bull” Miller because he takes no BS and no excuses from the people he serves. He has mentored thousands of people over more than two decades.

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