Most designers start their firms as solopreneurs. As a solopreneur you may have found yourself not only wearing a variety of hats but also working long hours. Then you may reach a stage where you realize that if you want to grow your business, you can’t do it all. You may also come to the realization that there are certain parts of the business you don’t want to do. If you are honest with yourself, you will admit that there are parts of the business that others could do better. Imagine if you could work fewer hours and focus on the areas of the business you enjoy. This is the stage when you need to consider hiring your first employees and start building your team.
Why Hire?
The challenge for many solopreneurs is letting go, and the “I can do it better myself” excuse. Building a team is an investment – an investment that should increase your revenue and grow your firm.
- Pros of hiring: What if you could hire someone for much less than your billable rate and delegate some of your tasks? Particularly if you focus on unloading those tasks that you do not enjoy, do not do well and should not be doing as the business owner. That would give you more time for generating revenue and shorter working hours. More projects or larger projects offer the opportunity for more profit.
- Cons of hiring: You need to be willing to invest the time necessary to set up the hiring process, do the research, interview the candidates and then train them. BUT if you are not willing – re-read the pros!
When to Think About Hiring
- List the tasks you do every day. For each task, ask if you like doing it, are you the best person to do it, could you hire someone to do it, or could you outsource it?
- How much is your time worth? As your business grows are you spending too much time on non-billable tasks and not enough time on sales and billable hours? Which of the tasks you listed above could be done by someone for less money so you could use that time for billable activities?
- Have you already created efficient internal processes? Are you using tools that are available to help you be more efficient? Research and consider the following software solutions:
- Managing social media
- Marketing
- Accounting and project management software specific to the interior design industry
- Are you charging what you are worth AND have more work than you can handle? Is the increase in work the culmination of your having built up your business, or it is just a seasonal jump?
- Can you afford it? Find out what the going rate is in your area for the position you want to hire. Indeed.com or Glassdoor.com are two sites you might check. You should have a full pipeline and your cash flow and reserves should justify the additional investment. Options to consider before hiring a full-time team member:
- What will the monthly overhead costs be? That might include benefits, taxes, etc.
- What are the upfront costs? Consider if you will you need additional office space, equipment, etc.
- Can you outsource specific tasks you want to offload? Evaluate the pros and cons of outsourcing vs hiring full-time. Outsourcing may cost less if they live outside a major city and you may save on employee-related costs such as benefits, space needed, etc. It also may give you the flexibility to add to your team as needed and is a way to begin to grow your firm without a permanent hire. In addition, you might more easily find experts in specific areas outside of your local area. For example, a bookkeeper could easily be a virtual employee who works part time. On the other hand, in-house employees work only for you during their time in the office. Also, depending on your firm’s culture and your needs, having in-house team members can offer a definite advantage when they are there in person. A design assistant is a good example. Some tasks are a more challenging fit remotely than others. You just need to clarify what will work best for you.
Are You Ready to Hire?
- Have a very clear job description. You can’t start the search if you don’t know who and what you are looking for. What are the tasks you or other members of your team should not be doing? For example, are you trying to be a bookkeeper, social media expert, graphic designer and interior designer? Look at your bottom line and ask yourself if that makes sense. Focus on your expertise. Remember that you are the CEO of an interior design firm. Not the CEO of a bookkeeping or social media firm. So make that list of tasks you need to take off your plate and focus on bringing in the revenue to be able to start hiring a team to do those tasks. Organize where the tasks fall in the segments of the business: sales, marketing, bookkeeping, operations, design, etc. Then focus on who within those segments you need to hire.
- Include skills, experience, and other attributes you expect a new hire to have in addition to listing all the responsibilities of the job. Hire to balance the strengths and weaknesses of your current team (even if that is just you!).
- Be sure you have clearly defined your firm’s culture. It is one of your greatest assets, so hire according to your values. Create your vision, set your goals, know what you want your firm to achieve and how you plan to get there. Then as you build a team that fits your culture, they will be dedicated to helping you reach that vision – and growth will result. Finding an ideal team member is like finding an ideal client with negotiables and non-negotiables – identify them.
- Create a great ad for hiring and a process. How are you portraying your company and its culture – in job ads and job descriptions? Develop questions to ask and decide how you will make the final choice. Also seriously consider referrals and let people know you are searching – including any current team members, vendors, or partners. Chances are, they may know someone in the industry who is seeking a job.
- Interview. Pay attention to what a candidate doesn’t say and create a scenario to see how they problem-solve and deal with typical challenges. Hire for attitude, train for skills. Skills can be learned, but attitude is more ingrained. Have a current offer letter ready for when you’re ready to hire.
Who to Hire First?
That is the question many solopreneurs ask and often where mistakes are made.
Identify what can be taken off your plate to allow for more billable hours. The first hire may vary depending on your specific needs. Hire to balance the strengths and weaknesses of your current team (again, even if that is just you!) and define areas that need the most immediate fix. Some tasks you need to offload may only require part-time employees and that allows you to start building your team gradually. Most importantly, find the most experienced person you can hire as it will be less expensive in the long run. There will be less of your time needed for training. Then fill in your team as you grow.
Finally, when you find that ideal new team member and are ready to offer them the position, be sure you have an onboarding and training plan in place. Don’t forget the employee manual with policies for your firm and calendar a 90-day review. You don’t want to lose that great new hire because you weren’t organized enough to convince them you value them as much as the clients you serve.