Every small business owner loves to see their company grow. With growing sales, however, comes growing expenses. One area of your business that will need more investment is your team. It’s important to add members to your team before you get so busy that things start falling through the cracks. The challenge to adding employees, though is whether you can afford to hire more employees or not.
According to an NFIB (National Federation of Independent Business) survey of small business owners, 42% of respondents are having difficulty filling open positions at their company. As businesses begin to reopen or increase in activity, not having enough employees is a large concern for business owners.
Do You Have the Cash on Hand to Afford to Hire More Employees?
A major concern for small businesses is having enough cash on hand to cover payroll and afford the cost of onboarding a new employee. The hiring process can take time, and you should account for a learning period while you catch your new hire up to speed. Further, offering attractive benefits and higher salaries will help your company win over qualified candidates.
Will You Be Able to Keep Your New Hire?
High employee turnover will damage your business. Not only can turnover shake up the morale of your team, but it will also affect your bottom line. It pays to have a healthy work environment. Investing in your team is a good business decision that will pay off over time.
Can You Afford to Hire More Employees Through a Staffing Company?
One solution to hiring new employees is using a temp service or a staffing agency. Staffing companies can help find qualified applicants, and you have a trial phase to see if they fit for your business. Further, hiring temporary employees can give your business the time it needs to strengthen your cash flow and be able to meet the obligation of a larger payroll.
Strengthen Your Cash Flow and Grow Your Business Smoothly
Regardless of whether you are adding to your team or not, cash flow will remain a priority. Cash flow funding services like invoice factoring can provide the opportunity for your business to bring on more employees. Nearly a quarter of businesses expect to grow their team this year. Having strong cash flow will make sure that your business grows smoothly!