You’re overwhelmed. You’re answering emails, following up with leads, working with clients, handling bookkeeping, marketing your business, managing the administrative work… and somewhere in the middle of all of that, you’re supposed to actually run the business. So naturally, you start thinking: I need to hire someone. Maybe you do. But before you post the job, hire the VA, or add another person to payroll, there’s a much bigger question we need to answer: Can your business actually afford to hire someone? In this episode of Your Business on Purpose, I’m walking you through the financial questions I want you to ask before making that commitment. Because being overwhelmed doesn’t automatically mean you’re understaffed. Sometimes you need another person. Sometimes you need better systems. Sometimes something needs to be automated. Sometimes you need a contractor for five hours a week instead of an employee for 20. And sometimes you need to stop doing something altogether. And if hiring really is the right next step, we need to understand what that person is actually going to cost your business. We’re talking about more than their hourly rate or salary. In this episode, we dive into: • How to determine whether hiring is actually the solution to your problem• The true cost of adding an employee to your business• Why your bank balance does NOT tell you whether you can afford to hire• Why you should look at the last three to six months of revenue and cash flow before committing to another recurring expense• What happens to payroll and your own paycheck when revenue drops• How much financial breathing room you should consider before hiring• The difference between hiring because you’re overwhelmed and hiring strategically for growth• The question every business owner should ask: What will this person produce, or what will they free me up to produce?• Why getting 10 hours back doesn’t help your business if you simply fill those hours with more busy work• How to decide whether you need an employee, contractor, VA, automation, outsourcing, or simply a better system One of the biggest mistakes I see business owners make is hiring someone to relieve one kind of stress, only to create another because now they’re worried about making payroll every month. I don’t want you making major financial decisions based on what you think your business can afford. I want you to understand your numbers well enough to say: Yes, my business can support this. Or… No, we’re not there yet, and I know exactly what needs to happen before we are. That is financial confidence. If you’re listening to this episode and thinking, “Okay Dawnette, but I don’t know how to answer these questions,” this is exactly where I want you to start. I created my Financial Literacy for Business Owners ebook for business owners who are really good at what they do, but were never taught how to understand the financial side of running a business. We’ll walk through the financial foundations you need to understand your cash flow, profit, taxes, budgeting, financial statements and the numbers behind the decisions you’re making. Whether you’re deciding if you can afford to hire, buy equipment, raise your prices, expand, or make another investment in your business, your bank balance should not be the only number making that decision for you. Download your free copy here: https://www.yourmoneyonpurpose.com Then pull up your numbers and actually go through it. The more you understand your business financially, the more confidently you can decide what comes next. And if you know another business owner who keeps saying, “I need to hire someone,” send them this episode. Growth isn’t about doing more or hiring more people. It’s about making sure the decisions you’re making today can support the business you’re trying to create tomorrow. Until next time, keep building your business on purpose. FREE RESOURCE: Financial Literacy for Business Owners
