Typically, owners don’t start thinking about their next hire until they’re at the worst possible moment, when they’re already stretched thin.
By then, the pull is to hire whoever is available because every day without help costs you something.
The trick is to start setting money aside now, even before you know exactly when or who you’ll hire.
Start a hiring reserve now
Open a dedicated hiring reserve account and put even $500 a month into it.
Get clear on the role before you hire
Then get clear on the role.
What are the three to five revenue-driving responsibilities this person would own, and what are the success metrics for each?
A lot of entrepreneurs hire someone because a friend knows them, give them a big job title, and only later realize the role was never well defined.
Slowing down to get crystal clear on what you need before you invest is what prevents that.
Hire for character, then trust them to grow
Hire people who love to learn and grow, who care about others, and who have principles.
Then trust them to fulfill their role and let them grow by exploring.
When the need does show up, the money is waiting and the role is already defined.
If you’d like help figuring out if you’re ready to hire and how to fund it, our Ecommerce Business Performance Assessment can help.
Cyndi
For my next research question I’d like to know: when did you last open your P&L?
Quick Summary
- Don’t wait until you’re stretched thin. Owners who plan their next hire only when they’re overwhelmed tend to hire whoever is available.
- Set aside funds to hire before you need to. Open a dedicated hiring reserve account and fund it consistently, even $500 a month.
- Define the role first. List the three to five revenue-driving responsibilities the person will own and a success metric for each.
- Hire for character. Look for people who love to learn, care about others, and have principles, then trust them to grow.
- Result: when the need arrives, the money is ready and the role is already clear.
Frequently Asked Questions
When should an ecommerce owner start planning for their next hire?
Before you need help. Most owners start thinking about hiring when they’re already stretched thin, which creates pressure to hire whoever is available. Planning early gives you time to fund the hire and define the role properly.
How do I set aside funds to hire an employee?
Open a dedicated hiring reserve account, separate from your operating account, and transfer a set amount into it every month. Cyndi Thomason suggests starting with even $500 a month. The goal is to build the reserve before you know exactly when or who you’ll hire.
How do I define a new role before hiring?
Identify the three to five revenue-driving responsibilities the new person will own, and set a success metric for each one. A clearly defined role prevents the common mistake of hiring someone through a personal connection, giving them a big title, and realizing later the job was never well defined.
What qualities should I look for when hiring for a growing business?
Look for people who love to learn and grow, who care about others, and who have principles. Then trust them to fulfill their role and give them room to grow by exploring.
How do I know if my ecommerce business is ready to hire?
Start by checking whether you have the funds set aside and a clearly defined role. For a fuller picture of your business’s financial health, take Your Profit Team’s free Ecommerce Business Performance Assessment.
Related reading: How Do I Create Processes So My Business Doesn’t Depend Entirely on Me? | How Do I Get My Team to Stop Asking Me for Every Answer?
Ready to take control of your cash flow? Your Profit Team helps ecommerce owners forecast cash, plan inventory, and keep more profit with the Profit First method.
