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10 Signs For Small Businesses To Start Hiring Employees

Updated: Mar 23, 2023

As per the survey carried out among small business owners, 38% of start-ups did not work out due to running out of funds and 14% did not survive because of not having the right team or talent.

Not being able to build the right talent is at the top of the 10 reasons for small businesses to fail, making it a significant factor to be considered. It happens for several reasons, either you didn't have the funds for hiring or you couldn't assess when to start hiring or expand your team.

When it comes to small businesses, owners are often tasked with wearing many hats. From bookkeeping and marketing to sales and customer service, it can be tough to know when the time is right to bring on an extra set of hands. Here are a few factors to consider when making the decision:

graph explaining main reasons in new start-ups failure.

1. You Are Saying 'No' To New Business

As a small business owner, you may find yourself in the position of being unable to take on more work because you are at capacity. This is when you should start considering hiring someone to help you with the workload.

Hiring someone will free up your time so that you can focus on other aspects of your business, and it will also allow you to take on more work.

Also, hiring can help you to grow your business. By taking on more work, you will be able to bring in more revenue and expand your operations.

2. You Are Planning To Expand

Hiring is a big decision for any small business owner. After all, adding new team members can be a significant expense. However, there are also many benefits to expanding your team when you're planning to move into new revenue streams.

For example, if you're planning to launch a new product line or enter a new market, you will need additional staff to help with research and development, marketing, and sales.

Hiring will help you free up time to focus on your new business venture. Also, it'll bring in new perspectives and ideas.

3. The Quality Of Your Products And Services Starts Declining

The success of your small business depends on the quality of your products and services. Being a small business owner, you may be tempted to cut costs by not hiring new employees. However, this can be a costly mistake.

When customers begin to notice that the quality of your products or services is slipping, they will start to look for other options. This can lead to a loss in market share and revenue.

Also, when the quality declines, it can damage your reputation and make it difficult to attract new customers. And if you don't take the action at the right time, you'll likely find yourself facing even greater problems down the road.

So when it starts happening, hire someone to help you turn things around.

client is angry with the beautician due to bad service

4. Customer Service Starts Lacking

When you first begin, you may be able to handle all of the customer service yourself. However, as your business grows, you will likely reach a point where you can no longer keep up with the demand. At this point, it is important to start hiring customer service employees.

There are a few reasons why this is essential for the continued success of your business.

  1. First, when customers are unable to get in touch with someone when they need assistance, they will likely become frustrated and may take their business elsewhere.

  2. Second, if you are constantly dealing with customer service issues, you will have less time to focus on other aspects of your business.

  3. Third, if your customers are unhappy with the level of service they are receiving, it can damage your reputation and make it difficult to grow your business effectively.

5. Your Employees Are Swamped

You know it's time to hire when your employees are maxed out. Working long hours and burning the midnight oil is not a sustainable business model. At some point, you need to bring in reinforcements.

The question is when? Hiring too soon can put a strain on your finances. But hiring too late can cost you even more in lost productivity and overworked employees. Here are a few things to keep in mind when deciding when to hire in your small business.

  1. Take a close look at your employee productivity. Are they working at full capacity or are there still some idle moments during the day? If they're already working at full tilt, it's time to start thinking about hiring.

  2. Next, consider your company's growth projections. Are you expecting a big increase in sales or revenue? If so, you'll need to staff up accordingly.

  3. Finally, think about the impact of not hiring. Will overworked employees start making mistakes? Will customers start leaving for greener pastures?

Weigh the costs and benefits and make the decision that's right for your business.

6. You Are Exhausted

The early stages of a startup are critical. It's when you lay the foundations for your company, develop your product, and begin to acquire customers. But it's also a time when many startups fail. One of the key reasons for this is burnout.

When founders get exhausted, they often lose sight of their original vision and become less passionate about their company. This can lead to bad decision-making and ultimately doom the startup.

Trying to do everything yourself is not only exhausting, but it's also a sure recipe for burnout. By hiring extra help, you can free up your time and energy to focus on the most important aspects of your business.

small business owner is burned out due to work overload

7. Top Talent Is Performing Insignificant Tasks

Hiring when your top talent is performing insignificant tasks may seem counterintuitive, but it can be a smart move for your small business. For one thing, it frees up your top talent to focus on more important tasks that can help grow your business.

It shows your employees that you are willing to invest in their development and that you value their skills and abilities. When employees feel like they are valued and that their skills are being used to their full potential, they are more likely to stick around.

8. Have No Time For Financials And Bookkeeping

As a small business owner, there are a lot of things you have to keep track of. From inventory and finances to bookkeeping and marketing, it can be easy to feel overwhelmed. When you're bogged down with operational tasks, it can be tough to find time to focus on growing your business. That's when it's time to start thinking about hiring help.

If you're spending all your time on operational tasks, you're not going to have much energy left over for developing new products or services, expanding into new markets, or working on strategic planning. Hiring someone to take care of the day-to-day tasks can free up your time so you can focus on the big picture.

9. You Are In Need Of A Specific Skillset

When you first start a small business, you probably wear many hats, handling all aspects of the business yourself. As your business grows, however, you will likely find that there are certain areas in which you do not have the skill set required to be successful.

For instance, you manage social media well but don't know how to do SEO for your business. At this point, it is time to start thinking about hiring someone who can fill this gap.

While it may seem like an unnecessary expense, hiring someone with the right skillset can save you money in the long run by helping your business to run more smoothly and efficiently.

employees sitting together showing a team based on different skillset

10. When Bringing Some Skills In-House

It's a long road when it comes to establishing your business. Outsourcing a few departments, in the beginning, is always helpful but after some time, you may want to bring in those skills in-house for more control.

One of the most important skills is marketing. However, it can be expensive to hire a professional marketing firm. By bringing marketing in-house, small businesses can save money and have more control over their marketing campaigns.

Another skill that small businesses can benefit from bringing in-house is human resources. By bringing human resources in-house, small businesses can save money on external consultants and have more control over their workforce.


As your small business grows, you'll need to decide when it's time to start hiring staff. By understanding these signs that indicate it's time to hire, you can ensure that your business is able to continue growing and avoid any potential setbacks.

We help small businesses grow and succeed with branding and marketing solutions. If you need any help in those areas, get in touch with us.


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