First
of all, hiring your second employee is easier for the simple reason
that you have done it before. You are aware of the implications, the
administrative side, and you gained your first experience as being 'a
boss.' That will make the process easier.
Let's now look at the
risk side. In a previous post, I put forward a little calculation
model on when to hire your first employee as a sole proprietor with
little funds at your disposal.
Pure mathematically, going from one
to two, represents 100% growth. You doubled your companies'
staff.
Going from two to three represents a 50% growth - available
work capacity going from 80 to 120 hours per week. When you see that
you and your first employee are consistently putting 33 to 40 hours
of overtime per week, you might consider hiring again.
The same
goes for employees three, four, and five; it becomes easier every
time.
Well done!
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10 about the author; Erik Victor
1. is a serial
entrepreneur and started his career in Engineering
2. currently a
majority shareholder in corporations in the fields of Industrial Real
Estate, Wealth Management & Investment funds, and International
Tax Planning
3. has a passion for the dynamics of young
businesses and actively endorses several start-ups
4. is an
engaged member of several think-tanks and an international conference
speaker
5. has a business footprint in six countries
6. speaks
five languages
7. personal life - resides in Europe
8. Erik
(48) is known as a discrete and private person, a family man
9.
loves to spend his limited holidays in the mountains or at sea on his
yacht
10. Erik has no social media accounts
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