When you're at the helm of a growing business, there will always be a temptation to add to your staff by finding more talented people and hiring them. Sometimes, though, it's not financially prudent to do so. You'd love to have another capable worker in house to help with the mounting workload, but whether you can afford to pay them is a borderline call.
You'd love to have another capable worker, but whether you can afford to pay them is a borderline call.
At times like this, which side do you err on? Do you hire aggressively, hoping the added productivity will more than pay for itself in the long run? Or do you play it safe, waiting to hire until you're absolutely sure you can afford it? Everyone has their own philosophy.
Before making any final decisions, it would be wise to take one last look at all your options and see if you can stretch your limited budget a tiny bit farther.
Are there government incentives to hire?
If you're unsure about making a hiring decision, one possibility to consider is whether there are any government incentives that make it more feasible. For example, South Australia is offering a cash grant of $10,000 to small businesses for each new employee they hire.
Con Tragakis, chairman for KPMG in South Australia, told Australian Financial Review that the grants are a "step in the right direction," as they offer companies the working capital they need to survive a hectic time financially.
"I certainly think it will have a positive impact," Mr Tragakis said of the new rule.
The federal government has estimated that employment growth for 2016-17 will be modest at best - probably around 0.75 per cent. With this in mind, the government is doing what it can to stimulate more job creation. If there's such a program available in your area, why not seize upon it?
Pushing forward despite a limited budget
Grants or no grants, you're probably going to have a tight budget when it comes to hiring new employees. Most small businesses do. With that in mind, you'll probably have to narrow your focus a bit, only spending money on candidates you're likely to hire.
A recent LinkedIn feature recommended this approach. Allan Waldron, who's worked in staffing in Australia on behalf of Senex Energy, explained that when you don't have the budget for a drawn-out hiring process, it's better to go with a more focused one.
"Rather than deal with 100 job applicants, I'd rather deal with a few people who I can really spend time with," Mr Waldron said.
When you don't have much money at your disposal, there's an extra incentive to make every single dollar count. And of course, if you don't have enough of those dollars available at the moment, it might be time to reach out for a little help with smoothing your cashflow.
Getting a little help with finding the cash
Are you having trouble growing your staff and still keeping the cash available that you need for day-to-day expenses? If so, you might need some assistance. At Earlypay, we're happy to help. Our debtor finance offering can give you up to 80 per cent of the amount you're owed in your unpaid invoices, and you can spend that cash on developing talent.
Companies of all sizes can benefit from a resource like this. Whether you're looking to add your second employee or your 52nd, there's always an opportunity to benefit from a little extra cashflow. Talk to us today if you're in need of a little boost.