Hiring Help: You Can't Do It All Yourself

July 10, 2007 — -- Bill Morland thought he made it through the hardest part of owning a small business when his inventory liquidation firm survived the first few months. But for Morland, and every other home-based business owner, the hardest part was yet to come: hiring help.

"Most business owners start out doing everything," said Morland, a former corporate executive who owned five small businesses but is now retired. "No one has the skills to do everything. Some think they do, but it is impossible."

As the director for the Orange County, Calif., chapter of SCORE, a branch of the Small Business Administration, Morland now spends his days advising other business owners on surviving and thriving.

"I tell them it's like a toothache," he said of the need for that first employee. "You feel it when it hurts, but you just ignore it until it becomes so painful you have to go to the dentist."

According to the U.S. Census Bureau, 49 percent of all businesses in the United States are home-based. Small businesses are responsible for 39 percent of the GNP, and more than half of all sales in the United States are from small businesses, according to the Department of Commerce.

That leaves a lot of small and home-based business owners with many decisions to make. Is it time to hire? What position should I hire? Should I use temporary employees? How much do I pay?

The best advice from the experts: Get help to complement your weaknesses and hire when you spend more time tinkering with your business than planning for the future.

"I knew it was time to hire someone because I was spending more time working in the business than working on the business," said business coach Leanne Hoagland-Smith.

The most common jobs home businesses need help with include accounting, marketing, legal, and general office help. Hoagland-Smith said most business owners have no problem hiring an accountant or a lawyer when they get in over their heads, but balk when it comes to marketing or everyday help.

"The message I give my clients is you don't have to go it alone," said Hoagland-Smith, who works in the Indianapolis area. Her advice? Create a strategic plan and rely on it to dictate all future expansion.

Most business owners — big and small — skimp on their strategic plan, she said, which is both dangerous and ridiculous. "Most people put more time into making a grocery list than a business plan. They get overwhelmed. They have no plan."

Dave Scharp started Prodo Laboratories Inc., a biotechnology company in Irvine, Calif., last fall. After a few weeks, he knew he needed help with the financial and legal side of the business. "I'm a scientist, not a businessman," he said. He contracted the services of an attorney and an accountant.

A few weeks later, he spent too much time in the lab and realized he was stuck. "It was too much for me. I'm trying to grow the business and I couldn't. I needed help." Scharp hired a part-time research technician, and his business, which focuses on diabetes research, moved forward. He now has five employees and the business is still growing.

Morland said he sees it all the time — business owners who want to do it all and are reluctant to give up any control. His advice: Be humble, but smart. Know what you need and think about the future of your business.

Invitation designer Kristy McTaggart tried to handle all the creative aspects of her business, artifice.com, until her business started suffering. She didn't want to hire someone who would skimp on the precision that made her business unique.

"I burnt out doing all the work myself," she said. "It was to the point where I was unable to meet my customers' expectations."

McTaggart finally relented. She wrote a job description, advertised, and interviewed a few candidates. She hired an older worker, negotiated wages and benefits herself, and is now much happier.

The best advice for hiring an employee is to determine your needs. Most small business owners agree that hiring temporary or contract workers for accounting and legal services is a feasible option as long as you don't break the law.

"Bringing someone in as an independent contractor is a deep trap some people fall into," said Morland. "As long as you don't do it as a way to avoid payroll taxes, they can work."

Before deciding on a part- or full-time worker, be sure you have a consistent, year-round need. "The worse thing you can do is hire someone and you don't have the work — or the money — to make it happen," said Hoagland-Smith.

Once you know what you need, write a job description, get referrals, screen your applicants — including background checks — and interview all candidates before making a decision.

In today's technology-driven world, many business owners rely on virtual assistants to help with everyday tasks from accounting to scheduling. The services are provided through the Internet, and rates range from $35 to $100 per hour, depending on the task.

"They may not need a full-time, or even a part-time employee, so they hire a virtual assistant, and they only pay for what they need and they get highly experienced professional help," said Sue Kramer, marketing director for the International Virtual Assistants Association.

If experts had one hiring suggestion for small business owners, it would be to get some marketing help. "The inability to sell themselves is the No. 1 reason most businesses fail," Hoagland-Smith said.

SCORE's Morland said it is frustrating to watch many great businesses die because their owners are stubborn.

"Most people who start a company don't have great people management skills. They want complete control," Morland said. "But each business reaches a point where the owner realizes he can't go any deeper with the skills he has. It is time for help."