This episode dives into HIRING. When I chose to hire and why, as well as what dollar figures I had as a target before I made the jump to hire.
Hiring is perhaps the scariest part I've come across as a small business owner. As a new electrical contractor I always thought there was some secret formula, or a "quant" figure that would show the math behind when I should hire. After doing this awhile I realized that's not always the case.
I knew what the dollars looked like, rather what I thought they SHOULD look like, before hiring a full time employee. I had my mind set on $10,000 in the bank. In comes Colten. I decided to hire Colten once I saw that 10,000 in the bank but boy was it a rough time up until that point. Working on your own, by yourself, in this trade is a very difficult thing to sustain. When I started out I very quickly became far busier than I thought I would be, so I knew I needed help fast. So for the first hire I just made the leap when the money looked good and the timing felt right.
For me the $10,000 figure worked out. It wasn't based off of a set time/expendature ratio or anything smart. $10k just seemed like a responsible amount to have laying around in the event of an emergency. My goal is to have $15,000 in the bank and hire a green helper soon. This way my 3rd year helper can start training someone which will in turn skyrocket his own knowledge. (Actually I already did this after the time of this recording - if you want to hear that listen to Episode 8 or watch it on YouTube by clicking here: Episode 8 - MID MAY UPDATE (Rentals, Facebook Ads, Organization, and Hiring)
My next goal is to have 6 months of all expenses saved up (including a Journeyman's Wages for that 6 months) before hiring on a full time Journeyman Electrician. Hopefully this will happen around the first of 2018. This way I've got a good established crew with nearly a year together, so it will be a good transition into having a journeyman that can help lead the team.
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