When I decided to really grow my Bookkeeping Practice, I was quickly faced with the question of hiring staff. I knew I couldn’t continue to take on clients and do all the work myself.
I had tried to move into more consulting and training services but kept getting asked to do more and more bookkeeping. It was a shame to continually say no.
I was getting bogged down in the processing of existing clients and the time restraints of compliance. I enjoyed the work, but really wanted to move to higher end work. It was really frustrating me.
The reality was, if I wanted to grow my Bookkeeping Practice, I needed to overcome the fear of stepping off the cliff and start hiring staff!
What is low value work costing your Bookkeeping Practice?
I spoke with a mentor and he asked me what the “opportunity cost” was of me continuing to do the data processing and admin work.
For example, if I was charging $60 per hour for data processing, and I could charge $100 per hour for training and consulting, then the “opportunity cost” for me to do work I could delegate to others was $40 per hour!
By keeping the work and not hiring staff, I was actually costing my business up to $800 per week, based on an average of 20 chargeable hours I could invoice per week! Insanity!
Continuing with the maths, if I was hiring staff at $25 per hour and charged out at $60 per hour, I could make a profit of approximately $35 per hour!
In addition, I could also use the time freed up to charge out my own time at $100 per hour for higher end work!
Now this is a very simplistic view given there is training time, staff will be initially slower, they will ask a lot of questions, etc. I am sure you, like me, have come up with many excuses to avoid engaging staff!
But the maths simply cannot be denied!
The common doubts about hiring staff
At the time the doubts I had about hiring staff included:
- I will have to find time to train them & answer their queries – I may as well just do it myself
- Will the client be ok with their work being done by others?
- Can I trust staff with my client’s information?
- Will the staff steal my clients and my intellectual property?
- Where will they work and how will I know they are working?
- What should I pay them?
- Where will I find good staff?
- Do I want to share my work and clients?
- What would I hand over to staff?
- Who do I need?
It is very common to have these thoughts. But consider this - what if you didn’t employ staff?
What would happen to:
- Your business
- Your working life
- Home life
- And possibly your health
if you don’t engage help?
What will happen to your Bookkeeping Practice if you don’t hire staff?
Can you continue the way you are currently working? Is it sustainable for the long-term? Will you be able to grow your Bookkeeping Practice?
If you are still unsure, I suggest you ask yourself these questions to come closer to making a decision:
- Are you already working to 90+% of your capacity – you know you only have so many hours in a day
- Are you turning away work?
- Are you wanting to move into higher end work? (by that I mean higher paid work)
- Are you wanting to grow your business?
- Are you dissatisfied with what you are earning?
- Would you like to offer your clients more customer service?
- Would you like to sell your business for its maximum worth? (when you are ready to sell)
If you answered Yes to many of these questions, then hiring staff is going to be a reality you may not be able escape!
I understand the anguish in making the decision to hire staff. I get it! But let me tell you when I made the decision and engaged staff, I never looked back. It was the best thing I could have done!
What are the benefits of hiring staff?
Once the decision is made (which is often the hardest thing in this whole process) you can enjoy the benefits:
- The ability to hand over tasks you do not need to do personally
- Work on tasks you want to do
- Find time to work on your business and improve your systems
- Grow your business
- Give your existing clients a fuller experience
- Possibly offer new services if you employ someone with different skills to you
- Be able to take holidays or just some mental health days
- Be able to discuss things with someone that gets our industry
- Build an asset with a higher sale value
- And so much more
Hire the right staff and accelerate your growth!
Of course, you will hear of some horror stories, but if you do some homework before you jump in and not just employ the first person looking for a job, you can have a successful experience.
If you have been in a state of indecision around whether to hire staff, I suggest you work through the exercise of what it is costing you to stay as you are.
Ask yourself the series of questions outlined in this post to really know whether you do want to grow your business, or if you are happy to simply continue what you are doing.
At some point every Bookkeeping Practice reaches a point where it needs to start hiring staff if it’s full potential is to be realised.
You can avoid many of the pitfalls associated with hiring staff and learn how to create a successful business by signing up to our affordable, and powerful, Bookkeeping Business Mastery Course
Alternatively book a time here to find out how this Course can accelerate your business success!