Are you ready to hire? Here’s how to know.

Hiring your first employee is one of the biggest milestones in any business journey. It’s exciting—but it also comes with responsibility. Bringing someone into your business is more than just creating a job; it’s about building the foundation for sustainable growth.

So, how do you know if you’re ready? Here’s what you need to consider—financially, operationally, and personally.

1. Financial readiness: Can you afford it—really?

Hiring someone isn’t just about a monthly salary. There are several additional costs to account for:

What to include in your budget:

1. Gross salary (as per national minimum wage or higher)

2. UIF contributions (1% from the employee and 1% from you)

3. Skills Development Levy (1% of payroll, if applicable)

4. Paid leave, sick leave, and public holidays

5. Onboarding costs (equipment, training time, admin)

6. Tools and systems they’ll need (laptop, software, uniforms, etc.)

Tip: A good rule of thumb is to have at least 3–6 months of salary reserves set aside before hiring, especially if your cash flow is still stabilising.

2. Workload capacity: Is there enough work to justify a hire?

Hiring too early can drain your resources. Hiring too late can burn you out. Ask yourself:

1. Are you consistently turning down work or missing opportunities because you don’t have the time?

2. Are you spending hours on admin or tasks that someone else could do—while neglecting strategic growth?

3. Would bringing in help allow you to increase your revenue or client base?

If the answer to these is yes, it may be time to scale your team.

3. Systems and structure: Do you have the basics in place?

Before you hire, make sure you’ve covered your legal and operational bases. This includes:

1. A written employment contract

2. A clear job description outlining duties and expectations

3. UIF registration with the Department of Employment and Labour

4. HR documents such as leave policies, onboarding checklists, and codes of conduct

You can find all of these templates (and more) on SimplyBiz:

👉 Download free HR Templates here https://simplybiz.zendesk.com/hc/en-us/categories/360001217771-Templates

4. Leadership readiness: Are you ready to be a boss?

Being the boss means more than giving orders—it’s about supporting, guiding, and being legally and morally responsible for someone’s livelihood.

Ask yourself:

1. Am I ready to manage and motivate someone else?

2. Do I know how to give constructive feedback?

3. Am I prepared to handle conflict or underperformance professionally?

4. Can I create a safe, respectful, and empowering workplace?

If you’re unsure, consider investing in a short leadership course or exploring SimplyBiz’s People Management resources for guidance here https://simplybiz.zendesk.com/hc/en-us/sections/360003006412/

5. Start small and grow smart

If you’re still nervous, start by hiring part-time, freelance, or contract staff. This gives you flexibility while you test how having help impacts your business. Over time, you can scale up as your revenue and confidence grow.

Final thoughts: Hiring is an investment, not just a cost

When done at the right time, hiring can boost productivity, reduce burnout, and open up new opportunities. But rushing into it without preparation can lead to financial strain and unnecessary stress.

Take the time to assess your readiness and set your future team up for success, right from the start.