I see what you're saying, but at some point you have to reach a point where all the work is getting done, and any additional workers would just lessen the workload of everyone, but not increase the product. For example if a company of four people has 100 things to do per day, than they do 25 things each. However if you hire someone else, no matter what there skill level, the workload is going to be lessened to 20 things per person, but you are still only going to get 100 things done today. I guess it depends on your business, but in my experience, most companies can not simply create more work without gaining more clients or changing the business plan around. It's a fine line, but I think you have to have a need for more employees before deciding to hire one.
Tom | Homepage | 01.28.07 - 9:24 pm | #

Tom,

I agree. I understand your point Adam, but most people I learned from always taught me "only hire when you're bursting at the seams". Now, I'm not usually one to follow conventional wisdom, but I've found that advice to be true. Labor is a business' largest expense. You have to be careful with when & who you hire, otherwise you'll find yourself bleeding cash that you could be saving and/or using more strategically.
Anthony | 01.28.07 - 9:41 pm | #

Thanks for the comments guys - I think you guys are missing my pt a bit. I'm not saying you should always hire everytime you meet someone you like. I was working under the assumption that you are stable and profitable, and that you (as most businesses do) had processes that could serve to be improved. I know I have things that I need automated or streamlined, that would reduce my 100 things/day that I need to get done down to 80. I don't do it now because I have more immediate things to pay attention to. If I met someone that could do that or could take other work off my hands so I could do that(and I'm profitable and stable so I have some cash) I'll always pull the trigger because that will make me more efficient and positively impact my bottom line in the not to distant future. I find it hard to believe that there is any business out there that plans to grow that doesn't have a ton of extra work to be done. All I'm saying is that if the right person comes along for the right price (also an important factor), you'd be crazy not to hire...as a growing business it seems like you always have a need for more work to get done and therefore always should be looking for the right people.
Adam | 01.29.07 - 6:42 pm | #