Starting a small business requires passion and, of course, endless hours of hard work. Indeed, that’s too exciting! However, sooner or later, one should make tough choices, especially when it comes to hiring staff. In this situation, one question becomes inevitable – “Who should I hire first?”

Remember, the right team members can accelerate your growth and position your firm for long-term success. But hiring too quickly or in the wrong order can drain resources and stall progress.

It is when businesses often turn to a trusted CPA firm in California to ease their burden and drive revenue.

In this guide, let’s walk you through a strategic approach to building your team step by step. Go through the tips mentioned here and learn how a CPA-backed guide can help you decide who to hire first.

A Strategic Guide to Hire Staff for Your Small Business

1. Get your finances in order: Before making choices regarding who to hire, your first job is to determine whether your business can afford to hire. Hiring an employee involves more than just their salary. It also includes – payroll taxes, employee benefits, recruitment and onboarding expenses, training, and compliance costs. Many small businesses often overlook this, leading to cash flow issues and operational strain.

To avoid these consequences, it’s good to work with a CPA who can help with evaluating your budget, forecasting labor costs, and planning for sustainable growth.

2. Hire for the work you can’t do: Once your finances are in check and you are ready to hire staff, it’s time to make a list of tasks that you fail to do. Your first hire should fall outside your skillset and perform time-consuming work with ease. In other words, the employee should be hired to perform inefficient tasks so that you can focus more on leading, growing, and improving your business.

Some quality roles you may offer here are – administrative or operational support, marketing help, sales, or client relationship manager.

3. Consider contractors or freelancers: Not every role requires a full-time hire. For your small enterprise, you can thus choose contractors or freelancers who are ready to work on your project on a part-time basis.

Some areas for which you may hire them are: Digital marketing, graphic design, IT support, and bookkeeping.

Note: If you are already teaming up with a certified accountant, you don’t need to hire a person responsible for payroll, accounting, and bookkeeping.

4. Don’t overlook compliance and tax obligations: Hiring employees for a California-based enterprise means dealing with payroll, labor laws, workers’ compensation, and tax filings. Avoiding them or getting them wrong can lead to fines and audits.

The best way to meet these legal requirements is to find a trusted CPA who can help new employers stay compliant from the outset. This helps you focus on growing your team, instead of worrying about penalties.

5. Hire strategically: Once you have completed your initial hiring requirements, your next step should be finding someone for growth-driving roles. It can be either a sales representative who can grow your client base, a full-time marketing lead, or a dedicated operations manager to optimize workflows.

Note: Make sure all your hires are aligned with your business goals. Whether you are expanding your business or launching new services or products, it’s crucial to hire strategically.

How to Hire Your First Employee

Here are a few steps to hire your first employee successfully.

• Obtain your EIN: Before embarking on the hiring process, make sure you have an Employee Identification Number (EIN) from the IRS.
• Organize taxes: As an employer, you are responsible for withholding payroll taxes and maintaining accurate records for at least four years. It’s time to familiarize yourself with federal and state tax requirements.
• Business insurance: In California, even if you hire one employee, you should get workers’ compensation insurance. It protects both your business and your staff by covering medical expenses and lost wages in case of a work-related injury or illness.

Wrapping Up

Hiring staff for a company is not just about building a team to operate a business. It is more about laying the foundation for long-term success. Remember, your first few hires can shape your company’s culture, drive growth, and define the direction your business takes in the years ahead.

Are you ready to hire a pool of employees to run your small business? Feel free to contact us. We are not just a CPA firm in California – we help small firms make smart financial decisions and create a hiring plan that aligns with your goals. Connect with Basta & Company to book an appointment today.