We recently hired a new team member to support our tax team, which means Little Fish is finally fully staffed! It took us almost 6 years to get there so we've learned a few lessons along the way about the financial considerations of building a team
🌱 Start by Identifying the Roles That Will Most Impact the Bottom Line
Before diving into hiring, it’s crucial to determine which roles will have the greatest impact on your business’s financial health. Focus on the positions that will drive revenue, improve efficiency, or reduce costs. You want to ensure you’re investing in the right places and getting the most bang for your buck. By strategically filling these high-impact roles first, you’ll maximize the return on your investment and set your business up for stronger financial success.
🌱 Hire Before You’re Financially Ready…
One of the most common questions we get from clients is, “How do I know I can afford to hire?” Early on, we struggled with this too. It’s not just about understanding the immediate financial impact of a new hire, but also recognizing the opportunity cost of not hiring. Consider how much revenue you might be losing, how you could better utilize time, and the peace of mind you gain by fully staffing your team. Having a waitlist showed us that demand was outstripping our capacity, which was a clear financial indicator that we needed more hands on deck. Waiting for the “perfect” financial moment to hire only prolonged the strain on our resources.
💰…But Financially Prepare for It
Onboarding a new person comes with an increase in financial costs. From expert advice like HR support to potential expenses like registering and operating in a new state, bringing on a new team member can strain your budget. We learned the hard way that you need to forecast not just the immediate costs but also the ongoing financial implications. Ensure you have a financial cushion for unexpected needs and expenses. Build in any expectations of additional revenue the new hire might generate, and make sure you know when you’ll have enough cash flow to cover their salary. Saving as much as possible beforehand helped us avoid financial stress during the onboarding process.
💡 Financial Preparedness Brings Peace of Mind and Drives Success
When you’re financially prepared for hiring, the peace of mind it brings is invaluable. Knowing that you’ve accounted for all costs and have a cushion for unexpected expenses allows you to focus on growth rather than worry about cash flow. This financial stability enables you to onboard new team members more confidently, leading to increased efficiency and higher-quality work. As a result, your clients benefit from a better experience, which in turn drives more revenue and fosters long-term success. Financial preparedness ensures that every hire is a step forward for your business, not a source of stress.
We have a podcast episode on being a solopreneur versus building a team – check it out HERE.
👋🏾 We’re Little Fish Accounting, a firm that goes beyond the numbers to provide concierge-level care. Our advisory services enables our clients to make strategic decisions for their business, achieving big results with small teams. Interested in learning more? Check out our suite of service offerings.
We also have a podcast, Build to Enough, where we explore practices for sustainably building a business that is aligned with your purpose and values. Let us help you to redefine what success looks like. For more, check out our services below.
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