What Staffing Do You Need to Start a Business?

What Staffing Do You Need to Start a Business?
  • Opening Intro -

    If you're planning to start a new business, you're in good company.

    Hundreds of thousands of new businesses launch every year from the freelancer who works at home to the Silicon Valley start up which aims to become the next Google, Microsoft, or Oracle.


Now that Charles Phillips Oracle former co-President has transitioned over as CEO of Infor, we can follow his example and see how he develops and expands his new company. Depending on the size of your enterprise, you may need to hire staff to handle some of the responsibilities associated with running your business. In times past, you would have hired a permanent employee, but today your options are broader and include the following three options.

1. Temporary Employees

Before hiring your first employee, will you have enough work for them to do on a daily basis? If you’re not sure, consider working with a temporary agency to find someone who can do the work for you for a limited time. You’ll pay a flat hourly fee for this service with the temp agency paying the employee. A qualified temp worker is a good way for you to gauge demand for your work as well as offering a try out period for the employee. Many agencies will allow you to hire their employee after a certain number of weeks or months have passed. Contact temp agencies in your area to find out what they can do for you and the fees charged for these services.

2. Virtual Employees

Sometimes known as freelancers, a virtual employee is someone who works for him or herself, offering their services to you on an as needed basis. Small businesses who are looking for people to full positions on a temporary basis or who have no need to have employees work on site, often will turn to Craigslist, Elance, and Guru to find qualified employees. Just as you would do with hiring a temporary employee, you can gauge the skills of a virtual employee without any obligation to keep this person for the long term. You pay an agreed upon rate for their services while they handle all of their own costs including health coverage and vacation. Explore the previously mentioned online sites to find your virtual employee.

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3. Permanent Employees

Beyond launching a sole proprietorship, you may find that you need several employees to help you manage your new business. If you are well capitalized and anticipate enough revenue coming in over the months ahead, you may find it beneficial to have enough people on hand to help you get off to a successful start. Anticipate how much new business you expect over the first six months and who will handle the work. You may need to hire a receptionist who can also answer the phone, an accountant to manage receivables and payables, sales staff, maintenance crew, customer service, and other workers. Consider starting off small, adding employees as you go along. Work with a small business accountant who can help you project your costs. Payroll is a huge expense, you don’t want to hire people without having the ability to pay them.

Economic Considerations

In today’s economic climate, much caution must be demonstrated when bringing any onboard. You not only want to have the resources available to keep your workers busy, you also want to avoid painful and costly terminations if things do not work out according to plan.

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About Author

Matthew C. Keegan

Matt Keegan is a freelance writer and editor as well as publisher of "Matt's Musings", his personal blog. Matt covers campus, consumer, business and financial topics on various websites and blogs, and has been published in the "Houston Chronicle", "Sam's Club Magazine" and "Wisconsin Golfer".