Should I start to hire more employees?

[Kokaka]

Hi all.
So working with my advanced beauty clinic. I have my partner who work full time and a newly hired nurse who works for percentges. So the only salary I pay out is in relation to the money that is being brought in.
However, we plan to hire one beautician who will work 70% at first and the question is when is the right time to do it?
We opend 1st of february and as of late, we have been fully booked since day 1 and now we have a 2 week waiting list to get a treatment.
The clinic has managed profit of about 20k but alot of it will be reinvested in other machines and products so after all that is done, we will be +/- 0. However the cashflow contine to be high.
The employee will cost about 2k/month but that will be a fixed cost every month.

Does anyone have any tips or experience with hiring staff or when to hire new staff that would be usefull in this situation?
Thanks

 

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[Johnny boy]

I hire people at $17-$21 an hour and here’s my experience.

50% won’t even show up for the interview.

Of the ones that do, about 50% will even seem capable enough to do the job in any capacity whatsoever.

Of the capable ones that show up, only about 30% will stay more than a week or two before no calling no showing and then quitting.

Which brings it to about a 12:1 ratio of interviews scheduled to people who will actually work any period of time for you. And the kicker is that you won’t know which ones will stick around until you actually hire them and time goes on.

In business, 2 is 1 and 1 is none. You need a backup for the backup if the position requires any reliability whatsoever.

 

[Kokaka]

I hire people at $17-$21 an hour and here’s my experience.

50% won’t even show up for the interview.

Of the ones that do, about 50% will even seem capable enough to do the job in any capacity whatsoever.

Of the capable ones that show up, only about 30% will stay more than a week or two before no calling no showing and then quitting.

Which brings it to about a 12:1 ratio of interviews scheduled to people who will actually work any period of time for you. And the kicker is that you won’t know which ones will stick around until you actually hire them and time goes on.

In business, 2 is 1 and 1 is none. You need a backup for the backup if the position requires any reliability whatsoever.

Thanks.
Yes I have heard that hiring people is a hastle.
Hiwever for my current situation. I have an employee ready and the question is only when ia the right time to hire her because it will bring a new expense to this, still very new business

 

[Kid]

when is the right time to hire

I don't think there is such thing as "the right time".
Since you're fully booked you won't bring more revenue than you bring now (unless new equipment equals higher revenue).

If its "new employee vs new equipment" question then calculate what each option brings to your business. Choose the one that will bring more profit earlier.

 

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[Speed112]

Thanks.
Yes I have heard that hiring people is a hastle.
Hiwever for my current situation. I have an employee ready and the question is only when ia the right time to hire her because it will bring a new expense to this, still very new business

Well, apparently you're already over capacity in terms of demand. Is that bottlenecking your growth?

If you hire this new person then you can move the people on the waiting list up and immediately increase your cashflow. That should recover some of the cost. Will it bring immediate profit? Will it require additional investments in new equipment? You're the one who should know these answers.

The thing about employees is that they're just as much capital as your machines or products. Human capital. So you've got to look at them as an investment and compare with your alternatives. You've got to invest your resources into finding the right person, training them, building your relationship with them, etc. You also need redundancy as people aren't completely reliable.

Machines aren't either, so you always need to take into account things like maintenance and replacement.

The right time to hire is whenever you're ready to invest into extra labour.

The RoI might not be immediate.