The Growth Blog

Do you have a plan to pay for the cost of your next hire?

Feb 26, 2019 2:13:52 PM / by inFund

As your company starts to grow, to be able to handle any growth, you need quality people working with you. However, as hiring people is expensive, many companies avoid hiring until it becomes absolutely necessary. They only make the change when business activity exceeds capacity. The belief is that once the need is there, they can simply bring in people to meet the capacity. This is based on this idea that hiring people should be a no-cost scenario; you only hire when capacity can handle immediate increase in your expenses.

Let's stop and think about this for a minute.

Currently, the economy is strong, so your business is strong. You are growing, and about ready to move beyond your capacity. You start looking for new employees. You suddenly discover that it is very hard to find people who are qualified. You are growing, which is a good thing, however, you are now having trouble meeting your customers' needs.

The reason why you are having trouble finding people? Many other companies are taking advantage of the business environment, meaning your ideal staff has already been hired by someone else. Now your competition is stronger than you. Your growth suddenly becomes a crisis situation, and you start failing to meet your customer’s demands. Guess what? Your competition has just swooped in and grabbed them too. This is one reason why many companies crash and burn in strong economies.


Your employees are your company

You need to have quality employees before this occurs. As Sir Richard Branson has famously stated, “a company’s employees are its greatest asset and your people are your product.” By having solid and qualified staff in place, you are ready to handle your growth. In fact, by having them on hand, you are already a step ahead of your competition. You are not only likely to be ready when growth occurs, you also have a better selling proposition to increase the likelihood that it will.


Staying afloat while maintaining your staff

Now I hear you cry, “how can I hire people when I'm not making enough money to pay them?” This is a completely understandable concern. Of course you need to pay your quality staff. If you don't they will jump ship before you have a chance to blink.

Obviously, paying them is your first priority (remember what Sir Branson said?). You might be able to afford to do this, however you need whatever capital you have to be able to make sure you have enough inventory on hand. You need to be able to pay for that ad campaign or nobody will be able to tell you exist. Maybe you need that staff to be able to have computers! So how can you handle all of these new expenses?


Seasonal or Project-based staff

Here's another scenario. Maybe your business is doing well, and you have enough people to handle your regular workflow, and can handle modest growth. However, at certain times of the year, your need grows dramatically, but then dries up soon after that. At other times, you may have the need for a contractor to build a simple system for you or to help you re-organise your marketing strategy. However, you are still in a bind. You only have the money after these peak periods. So how do you prepare?

You need to make sure you have the best staff before growth occurs. Even in seasonal economies, you need to be able to bring in temporary employees or contractors to handle these expected growth periods. So what do you do?


Flexible Funding

This is where flexible funding comes into play. As we have discussed in earlier articles, cash flow issues are one of the biggest detriments to your growth. This is as true when you need to hire people as it is for any other part of your business. With flexible funding, you can borrow the money you need to keep your business flowing smoothly. You can confidently hire the people you need without having to worry about having all of your capital tied up elsewhere.

By having a reliable financing partner like InFund, you can get the right boost that you need. You will be provided with a reasonable and manageable payment plan that will enable you to reap the benefits of having the absolutely best staff on hand.

The terms of financing through InFund are completely non-restrictive. When your success appears, you only need to pay for the days that the loan is active. You can simply close the agreement without having to worry about any penalties for early payoff. So why not give it a try? You can start small, and when you see how well it works, we'll be there for you.

Be ready for your greatest success with simple quick financing, with InFund as your partner.

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Topics: Infund blog, funding growth, Investing for growth


Written by inFund

inFund is a loan and credit facility provider supporting SMEs to grow and finance their ambitions.