Mentorship Monday: When to Hire Your First Employee
December 29, 2025
5 min read
# When to Hire Your First Employee
The question I get asked most often: "How do I know when I'm ready to hire?"
Let me share the framework I use with my consulting clients.
## The Signs You're Ready
### Financial Indicators
- Consistent revenue for 6+ months
- Enough work to justify 20+ hours/week for someone else
- Cash reserves to cover 3 months of salary
- Clear ROI on the hire (they'll generate or save more than they cost)
### Operational Indicators
- You're turning down work due to capacity
- Quality is slipping because you're stretched thin
- You're spending time on tasks below your pay grade
- Growth has plateaued despite demand
### Personal Indicators
- You're burned out and it's affecting your health
- You've lost the joy in your business
- You can't take time off without things falling apart
## The Hiring Framework
### Step 1: Define the Role Clearly
Before posting a job, answer these questions:
- What specific outcomes will this person be responsible for?
- What does success look like in 30, 60, 90 days?
- What skills are required vs. trainable?
### Step 2: Start with Part-Time or Contract
Test the waters before committing to full-time. This gives you flexibility and reduces risk.
### Step 3: Hire for Attitude, Train for Skill
Skills can be taught. Work ethic, reliability, and cultural fit cannot.
## Common Mistakes to Avoid
1. **Hiring too fast**: Desperation leads to bad hires
2. **Hiring a mini-me**: You need someone who complements your weaknesses
3. **Not having systems**: Your new hire needs clear processes to follow
4. **Micromanaging**: If you can't trust them, you hired wrong
## Your First Hire Checklist
Before you post that job listing, make sure you have:
- [ ] Written job description with clear outcomes
- [ ] Documented processes for their key tasks
- [ ] Budget for salary, taxes, and onboarding
- [ ] Time to train and manage them properly
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*Thinking about your first hire? [Apply for Strategic Consulting](/apply) and let's build a hiring plan together.*

