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Partner Spotlight: AZ Business Solutions From the April 2007 issue of Channelpro Magazine, by Alexander Ziogas
Smart Growth - Peer to Peer Virtually every successful sole proprietor reaches a point where he or she must decide whether to hire that first employee. It is a decision that can transform every aspect of your business, from where you work to the type of services you offer. And it shold be preceded by serious thought, planning and soul-searching. FIRST, ASK "WHY?"
Before you hire, it's important to ask yourself "why?" What do you expect to gain by going to the next level? Money? Freedom? The ability to eventually sell your business? The answer to this basic question will help you decide whether - and how - to proceed. If you are not looking to make more money, take more time away from your business, or create an exit strategy, by all means remain a sole proprietor. You may be limiting your opportunities, but you will also avoid taking a step that is outside your comfort zone - and that could have detrimental consequences for your business. If you do choose to expand, begin by developing a business plan that will serve as a roadmap toward your goals. It should include a clear vision of your business strategy, your market, your financial projections, and your exit strategy. BECOMING AN EMPLOYER
Being an employer is vastly different from being a sucessful consultant. So before you call in your first candidate, prepare for the changes and responsibilities that lie ahead. Start by assessing your interviewing skills. If you don't know how to conduct an effective interview, outsource the initial screening process to a qualified third party - whether a friend, family member, or even a client's HR department. Of course, the ultimate decision about who to hire should remain yours. Next, prepare detailed job descriptions for each new employee, and provide clear metrics by which their performance will be measured. Above all, manage your own expectations. Don't expect your new hires to be billable in their first or second months on the job. You'll need to guide them through the ins and outs of interacting with clients. I speak from experience. After my first two hires, I lost nearly 40 percent of my business because I failed to give my people the proper training in client communications, and I didn't prepare my clients for the transition to working with people other than me. As training new hires takes time, wise entrepreneurs establish a line of credit equivalent to one year of each employees salary. This will help you maintain cash flow while new staff members get up to speed. DELEGATE MANAGEMENT
As you ramp p to four or more employees, don't make the mistake of having every employee report directly to you - which is a full-time job unto itself. Instead, hire or train a manager, and establish a multilayered reporting structure taht ensures accountability at every level. The transition from sole proprietor to entrepreneur is not for everyone. But in my experience, it has meant greater freedom, increased earning power, and the satisfaction of building a business that will eventually function without me. And for me, that makes it well worth the effort. 
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