Hiring first employee

A small business should consider hiring any new employee when the current staff can't meet customer demands and/or other business requirements. Another indication is when the demands on the time and skills of management dictate the need to delegate certain tasks.

When deciding to hire your first employee, it's important to remember that this step brings some important obligations to the business enterprise. When hiring, you're making a commitment to meet a regular payroll. This means that you must have either the cash flow from sales or a financial reserve sufficient to meet the payroll and related payroll expenses, including payroll tax obligations, for the foreseeable future.