When the business idea is first thought up the inclusion of a workforce may not feature into the thought process. However sometime during the course of further considering the business entity some thought should eventually be given to this important platform as it may have a significant impact on the success of the business.
What about people
If the intended home business is comparatively small in nature and ventured into with an experimental frame work in mind the initial commitment of employees may not be immediately needed. In some cases the use of family members and friends would serve just as well.
Using such assistance as family members and friends may help to keep the cost down in the initial stages of the home business. This will be evident in the lower compensation package needed for this form of assistance and also the lesser need for payments such as medical coverage, insurances and others to be made.
Therefore tapping into this may present the individual with a most cost effective start up budget and the savings made can be put towards any future expansion programs. In considering if there is a need for employing staff for the home based business here are some points that should be looked into to help give a better overall perspective to the individual: Ensuring there is a real need for such assistance the individual should then decide just how many hours per week this assistance is needed.
Then categorizing this into part time or full time employment should also be done, this is imperative as it also takes into account the relevant cost incurred will vary depending on the commitments of the intended employees. Considering if the need is temporary or permanent is also another significant decision to make. As most people interested in being hired would want to know this.
Put everything in place for having employees
Most home businesses start out with just the individual working through the business and only when some real money is being made does the person then consider adding on other to assist in the business.
Get Ready
This assistance may come in the form of getting others to operate the business on an expansion platform but from their own premises, but if this is not the case then the individual would have to consider expanding the business premise within his or her own current work space. This could to be rather challenging in some cases but with a little careful planning and thought it can be comfortably achieved.
The following are some tips and areas to consider that ensures the employees stay focused and are comfortable: Keeping the general environment as professional as possible is perhaps one of the key issues that should be dealt with from the very beginning.
Designing a work area that is separate from the hustle and bustle of the surrounding home environment is important. This is the main element to consider as it can be vary distracting for the new employees to have non work related disturbances constantly apparent and present.
Having such distractions can seriously interfere with the level of concentration and commitment the employees put into the work process of the day. With the relevant space being identified and allocated, the next step would be to consider the comforts of the employees.
A comfortable work space will encourage better levels of productivity. Ensuring all the supporting equipment is in place will also help to generate the desired level of work production percentages. If the general budget permits the equipment chosen should not be shared by several employees as this too would eventually affect the efficiency of those working together.
Having to wait around until someone else is finished with the particular piece of equipment would not only be a waste of time and resources, it could also eventually end up frustrating the employee.
Develop an exit strategy
Almost everyone who decides to go into the home business style of earning an income, often forgets to take into consideration the strategies that should be in place should the individual decides to call it quits and close the business.
Though this would seem unimportant and even not needed at the time, it does have an important impact on the individual and the business revenue earned through the course of the business should this end be executed. Therefore it is advised that some consideration should be given to this, and all the necessary mechanisms be put in place at the very beginning of the business plan to ensure a smooth transition process prevails.
When it’s time to go
One way of developing a practical exit strategy from a very profitable ongoing business endeavor without causing the “boat to rock”, is to reward one’s self with huge amount of “goodies” in the form of bonuses, pay checks, special shares or dividends and the likes, regardless of the company’s current performance levels. In doing so, the company will be able to deplete its current healthy revenue reserves and direct them into the coffers of the owner, thus creating a viable and quick exit when the time is right.
Another form often utilized and is not really messy or complicated is the liquidation process. This style is used, when the home business owner has simply decided that enough is enough, and wants to close the business without any fuss. In this scenario the individual would just literally close the doors on the business and after paying off any creditors and other shareholders, putting up the equipment for sale if any, whatever balance left would be considered rightly his or hers.
There would be no or minimal negotiations involved and certainly no lengthy time consuming processes to adhere to. There would also be no need for legalities such as transfer of control or redistribution of shares if the business was solely owned by one individual.
Excerpted from the book Entrepreneur And Employees.
This excerpt has been edited and condensed for clarity.
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