The Biggest Hiring Mistakes That Business Owners Make

I want to tell you a story that I see happen all the time in my line of work. As an accountant, my team and I are privy to the inner workings of a lot of small businesses, and I can tell you with confidence that the transition from small mom and pop business to real financial success requires an excellent team.

Every day I speak with business owners who started their company with the people closest to them. Their parents lent them money, their sister who was good at math in high school becomes their bookkeeper, and their best friend who worked at the local grocery store becomes the Director of Sales. It’s completely natural and not surprising, but it always throws a wrench in their business development down the line. For a couple of years, this company does well and experiences some success. The owner can pay back her parents, and eventually, she ends up in my office needing help to take the operation to the next level. She needs a full-time bookkeeper, a marketing expert, and a sales team with a lot of experience. Her company is only as good as the people she has on her team.

This is not to say that I don’t support the hiring of well-meaning family and friends, I do. I have very talented friends and family working for me. However, it’s important to have a clear sense of what it’s going to take for your business to grow to the next level. 

The people that you hire into your company should meet at least two criteria. First, they should fit the culture of your organization. If you run a tight ship with lots of regulations and strict deadlines you need to make sure that whoever you hire can adhere to that style of work. Whatever your professional style is, look to hire people whose styles compliment that. Second, you must hire people who bring things to the table that you can't. Small business owners too often get caught in the habit of running every aspect of their businesses. Does this sound familiar? You’re the buyer, sales team, the entire C-Suite, and the janitor. If you have any hope of expanding you have to begin hiring people who can take some of those roles and do them better than you can. 

Hires like these cost money, but they also make you money. Asking your sister to do your taxes has probably cost you more money than it needs to. Not because she isn’t smart or well-intentioned, because she isn’t an expert. There is a saying that you are a combination of the 5 people you spend the most time with, and I believe that to be true. In the same way, your business is a combination of the people you bring on to your team. If you want a thriving business you have to hire the right people for the job. 

We know you may not be able to hire all the people you need right this moment. That’s why we offer bookkeeping and Virtual CFO services so leaders who are guiding their businesses can have professional financial advice at a fraction of the price. Contact us today to learn more.