When your business has grown to the point when you’re ready to take on new people, you essentially have two choices:

  1. Become an employer
  2. Take on subcontractors.

It’s important to note at this point, that you do NOT need to become a limited company to employ staff, but you do need to register the change with His Majesty’s Revenue and Customs (HMRC).

Get your business ready for an employee or subcontractor

I’m making the assumption that since your business is ready to scale, you have systemised processes in place. Now is the time to look at those processes and ensure they are ready to be shared by another person who is new to your business.

  • Are there enough processes in place?
  • Can they be easily followed by a fresh pair of eyes?
  • Can the processes be modified by your employee or subcontractor?
  • Are you available to train and guide your employee or subcontractor?
  • How will you measure performance against the process?

If you don’t have processes in place, you are now presented with the opportunity to not only write up the priority tasks but delegate some responsibility to your employee to complete the ‘process file’.

Becoming a manager for the first time

Regardless of whether you choose to employ or subcontract extra help, you have the same actions to take:

  • Register with HMRC as an employer
  • Decide whether you’ll need an office, coworking space or remote conferencing communications
  • Decide what ‘perks’ can be offered and what career progression opportunities are available
  • Write up the job description, expectations and reward
  • How many hours and what length of contract can you offer?
  • How much can you pay them?
  • Write up the contract and get it checked with an HR professional for legality (or written by them)
  • Get employer’s liability insurance (for employees and labour only subcontractors)
  • Set up and manage a workplace pension scheme (for employees only)
  • Provide guidelines on work culture
  • Engage with an HR professional to find out what work-place manuals and guides need to be written
  • Engage with your accountant for payroll and taxation advice.

The key difference when becoming a manager is that you are moving away from being the implementor and becoming responsible for the activities of another person in your business. I would recommend Michael E Gerber’s E-Myth Manager at this point. ‘It explores why every manager must take charge of their own life, reconcile their own personal vision with that of the organization, and develop an entrepreneurial mind-set to achieve true success.’

Ask for help

Moving to manager is a huge topic. I hope I’ve covered the basic considerations and actions in this article, but there is much more to take into account, such as business culture, developing your team, speed of growth, and experiencing doubt over your decisions.

I’ve included some links below to further assist you in becoming a manager, but if you prefer real conversations, I offer an hour of free business mentoring where we can cover all of the above, tailored to your specific requirements.

Useful links:

Implementing Systemised Processes In Business

Doubting a Business Decision

Register as an Employer with HMRC

Michael E Gerber the E Myth – Manager

(Visited 57 times, 1 visits today)