Your company is on an upward trajectory. Congratulations! Now that you’re growing you may be faced with many choices. Should you hire? Should you move to a different location? Do you need to invest in new equipment? All of these are certainly signs of growth and can lead to growing pains, but you need to look at your budget and make any investments and moves wisely.
Entrepreneurs: Should You Buy Or Rent?
Here are three items that an entrepreneur may want to look at when he or she is thinking “buy or rent“:
- Employees. Should you hire employees or employ contractors? Remember, with employees come employee taxes and other tax ramifications. There are benefits and drawbacks and challenges to either employees or contractors. Talk with your accountant or accounting department to fully understand the cost of an employee to a business — remember, it’s more than just the hourly rate. Then decide which fits best in your corporate culture. Do you have space for employees? If you had to move to a larger space and then had to hire employees, you will be looking at a big hit on your budget, can you truly afford and sustain those costs? Are you better-served to hire a professional who can perform the tasks you need but who will be an independent contractor who will work at his or her own site and use his or her own equipment. Oh yes, don’t forget, if you hire you need to invest in equipment for the employee.
- Do you need to rent an office space or will your current space suffice? If you’re continually meeting potential clients at a local coffee shop and want to amp up your image, you may need, or want, to invest in renting office space. If you meet customers virtually, your home office may remain the ideal (and most cost effective) option.
- Does your business need more equipment, software or upgraded technology? If you’re in a growth spurt that appears to be one that will continue, you may need to upgrade and update equipment. Again, this is a conversation to have with your accounting professional who can help you make that decision. It doesn’t make sense, though to operate your business on outdated and continually breaking down technology or software that just doesn’t meet your needs.
Congratulations on your growth! Do it wisely and with forethought and may the trend continue! If you’re an entrepreneur in the midst of a growth spurt but are struggling to get to that next level, contact us and inquire about how coaching might help push you past your barriers.