Hire Your First Employee. Rhonda Abrams

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unemployment may be the very best time to add to your staff.

      More than half of all companies that make up the Fortune 500 or Dow Industrial Average were started in a recession or depression. Statistically speaking, you’ve got a better chance of becoming a huge American corporation by starting in a bad economy.

      Take a look at some of the companies that started or expanded substantially during recessions or depressions: Microsoft, McDonalds, Disney, Hewlett-Packard, Whole Foods, General Electric, Adobe, J.Crew, Intuit, Alcoa, Johnson & Johnson, Procter & Gamble, Applebees, Costco, Chilis, Odwalla, Sara Lee, Sears. The list goes on and on.

       HIRE Learning

       Small Businesses:

      

Generate more than 45 percent of total private payroll

      

Create 60 to 80 percent of new jobs annually

      

Employ half of all private-sector employees

      

Hire 40 percent of all technology workers

       —Small Business Administration

      Yes, it seems counter-intuitive, but it’s actually not a fluke. Bad economic times mean great opportunities for companies willing to expand, be aggressive, and take risks. That’s because you’ll find:

      

Weaker competition. In bad economic times, big companies tighten their belts, cutting back on marketing, new product introductions, research and development, expansion. That makes it a better time for smaller, more aggressive competitors—like you!

      

More flexible customers. In good economies, customers don’t switch providers much. But when times get bad, they look for new, better, cheaper alternatives. They’re far more open to trying new things and new companies.

      

Lower costs and better terms. Suppliers are more willing to deal during bad economies. In fact, in good times, many suppliers won’t even deal with new, small companies.

      

Lower rents. If you need expanded space to accommodate your new employees or launch your new business, you’ll find all types of commercial real estate less expensive—office, retail, warehouse, manufacturing space.

       Debunking Hiring Myths

MYTH	REALITY
Hiring an employee costs too much money.	Your income is limited if you work only by yourself. Hire smart and your new help enables you to make more money.
I must offer employees a whole range of costly benefits.	Legally, the number of benefits you must offer is surprisingly small. However, you’ll probably choose to offer more to get the best employees.
I’ll have to pay payroll taxes as well as salary or wages.	That’s true. Budget for these as you plan. And when legal, you can use independent contractors without paying taxes.
I don’t have enough money saved up to hire full-time employees.	You can start small—hiring part-time workers or contractors.
I don’t have enough space in my office for an employee.	Many businesses can have employees who telecommute at least part of the time.
I’ll spend all my time on paperwork, managing payroll, and figuring taxes.	A wealth of services, like online payroll, help you handle these quickly and easily.
Managing other people will take up too much of my time.	Once you get systems in place, you should have more time for doing work you’re best at.
Employees are lazy, more trouble than they’re worth.	Most people are eager to do a good job. Train them well and manage fairly, and they’ll work hard for you.

       High Unemployment = Lots of Great Prospects

      Frankly, when unemployment is high, it’s a buyer’s market for those hiring. You’ll find better workers, at lower cost, willing to be more flexible.

      Certainly, a job loss is devastating to the people who are laid off. However, this means that some of the most skilled workers are available to help you take your business to the next level. And although it’s awful when recent college graduates can’t find good jobs, that means there are lots of eager, smart, young people you can add to your team.

      Times of high unemployment offers employers:

      

Cheaper labor. Prospects recognize they may have to take lower wages or salaries to get a job.

      

Talented employees. In good times, it’s often hard for small companies to compete against big corporations for the best people. In bad times, even highly talented, experienced employees are willing to work for small companies, or have been laid off from corporate positions, bringing unmatched experience to you.

      

Flexible workers. Job prospects are more willing to work around your needs and schedule, including being more open to part-time work or off-hours.

      

Greater choice of independent contractors. Just as more prospects are willing to work part-time, you’ll find a large pool of talented people willing to work as independent contractors, exploring self-employment or making money until they find another full-time job.

      

Experienced retirees. Recessionary conditions mean many workers accepted “early retirement” packages, while other retirees have seen their retirement savings and investments decline. This means many more experienced workers are looking for part-time or full-time roles to use the skills they’ve gained over a lifetime.

      Even if your dream isn’t to start a multi-billion enterprise, history shows that if large, long-standing corporations can take-off during a challenging economy, your company can too!

Envisioning the Growth of Your Business

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