Small Business Hiring in Tight Economic Times

While the overall American economy is experiencing tight times, small businesses are still growing and fulfilling customer needs. Small business owners needing to hire more employees can follow US Business Finance Corp’s HR guidelines for small businesses for hiring wisely to support company growth in tight economic situations.

• Hire for critical full-time jobs that need to be filled and consider outside contractors for part-time crucial jobs, such as payroll and computer services.
• Hire expertise for the areas that are not your strengths. When hiring for positions demanding a level of trust, such as in accounting areas, references are imperative. Use of outside audits helps you keep tabs on the finances if accounting is not your expertise.
• See your employees as investments in the revenue-producing aspects of your company. US Business Finance Corp has noticed that team players who bring in a consistent level of sales help build a stable revenue stream. Banks and lending institutions look for that stability when considering your company for a small business loan or a line of credit. Lead your business growth with growth in sales and invest in back office support in order to keep up with the demand created by sales. This can help your company steer clear of becoming a top-heavy in areas that are not creating  or fulfilling sales.
• Be willing to pay for experience. Hiring to keep payroll expenses down may cost the company in the long run. Inexperienced employees tend to make more mistakes and fail to weigh situations with customers with the same expertise that practiced and skilled employees do. Experience in key positions is also necessary to show financial institutions when applying for commercial financing that your company is ready to weather the regular ups and downs of the business world.
• Integrate a replacement plan as part of your business growth plans – whether through training promising employees to “rise through the ranks” or building a good relationship with employee hiring firms.

Tight economies do not necessarily dictate a freeze on hiring, but they do direct business owners to maximize their hiring skills to leverage the new employee’s ability to improve a businesses performance in the marketplace. Your hiring practices can also help position your company long range for better financing as well as better growth.

US Business Finance Corp specializes in helping entrepreneurs successfully start and grow their small businesses with a wide array of residential and commercial mortgage packages, business capital advances and merchant credit card accounts. Contact us if you would like to see what traditional and alternative financing solutions we have to offer for your small business.

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Filed under: Business Finance 101, Management and HR, Money Matters - Business, Your New Business