Fact: You’ll Hire Three Times For The Same Role
Iterations of the Role
Another factor that most small business owners don’t take into account when making the decision of whether to make a hire, and specifically a financial hire, is the fact that you will likely have to go through the costs of hiring for the role three times. Let me explain.
- Build: The first hire is to find someone who can fill the role in your early stages and help you build your business.
- Scale: The second hire for the role allows you to find someone suited to help scale your business.
- Exit: The third hire is to find someone to fill the role during your business’s eventual exit.
The fact you’ll hire three times for the role is often overlooked, most business owners don’t realize how rare it is for a hire to be able to perform well during even two of the three phases addressed above. While the cost of keeping someone in a role they are unsuited for is high, it is also very costly to keep cycling through people to make these three hires successfully.
It is crucial to understand that once you hire for one role, all the costs of that hire are often tripled. One alternative is to minimize these costs by using an external support team (which I’ll discuss in depth in my next email).
Because Nomad Financial works at on at-need basis our team can perform the functions of these roles at a fraction of the cost, and if you haven’t considered using a part-time CFO before I really think it’s something worth exploring, particularly if you are unsure whether you actually have the workload to make hiring full time internally a smart financial decision.