I've been doing this solo for 2 years now and business is picking up. Currently handling about 40 clients throughout Ohio, mostly small manufacturers and office buildings. I'm turning away work because I can't keep up. At what point did you all decide to bring on help? Looking at maybe $180K gross revenue this year if I could handle all the leads coming in. Any thoughts on hiring part-time vs full-time first employee?
When to hire your first employee?
Jim, I made that jump at about $150K gross. Hired a part-timer first - recent accounting grad who could handle the data entry and basic bill reviews. Let me focus on the complex stuff and client development. Best decision I made. You're definitely at the right revenue level to support it. Just make sure you have solid processes documented before you bring anyone on.
Similar situation here in Charlotte. I waited too long and burned out trying to do everything myself. When I finally hired someone, my revenue jumped 40% in six months because I could take on bigger clients. Duke Energy has some complex rate structures that need experienced eyes, but the basic stuff can definitely be delegated.
One thing to consider - make sure you have good systems in place first. I made the mistake of hiring before I had documented processes. Spent more time training and fixing mistakes than I saved. Now I have detailed checklists for every type of audit we do. New hires can be productive much faster.
Jim, are you thinking admin help or someone who can actually do audits? I started with admin support and that freed up probably 10 hours a week. Then moved to hiring someone with utility experience. LG&E has been great about working with my team when we have questions about their billing systems.
Thanks everyone. I'm thinking admin support first - someone to handle the initial data gathering, basic calculations, client communication. I have pretty good processes documented already. Frank, how did you structure the pay for your first hire? Hourly or salary?
Started hourly at $18/hour, 25 hours per week. After six months bumped to $22 and 30 hours. She's been with me three years now and handles probably 60% of our routine work. Worth every penny. The key is finding someone detail-oriented who understands the importance of accuracy.
I'll second what everyone said about having systems ready. Also consider the legal stuff - worker's comp, liability insurance adjustments, tax implications. Made the leap last year and it was the best decision for my business. Now handling twice as many clients and actually have evenings free again!