small business ownership; entrepreneurship; from self-employed to business owner; Susan Elizabeth Ball; Susan E Ball; Honoring God with Your Money; solopreneurship

Technically, self-employed individuals are considered small business owners. However, the term “self-employed” typically refers to individuals who independently earn a living based on their skills or efforts alone, without relying on employees or contractors

Many types of businesses naturally lend themselves to self-employment:

Skilled trades like plumbing, electrical work, and HVAC
Services such as landscaping, painting, and power washing
Professions like accounting, bookkeeping, and marketing consulting
Creative fields including artists, photography, interior design, and graphic design

Transitioning from Solo Work to Growing Your Business

Many of my clients start their businesses to pursue their passions or meet community needs. Those who excel in their work and effectively market their services often face the challenge of managing increasing demand. For those who prefer not to hire and manage employees, they may choose to limit their workload or extend project timelines.

For those ready to expand, strategic decisions become crucial:

Outsourcing vs. Hiring: Consider outsourcing tasks rather than committing to full-time employees. Divide tasks into primary (core business activities) and secondary (support functions) categories. For instance, an accountant might outsource bookkeeping while keeping tax preparation in-house. A home remodeler might hire external specialists for HVAC or finish carpentry work.
Seasonal Work Considerations: If your business experiences seasonal fluctuations, hiring temporary employees can be cost-effective. For example, an accountant might hire temporary staff for tax season support.
Part-time vs. Full-time Employees: Evaluate whether part-time help can meet your needs while controlling costs before committing to full-time hires.
Cost Considerations: Beyond wages, factor in employer contributions to Medicaid and social security, benefits, payroll software, and insurance when budgeting for new hires.

Preparing for Business Growth

Transitioning from sole proprietorship to managing employees can be both challenging and rewarding. Consider investing in training on hiring practices and employee management to ensure a smooth transition. Establish clear employee policies as your team expands, shifting your focus from hands-on work to overseeing operations.

Conclusion

Growing your business requires careful consideration of financial implications and time commitments. Evaluate your goals and preferences to make informed decisions about expanding your team. Ultimately, building a business that can sustain itself beyond your direct involvement can provide long-term security and opportunities for succession or sale.