Starting a business in Nigeria usually means wearing every hat. You are the CEO, the marketer, the customer service rep, and the delivery driver. While this keeps overhead costs low in the beginning, there comes a tipping point where doing everything yourself actually starts costing you money.
How do you know when it is time to hire your first employee?
1. You Are Turning Away Paying Customers If your DMs are full of inquiries you can’t reply to, or you have to reject orders because you physically lack the time to fulfill them, you are losing revenue. An employee’s salary is an investment that allows you to capture that lost income.
2. You Spend Too Much Time on Low-Value Tasks Calculate your hourly rate as the business owner. If you value your time at ₦5,000 an hour, you should not spend four hours a day packing boxes or running to the logistics company. Hire someone at a lower rate to handle administrative and operational tasks so you can focus on high-value tasks: networking, strategy, and sales.
3. The Finances Make Sense Never hire based on a single good month. Look at your cash flow over the last quarter. Can you consistently cover a new salary even during a slow month? If your business is ready to scale but you lack the immediate cash reserves to cover the first few months of payroll, a strategic business loan can bridge the gap while the new employee gets up to speed.
