What creates success in a small entrepreneur business?
The answers are many – a good idea is crucial. Strategic skilful leadership that understands what it takes to market the product. Luck or lack thereof also has influence on who makes it or breaks it.
But especially in smaller companies it is very important to also remember the employees – not just those who are there today, but also those who might be employed in the future! When a contractor is developing his or her ideas, the HR Manual is probably not their first concern, but many forget think of the recruitment strategy in time.
I've seen a surprising number of small businesses whose growth was severely slowed down because they could not find the right vendor, developer, project manager, supporter or the like. A thriving business with a good idea will suddenly find it difficult to maintain momentum, simply because they are lacking skilled people. Some even go bankrupt because they did not have the manpower to deliver. With the economy going bad and unemployment rates going up, many tend not to consider this at all, but it can be dangerous!
Although there is still high unemployment, it is not that easy to find the right people for your company. In a small business, there are many factors that come into play and makes it harder to find the needle in the haystack.
There is no time for training – therefore you will often want a "plug-and-play" employee who has relevant experience in a similar position.
Personal chemistry is essential if you are only 2-3 people in the team. How do you select based on chemistry?
Career paths are rarely evident in a small business, which will prevent certain people from joining.
Often small businesses are unknown to the general public, and therefore you dont get unsolicited job applications.
This applies no matter how small your business is. If you have plans for growth, it is important to think about Employer Branding, when you think Branding! It doesn’t have to be a big project, but consider some things in time:
What kinds of people do you imagine hiring? Have a working environment that is interesting for this particular type.
Where are your future employees now? Should you consider your brand's visibility in educational institutions, fairs or online forums?
Should you assign a fixed external recruitment resourse that is always on the lookout for the right profiles?
Employee benefits are helping to attract and also retain employees. Think creatively! It doesn’t have to be holidays to Dubai – A funky address will for some employees be interesting in itself, good coffee will attract some and a lunch scheme is the most important thing for others.
Get started as soon as possible – good recruitment often takes time.
Never employ if you are in doubt – it will be expensive in the long run!
Never take your current good employees for granted!
As with everything else in your company think strategically when it comes to the employees – both those you have now and those you need in the future to grow!