How to know when it's time to hire your first employee in your trade business

Growing your trade business is exciting, but when is the right time to hire your first employee? Too soon, and you could put pressure on your cash flow. Too late, and you risk turning away work because you’re stretched too thin.

Many tradies hesitate to hire because they fear the responsibility of payroll, extra costs, and training. But staying a one-person operation forever could be holding your business back. Here’s how to know when it’s time to take the leap.

Signs you're ready to hire

1. You’re turning down jobs – If you have more work than you can handle, it’s time to expand.

2. You’re working 60+ hour weeks – If you’re constantly on the tools AND handling admin, invoicing, and scheduling, you’re at risk of burnout.

3. You’re losing quality control – Rushed jobs and mistakes due to overload can damage your reputation.

4. You can afford it – If your finances show consistent profit, you can bring in help without stressing about payroll.

   
   

Another big indicator is whether your work-life balance is suffering. If you’re constantly missing family time, weekends, or even just a good night’s sleep because your business is running you into the ground, hiring support could be the next step toward sustainable growth.

What to do before hiring

1. Run the numbers – Work out if you can afford wages, super, workers' comp, and insurance.

2. Start small – If you’re unsure, try a casual or subcontractor before committing to a full-time hire.

3. Systemise your business – Have clear processes for job management, invoicing, and quoting so your new employee can get up to speed quickly.

4. Know the legal requirements – Understand Fair Work regulations, pay rates, and workplace safety laws.

5. Set expectations – Be clear on the role, responsibilities, and how success will be measured.

Bringing on your first employee is a big decision, but with the right planning, it can help your business grow, free up your time, and improve profitability.

Hiring your first employee is a big step - make sure you do it right. Inside our Small Business Foundations Course, we guide you through the financial planning, hiring process, and legal requirements so you can bring on the right person, at the right time, without hurting your cash flow.