How do I know if I should hire my first employee?

When you are considering hiring be sure to address these conditions: Can you afford an employee? Will this employee create more sales, help you deliver your product or service more efficiently or handle tasks that free you to do one of these two things? Would an employee allow you to give your customers more efficient service or quicker delivery, with the result that better service would lead to more customers or an increase in sales? There’s a tension between how much the employee’s salary and benefits will drain your business’ budget and how much extra money the employee’s presence will bring in. Another item to think about is whether you need someone full time, part time or will an independent contractor be more effective for your business?