Hiring Employees When Starting a Small Business

A Home Business Article Contributed by G. Uma Bennett

Hiring Employees Confidently When Starting a new Small Business

How can you be confident in the character of your employees when starting your new small business? The most popular method after reference checks are background checks. Potential employees are aware that whether they are hired or promoted for a job may depend on a background check. For some jobs, screening is required by federal or state law. The current emphasis on security and safety has dramatically increased the number of employment background checks conducted.

But it is important for you as an employer to be cautious and follow the legal procedures as outlined in your state employment law guidelines.

Documentation for Employees

When starting your new small business and beginning to hire employees, start with a background report. Background reports can range from a verification of an applicant's Social Security number to a detailed account of the potential employee's history and acquaintances.

Documentation from employees are the pieces of information that form the background check, many of these sources are public records created by government agencies such as vehicle registration, credit, criminal, education, court records of bankruptcy or property ownership. In addition you might request records of military service and proof of state licenses and drug test records.

The First Step to Estimating the Cost of Starting your Small Business

Starting a small business is challenging, every business is unique with its own specific financial needs at different stages of development. This makes estimating your startup costs an individual process. Knowing the requirements of your business is the first step, some can be started with very little capital, others may require considerable investment in inventory or equipment.

Identify all the expenses your business will incur during its startup phase, the one-time costs, such as the fee for incorporating your business and those that will be ongoing, such as the cost of utilities, inventory, insurance, etc.

Wants Versus Needs

So many decisions are necessary when starting a new small business, one of the toughest may be to choose between what you want and what you need for your business, especially in the financing. Be realistic when you create your startup budget and include only the "must have" elements. These essential expenses fall into two categories: fixed expenses and variable expenses. Fixed expenses include monthly rent, utilities, administrative and insurance costs.

Variable expenses cover inventory, shipping and packaging costs, sales commissions, and other costs associated with the direct sale of a product or service.

Important One Time Expenses for Starting your Small Business

Part of the process of launching a small business is to consider all the costs in operating the business. It helps to know that your "one-time" expenses should be financed separately from your "monthly expenses". Calculate them wisely to be successful by knowing exactly what they are. "One time" expenses include: purchase and installation of fixtures or equipment, decorating and remodeling, your starting inventory, deposits with public utilities, legal and other professional fees, licenses and permits, advertising and promotion for opening, consulting & software.