You know, when I work with private business owners like you, I often say that you should hire a key person to help you with your company. And the response I usually get is, you know, I would love to, but, I just can’t afford to hire that person. I understand that when you hire a new person whether it’s a frontline person or a senior manager, you’re gonna have to pay them some money.

You know, because of this dilemma, I’ve started thinking about hiring key people only makes sense if the person you’re going to hire will pay for themselves. Now I call this a free hire, and in today’s video, we’re gonna talk about what the free hire is, how you can evaluate whether you’re ready to grow your company by adding this type of person to your company, and some of the things you wanna think about along the way.


Transcript

You know, when I work with private business owners like you, I often say that you should hire a key person to help you with your company. And the response I usually get is, you know, I would love to, but, I just can’t afford to hire that person.

I understand that when you hire a new person whether it’s a frontline person or a senior manager, you’re gonna have to pay them some money. Yeah, I know you would like to get him free, but you really do have to pay him some money. I also know that without doing this, your business is never going to grow. I mean, by doing this, I mean hire that frontline person or more importantly, hire that key manager that’s gonna help you move your business to the next level.

You know, because of this dilemma, I’ve started thinking about hiring key people only makes sense if the person you’re going to hire will pay for themselves. Now I call this a free hire, and in today’s video, we’re gonna talk about what the free hire is, how you can evaluate whether you’re ready to grow your company by adding this type of person to your company, and some of the things you wanna think about along the way.

Hi, I’m Josh Patrick, the founder of Stage 2 Planning Partners and the Sustainable Business. I also am the one who’s responsible for putting together our Cracking the Cash Flow Code Program as well as the author of Sustainable: A Fable About Creating a Personally and Economically Sustainable Business.

You know, my favorite example about hiring that person that should be your free hire is that first outside salesperson that you hire.

You know, when I was in my food service and vending company, I would, when I first started, I did everything when it came to sales. I did the cold calling, I put the proposals together, I went out and made the initial contact, I made the third contact, the fourth contact, I would do the close, I would do the present, the whole process was me. And then eventually I got to the company to a size where me doing all the parts of our sales process just didn’t make any sense anymore.

So I hired our first salesperson. And of course the first salesperson I hired was a total disaster, ’cause I had no idea how to hire a salesperson, I had no idea what the concept of the free hire was, I had no idea how to really focus on what getting that type of person to do. So, the thing that I found most frustrating when I hired that first salesperson was during the first three months, and this is for the first three salespeople I hired, ’cause the first two washed out, was the first three months, money was only going in one way. It was going out the door, there was nothing coming in from them, and in fact, the amount of time that it took for me to help get that person up to speed was a lot more than the time it took for me to go out and do the entire sales process.

Now I would often ask myself why am I doing this? Why should I hire and train somebody when I could do it faster, and quicker myself? And the same came to mind about this thing, and I’m sure you’ve heard this saying, is I give you a fish, you eat for a day. If I teach you to fish, you eat for your lifetime. Now it takes a lot longer for me to teach you how to fish, than to give you that fish. But once I teach you how to fish, I no longer have to worry about whether you’re gonna have enough food to eat because now you know how to fish.

So when you’re putting together this free hire, one of the things I’ve learned along the way is you have to have mileposts so you know if you’re getting what you expect to get. If you’re not getting, if your milestones aren’t getting a hit, then you wanna cut that expense and say okay, do I wanna start over, or should I think about this in a different way?

Now, when you’re looking for that free hire, after the first three to six months, you should be at least at a break-even point. After six to nine months, you should really have that free hire.

So in the case of a salesperson, they should be creating enough business, enough new opportunities because I always did the closes and that was the last thing I did was they would do everything up to the point of a close. I would show up, I would do the presentation with the salesperson, then I would point at the salesperson and say, “This is the person who’s gonna be taking care of you. “They’re in a much better position to do this than I am.” But after six to nine months, that person has to be standing on their own two feet and doing what you want them to do. They’re not gonna be up to full speed there, that usually takes somewhere between one year and a year and a half at least in my experience, but after six to nine months, they should be a free hire.

So if you decided to get a free hire, here’s what you’re gonna need to do.

  • First, you need to have enough cash on hand to pay them for six months, because worst case scenario, you know, three to six months, they’re not gonna be creating anything, the cash is gonna be running out the door, and not coming in the door.
  • Your first three months should be the worst.
  • After the first three months, you should start moving towards break-even with that new person that you’re bringing onboard. If you’re not making any progress, it’s time for you to take a look back and say, what could I have done that I’m not doing along the way?
  • After six months, you should be making money and the hire should be free.
  • If you’re not, you wanna cut your losses and start over. It’s not that you don’t need the person in your company, it’s that you probably made a mistake in the hire or you made a mistake in the training that may not be gotten over. So if this is early in your stage, you wanna look at your systems to make sure your systems are right. If not, go back and fix your systems. If you’ve done this three or four times, and that free hire is not producing at the timeframe you want them to be producing, and you think they’d be producing, it might be better off for you to start over.
  • You know if it works, you wanna wash, rinse, and repeat with the next person who’s gonna help you grow your business.

You wanna do this time after time after time after time, and as you look at that free hire you wanna say, this person is coming in to replace my $25 per hour work. Meaning that I can hire somebody for $25 an hour and it leaves me free for a higher value work, then $50, and $100, and $150, and finally you wanna say, am I being freed up to do the $500 per hour jobs? If the answer is yes, you’re well along the road to building a business that you’re gonna love, a business that’s gonna be sizeable, a business that’s gonna be sustainable, and a business that you’ll be proud to own.

So thanks a lot for stopping by today. I hope to see you back here really soon. Why don’t you leave a comment below and click on the button below to GET our FREE eBook about How To Hire For Unique Abilities. It’s gonna help you learn what you need to do to minimize the chance of making a hiring error when you’re working on getting that free hire in your business. So thanks a lot, I hope to see you back here really soon.

Topics: Video, Sustainable Business, hire for unique abilities, training, sales person hire, key person hire, key person, free hire

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