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Team, hiring and leadership

When to make your first hire, and how to know you're ready

A readiness test for a first hire: whether the demand is durable, whether the role exists on paper, and whether you can fund a wage in a slow month.

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Most owners decide to hire on a bad week. The phone doesn't stop, a job runs late because you were quoting instead of doing, and somewhere around 10pm you think: I can't keep doing this. That feeling is real and it's usually accurate. It's also a terrible basis for creating a permanent role, because the same feeling turns up in a busy fortnight and in a business that's structurally unprofitable, and those 2 situations need opposite responses.

This is the readiness test. It sits inside the wider guide to hiring and leading a team in Adelaide, and it covers the decision only: whether to hire, not how to run the employment relationship once you have.

The step most South Australian owners never take

South Australian businesses by employment sizeA bar drawn to scale showing that 67.3% of South Australian businesses are non-employing and 32.7% have staff. Alongside it, 19,820 South Australian businesses have 5 or more staff. The rest are non-employing, or employ 1 to 4 people. Source: ABS, Counts of Australian Businesses, June 2025 release, checked 1 September 2026.The size of South Australian businessShare of actively trading SA businesses by size.67.3%non-employing32.7%with staff19,820SA businesses have5 or more staffThe rest are non-employing, or employ 1 to 4 people.ABS, Counts of Australian Businesses, June 2025 release.Checked 1 September 2026.

67.3% of South Australian businesses are non-employing, and only 19,820 have 5 or more staff (ABS, Counts of Australian Businesses, June 2025 release, checked 1 September 2026).

Read that as context, not as a verdict on you. It tells you that going from 0 to 1 is genuinely uncommon, which is why so few people around you can describe what it was like, and why the advice you get tends to come from either much larger businesses or from other sole operators guessing along with you.

The 3 questions that actually decide it

Everything else is detail. These 3 do the work.

1. Is the demand durable, or is this a spike?

Look back 12 months, not 6 weeks. If the busy period is seasonal, or it's 1 large client, or it's a project that ends in March, a permanent role is the wrong instrument. Subcontracting, a fixed-term arrangement or simply raising prices and taking better work may all serve you better and none of them locks in a monthly commitment.

2. Does the work you'd hand over exist as a defined block?

"I need help" isn't a role. Neither is "everything I hate". Write down what the person would actually do, hour by hour, for a normal week. If that list is 6 unrelated tasks that each need a different skill, you haven't found a role, you've found the symptom of a business where nothing is documented. That's fixable, and it's cheaper to fix before you hire than after.

3. Can the business fund the role through a slow month?

Not a good month. A slow one. A wage is a fixed commitment sitting against revenue that isn't fixed, and the gap between those 2 facts is where most first hires go wrong. If the answer depends on the next big job landing, the answer is no yet.

The alternatives owners skip straight past

There are usually 3 cheaper moves available before a hire, and they're worth ruling out rather than ignoring.

Fix the pricing first. If the business can't fund a wage, adding a wage doesn't fix it, it accelerates it. An owner working 60 hours at thin margins who hires someone is now an owner working 55 hours at thin margins with a new fixed cost. Price is usually the faster lever and always the less risky one.

Get the work out of your head before you hand it to anybody. A task that only exists in your memory can't be delegated, only supervised, which is why so many owners end up doing the job twice. What to let go of first as an owner-operator works through which tasks actually leave your desk and which ones never should.

Buy the capacity without buying the commitment. A contractor, a virtual assistant, a bookkeeper, a part-time person for 2 days a week: all of these give you room without a permanent role. None of them is a lesser option. Plenty of good businesses run this way permanently and deliberately.

Which shape of first hire you're actually making

First hires come in 3 broad shapes, and they solve different problems. Picking the wrong shape is a common and expensive mistake.

Somebody who does what you do. A second tradesperson, a second clinician, a second technician. This adds revenue capacity directly, which is why owners reach for it. It's also the hardest to find in a tight market, and it only works if you can describe your own standard clearly enough for somebody else to hit it. If your quality lives entirely in your head, this hire will produce rework and disappointment.

Somebody who takes the work you shouldn't be doing. Coordination, scheduling, quoting admin, invoicing, chasing. Usually easier to fill, usually cheaper, and it doesn't add revenue on its own. What it does is return your hours to the work that earns, which only pays off if you then actually spend those hours on earning rather than absorbing more admin.

Somebody who sells. The highest upside and the highest risk, and rarely the right first hire in a business where the owner is the reason people buy. It tends to work later, once there's something repeatable to sell and somewhere for the work to go.

Decide which shape you're hiring before you write anything, because the ad, the pay decision and the first month all follow from it.

What a hire really costs the business each month

The wage is not the number. The number is the wage plus the statutory on-costs (your accountant will give you the loaded figure for your situation, and it's worth asking before you advertise), plus the tools, vehicle, workstation, software seat or protective gear the person needs, plus training time, plus the hours you'll spend supervising instead of producing.

That last one is the item owners leave out and it's the biggest in month 1. Assume your own output drops while you're getting somebody up to speed. Budget for it, rather than discovering it.

Then work out what the role has to produce to cover all of that. Not "it'll pay for itself", which is a hope. An actual number: this person needs to release or generate X a month of value for this to work. If you can't name X, the decision isn't ready, and that's useful information rather than a failure.

Coaching isn't financial, tax or legal advice

Business coaching covers things like pricing, margins, cash flow, hiring, systems and planning. It isn't financial product advice, tax advice or legal advice, and the coaches in this network don't provide those unless they separately hold the licence or registration to do so and tell you that themselves. For advice on investments, super or insurance, see a licensed financial adviser. For tax, see a registered tax agent. For anything contractual or employment-related, see a lawyer.

Signs you're ready, and signs you're just exhausted

Ready looks like: turning down work you'd want and could do well, at a margin you're happy with. A defined block of work with a clear owner. 3 months of cash that doesn't depend on 1 client. A written answer to what the person decides without asking you.

Exhausted looks like: wanting somebody to make the feeling stop. No idea what they'd do on a Wednesday. Hoping the hire will force you to become organised. Choosing a hire because raising prices feels harder, which it usually does and is usually still the better first move.

Both states are honest. Only 1 of them is a hiring decision. The other is a signal that something else in the business needs attention first, and the useful thing about naming it early is that you can act on it without spending the money.

What to have sorted before anybody starts

If you've worked through the above and the answer is yes, 3 things are worth doing before you advertise rather than after.

Define the role properly, including what the person is allowed to decide alone. Then write the ad from that definition rather than from a template, which is the difference between 6 vague applications and 6 relevant ones. How to write a job ad that gets the right applicants covers that.

Plan the first week before you make the offer, not on the Sunday night before they start. Onboarding in a business with no HR sets out a version that works when the whole business is 4 people.

And handle the employment side properly through somebody qualified. Everything in this post is a commercial decision about whether the business should create a role. None of it is guidance on entitlements, classifications, pay rules or the paperwork that comes with employing somebody. Check the national workplace relations regulator for the rules, and take your specific situation to your own employment lawyer or an HR adviser before the person starts, not after something goes wrong.

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This guide sits inside Hiring and leading a team in a tight Adelaide labour market, the overview for team, hiring and leadership. Or go back to all guides.