When and How to Build a Team for Your Small Business


Understanding When to Build Team

As a small business owner, one of the most challenging yet rewarding decisions you will make is determining the right time to expand your team.

One clear signal that it’s time to build a team is when you’re no longer able to effectively manage all the tasks within your business. A 2020 report by QuickBooks reveals that 50% of small business owners feel overwhelmed by managing their businesses [1]. It is paramount to recognize that building a team allows you to focus on core business activities while delegating the rest.

A second indicator is when business growth outpaces your ability to deliver quality services. For example, if you own a bakery and start getting more orders than you can handle alone, it’s time to bring in additional bakers.

Preparing for Team Expansion

Before rushing to hire, prepare to build team structure that will benefit your business in the long term.

Firstly, define clear roles. Identify what tasks need to be accomplished and what skills are needed for them. These will form the basis of your job descriptions.

Next, create an enticing company culture. Culture plays a crucial role in attracting and retaining talent. Your culture should embody your business values, encourage teamwork, and foster a positive work environment.

Finally, plan your budget. Remember, hiring employees isn’t just about salaries. You also need to factor in recruitment costs, taxes, benefits, training, and equipment.


Identifying the Right People

In terms of talent acquisition, “quality over quantity” is a golden rule.

Leverage your network. Referrals from trusted associates are an excellent source of quality candidates. A LinkedIn report states that 85% of jobs are filled through networking [2].

Consider cultural fit. Skills can be taught, but cultural fit is harder to change. Hire people who align with your business values.

Lastly, remember that the hiring process is a two-way street. While you evaluate candidates, they also evaluate you. A polished, professional hiring process shows potential hires that your business values its employees.

Step-by-Step Guide to Build Team

Here’s a concise guide to help you embark on your team building journey:

Step 1: Identify your needs – Understand the tasks that need to be accomplished and the roles needed for them.

Step 2: Prepare job descriptions – Highlight the roles, responsibilities, and skills required for each position.

Step 3: Budgeting – Plan for recruitment costs, salaries, benefits, and other associated costs.

Step 4: Advertise job openings – Use various platforms including online job sites, social media, and referrals.

Step 5: Review applications – Shortlist candidates based on their skills, experience, and cultural fit.

Step 6: Interview process – Use interviews to further evaluate the shortlisted candidates.

Step 7: Make the offer – Once you find the right candidate, make them a formal job offer.

Step 8: Onboarding – Ensure new hires have a smooth transition into your business.

To conclude, knowing when to build a team, preparing for expansion, and identifying the right people are key components to growing your small business. With careful planning and thoughtful execution, you can create a dynamic and productive team that will drive your business towards success.


[1] QuickBooks (2020). Small Business Challenges and Trends Report.

[2] LinkedIn (2022). Global Networking Survey.