Bring on an employee when the time you save by offloading tasks to that person can be used to generate revenue in excess of the costs associated with that employee.
Example: You spend 10 hours per week doing administrative tasks for your business and 30 hours per week prospecting, selling, and servicing accounts. You can pay someone $20/ hr to take over those administrative tasks, which gives you an additional 10 hours to prospect and sell. With that 10 hours, you generate one additional $1000 sale each week. You just added $40k in annual profit while working the same number of hours.
Bring on an employee when the time you save by offloading tasks to that person can be used to generate revenue in excess of the costs associated with that employee.
Example: You spend 10 hours per week doing administrative tasks for your business and 30 hours per week prospecting, selling, and servicing accounts. You can pay someone $20/ hr to take over those administrative tasks, which gives you an additional 10 hours to prospect and sell. With that 10 hours, you generate one additional $1000 sale each week. You just added $40k in annual profit while working the same number of hours.