Dude just hire a manager. You are doing all the administrative stuff anyway. Just pay someone else to do it and spend half the current hours you do just managing one person.

There is never a bad time to start a good business. The problem is that a good business provides something that other people want, not what you think is a good idea. I would say that the best opportunity is usually something that you have some expertise in already and can also put work into to get started if you are bootstrapping to save on labor. Also, leveraging your network is usually key for getting started. If you can do something that people need better than other people doing it, you have something. If you want to start a business and just think people will show up, you will struggle.

What is causing the tiny profit? Expenses or revenue?

This is business It has nothing to do with the person, it is the problem that matters. The employee may still feel rejected and bad, but you are letting them go for the business. A business is viewed legally as an independent entity. You need to see it the same way. It’s like a loved one in a coma. You speak for it and do your best to do what is best for it