Employees are your greatest resource. Selecting the right employee for the particular task is a decision that has long-term consequences. It is important to take the time to do it right. How do you find the employees you need? What interview procedure do you follow, and how do you conduct reference checks. If you are not experienced in hiring employees it may be prudent to hand this job over to an experienced team. It may also be important test the candidates on specific job skills.

Always check references and probe into the relationship of the reference to the employee. Family and friends are often listed as contacts. Candidates should be willing and able to give past employers as references. If they are unwilling to let you contact previous supervisors be concerned.

Skills and Training

Will you be able to hire people with the necessary skills and training or will you provide this. Is the training something that you can do in-house or is it necessary to send them out for this training? A certain amount of on-the-job training is always part of any position, but when extensive knowledge of a process is needed, a more formal structured training regimen may be needed.

Performance and Control

Small business owners often feel that they don’t really need a defined performance appraisal system with just a few employees. While maybe you can operate without one, it’s best to establish this from the very onset of hiring your first employee. Employees all have rights and they will challenge you if they think that due process hasn’t been followed.

Seasonal or Part-time

Some businesses are seasonal or have special busy events. To be able to cover the additional business during these times seasonal employees are needed. Hiring part-time labor can be very difficult for some businesses when the hours or working conditions are challenging. Part-time employees must be trained and quality control measures need to be monitored. If part-time employees are meeting the public on behalf of the business you should be very concerned that they present the appropriate image for the business.


If the reader of your business plan has concerns about your ability to hire, keep and control employees your plan will not receive a very favorable review. Most businesses, especially service oriented businesses, are more about managing people than production.