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If you are in the position where your business is doing well and you’re looking towards the next step, it might be time to plan a business expansion. What this looks like will be different for every business, but we hope this post gives you some tips on what to consider before growing your workforce.

Would it be better to outsource?

There’s always a moment of worry about whether hiring new staff is the right decision. Can you justify the cost? What if the business goes downhill? If things go wrong, you’ve suddenly got people depending on you to pay their mortgages and feed their kids. It’s a lot of responsibility to take on.

If growth looks uncertain, or only needed for a project rather than ongoing work, there are plenty of freelancers and contractors out there who might be a better fit. It gives you the opportunity to see how that role impacts the business.

Do you have the physical space to expand?

Keeping costs down by only taking the office space you need is great… until it’s time to grow. Cramped spaces can actually diminish productivity, and aren’t that great for morale either. One option is to go and hire a remote team of workers. Lots of businesses are still hesitant to do this, but those that do use a remote team have had great success. It saves money on office costs and also keeps staff morale up. With video calls and messaging apps, it’s easy enough to get in touch with your team when you need to.

managed payroll services

If a new office is the way to go for you, you will need to get out and about and get some quotes on local office space. Be sure to consider things like public transport in the area and parking availability. You don’t want to make it too difficult for employees to get to the office! Alternatively, you might even consider co-working space.

Can you afford to equip your new staff?

Besides space and salaries, another thing to consider is whether you can afford to fully equip your staff with everything they need. This might include anything they need for the job, such as safety gear, personal protection equipment, seating, stationery, computers and so on.


Payroll is an ongoing cost once you recruit someone, and remember, it’s not just about affording what you pay out to the employee, there are on costs too. So, as well as salary, you’ll need to consider employers NI, pension contributions, any benefits, and the cost of actually operating payroll. (So you’ll need to decide if you’re doing it in-house or outsourcing it).

Business structure

Lots of people start off as a sole trader if it’s just them running the business. But when the business goes well and you want to expand and employ people, it’s worth rethinking your business structure. In some cases, this might mean that setting up a limited company is more tax efficient.

You may also be interested in…

Payroll services from as little as £4 per payslip

Using the Holiday Season to Start the Hiring Process

Getting Started with Pay As You Earn (PAYE)

Incorporating a Limited Company

About The Author

Christopher Jones

Forensics graduate-turned copywriter and blogger. I love turning complex topics into easy to understand, yet engaging pieces of content.

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