Hiring your first employee is one of the biggest decisions in a trades business. Get it right and you double your capacity, take on bigger jobs, and start building something more than a solo operation. Get it wrong and you've got employment obligations, a salary to cover, and a van that's more expensive than it earns.
Here are five signs you're actually ready.
1. You're regularly turning work down
If you're at capacity — turning down good jobs, referring work to other tradespeople, or telling clients you can't get to them for weeks — that's the clearest signal. Consistent overflow, not a busy patch, is what you're looking for. Three months of turning down work is meaningful. Three weeks isn't necessarily.
2. Your margins can absorb the cost
An employee costs more than their salary. Add national insurance contributions, holiday pay, tools, a second van insurance, and the management time required, and the true cost of a new hire is typically 30–40% above their wage. Run the numbers before you hire, not after. If the work you're turning down would comfortably cover that, you're in good shape.
3. You have repeatable systems
If you're the only one who knows how to quote a job, handle a difficult client, or order the right parts, hiring someone creates risk rather than reducing it. Before you bring anyone on, your core processes — quoting, scheduling, invoicing — should be systematic enough that someone else can follow them.
4. You've got 3 months of salary in reserve
New hires take time to become profitable. There's training, the learning curve, the jobs they slow down. A three-month cash buffer means you can afford the ramp-up period without it threatening the business.
5. You actually want to manage people
This one gets missed. Managing an employee is a skill, and it takes time. If you love being hands-on, doing the work yourself, and having full control over quality — hiring might make your life worse, not better. Be honest about whether you want to be a business owner or a tradesperson. Both are valid. They're just different jobs.
If all five are ticked, you're in a strong position. If three or four are, it might be worth exploring a subcontracting arrangement first — lower commitment, same capacity increase, and a way to test whether the working relationship makes sense before making it permanent.