Hiring Staff 1st Time for Startup But Got No Money

[Arehman99]

Hi Everyone,

I have a dessert shop and I started it with a small personal saving so I don't have any surplus cash. I sometimes get help with cover from family and friends but not always.
The shop has alot of potential as at times we get alot of orders at once which we can't handle (due staffing) hence I have been holding the business back and not pushing it too much in the fear we won't be able to meet the needs. But if I continue like this, it's pointless, I will never fulfil its potential or be able to scale up.

There were alot of things that were holding me back. mainly money, but I am now looking to push the business to its full potential and hence I need staff for that. We are a delivery and take away only (not eating in) so luckily I don't need many staff members (2-3 at this stage).

My question is how do I hire staff when I don't have much money? What can I do?

Thank you

 

[Joyous]

Bank loan seems the obvious answer. Work out how much youre planning to pay them and that's your starting point.

You could also try a peer-to-peer lender like The Funding Circle.

 

[AndEde]

Start with part-time staff to reduce costs.

 

[Mark T Jones]

It isn't clear what advice you are looking for - how to raise funds, or how to get staff with no money?

Agency staff will give most flexibility (but will arguably cost more than employees)

If you are looking for funding, I'd strongly recommend Start Up Loans - part of the process is to create a business plan with projections which will undoubtedly benefit you

 

[Porky]

My question is how do I hire staff when I don't have much money? What can I do?

Hi @Arehman99
You have your answer: Put your business plan together and work out what you believe you can deliver with what level of staffing and marketing you need and from that you know what your working capital requirement will be.

Business Plan template

Need a template for a business plan? Our business free plan template gives you a structured way to organise your business ideas and goals. Find out more.

www.startuploans.co.uk

You can use the template above for this purpose, then you have two options:-
1. Either apply for the loan from small business loans for that working capital short fall - but remember you would need to pay this money back and if the business doesn't go to plan or it fails you will be responsible for the loan OR
2. Try and raise the working capital requirement from Friends and family that might help you get the business off the ground without the need for a loan or in return for equity or an IOU to repay at a future date once the business is established with higher revenues.
Good luck

 

[Gecko001]

If you do not have surplus cash now, it is unlikely that you will have surplus cash when you employ someone. Look at what you are doing now and see how you can change things so that you can get that surplus cash coming in.

 

[Paul FilmMaker]

Just an idea. Occasionally, there are govt grants. I was paid to hire someone years ago which covered most of their costs. Because it was govt, payment timings were challenging and there were cashflow etc... issues but overall, it was good.

That scheme was know to my local borough's business team. Their task was to help small, growing, local businesses expand and they were aware of any grants.

So maybe worth having a chat with them.

 

[Newchodge]

Just an idea. Occasionally, there are govt grants. I was paid to hire someone years ago which covered most of their costs. Because it was govt, payment timings were challenging and there were cashflow etc... issues but overall, it was good.

That scheme was know to my local borough's business team. Their task was to help small, growing, local businesses expand and they were aware of any grants.

So maybe worth having a chat with them.

I think Local Authorities have schemes to get people into work, by paying part of their wages. But they are unlikely to be experienced staff.

 

[Paul FilmMaker]

I think Local Authorities have schemes to get people into work, by paying part of their wages. But they are unlikely to be experienced staff.

Yes, I can confirm this is broadly correct. It was all geared towards hiring someone U20.

 

[Tomwirral]

Hi Everyone,

I have a dessert shop and I started it with a small personal saving so I don't have any surplus cash. I sometimes get help with cover from family and friends but not always.
The shop has alot of potential as at times we get alot of orders at once which we can't handle (due staffing) hence I have been holding the business back and not pushing it too much in the fear we won't be able to meet the needs. But if I continue like this, it's pointless, I will never fulfil its potential or be able to scale up.

There were alot of things that were holding me back. mainly money, but I am now looking to push the business to its full potential and hence I need staff for that. We are a delivery and take away only (not eating in) so luckily I don't need many staff members (2-3 at this stage).

My question is how do I hire staff when I don't have much money? What can I do?

Thank you

Firstly congratulations on having the muster to start a business in the current economic climate - you are obviously ambitious and want to make good of your life.

I would suggest that you advertise for staff on the understanding that they will not be paid until the business is making enough to support them - you could offer them an incentive - when the business is turning over x amount then I will return to you a % of the money?

Even look into voluntary organisations as they may have people who want to work who may be disabled and are looking to do part-time work here and there but for their own circumstances cannot commit to full-time job

Good luck mate and hope your business does well

 

[tony84]

If you sell a dessert today, when do you receive that money?
You do not pay a member of staff at the end of their shift, you may pay weekly or monthly. Can you not try to coincide it with when you receive the money?

 

[Newchodge]

Firstly congratulations on having the muster to start a business in the current economic climate - you are obviously ambitious and want to make good of your life.

I would suggest that you advertise for staff on the understanding that they will not be paid until the business is making enough to support them - you could offer them an incentive - when the business is turning over x amount then I will return to you a % of the money?

Even look into voluntary organisations as they may have people who want to work who may be disabled and are looking to do part-time work here and there but for their own circumstances cannot commit to full-time job

Good luck mate and hope your business does well

Recommending that someone breaks the criminal law is never a good idea. Have you heard of the National Minimum Wage regulations?

That aside why do you think anyone would be mug enough to work on the understanding that they would not be paid? How do you expect them to eat?

 

[japancool]

What about getting an apprentice?

 

[Newchodge]

What about getting an apprentice?

NOOOO. An apprentice is not there to work. An apprentice is there to learn.

 

[japancool]

NOOOO. An apprentice is not there to work. An apprentice is there to learn.

Yes, I was assuming that it was a genuine apprenticeship where the apprentice starts off unskilled and is trained to do the job. But then again, that may not be practical, since, if they're working in a food preparation environment, meaning they'd need various qualifications before they could even start.

 

[Porky]

NOOOO. An apprentice is not there to work. An apprentice is there to learn

Tell that to my cousin, who thought he dropped Lucky getting an apprentiship in catering at Aston Villa FC and it resulted in him spreading butter on about 1000 slices of bread a day for sandwiches

Mind you after a couple of months training he couldn't half rustle up a butty quick I can tell you

 

[Ozzy]

NOOOO. An apprentice is not there to work. An apprentice is there to learn.

There are genuine apprenticeships in hospitality and catering. So it’s not a unreasonable idea, when looking to hire staff I always feel more confident in a candidate with an apprenticeship over someone who’s only been to University

 

[Mark T Jones]

There are genuine apprenticeships in hospitality and catering. So it’s not a unreasonable idea, when looking to hire staff I always feel more confident in a candidate with an apprenticeship over someone who’s only been to University

Stepping in the middle here, in non-technical environments an apprentice can add an element of labour whilst learning (unlike engineering apprentices, where it is accepted they will take a skilled person off the job for a period of time). In this case though, it seems the OP's problem revolves around immediate, short term needs, which wouldn't suit apprenticeships

That said, the OP hasn't responded so we may never know

 

[Annoying Donkey]

That aside why do you think anyone would be mug enough to work on the understanding that they would not be paid? How do you expect them to eat?

Isn't that a definition of most business owners starting up...?

 

[Newchodge]

There are genuine apprenticeships in hospitality and catering. So it’s not a unreasonable idea, when looking to hire staff I always feel more confident in a candidate with an apprenticeship over someone who’s only been to University

Yes, but I would never recommend an apprenticeship for an employer who has never employed anyone.

 

[IanSuth]

Talk to local college that covers catering, they may have people needing work experience who would work on a zero hours contract, want to work and bring you ideas that may help you.

(Or offer evening courses/advice that might help in your business )

 

[tony84]

Tell that to my cousin, who thought he dropped Lucky getting an apprentiship in catering at Aston Villa FC and it resulted in him spreading butter on about 1000 slices of bread a day for sandwiches

Mind you after a couple of months training he couldn't half rustle up a butty quick I can tell you

How long before he can do the other 999?