Expert: Entrepreneurs should hire cautiously

3/16/2011

In some sectors, the recession is beginning to subside and many companies are positioning themselves for growth over the next few years. However, according to business expert Norm Brodsky in Inc. magazine, entrepreneurs need to be careful when it comes to hiring new employees, as consumers may not spend money as as freely as they did previously.

Brodsky explains that the 2008 economic recession was different from those in years past, as it stemmed from poor shopping behaviors that saddled consumers with debt. Even though the economy is recovering, consumers may still be hesitant to spend money.

This means that brands need to curtail their hiring plans, as business might not return as sharply as some sources have predicted.

"So, on the hiring front, I'd advise holding off, even if it means continuing to work short-handed and paying overtime. Whatever money you would have spent on hiring people, I'd put into sales and marketing instead," Brodsky writes for Inc.

If hiring is a must, small businesses shouldn't be afraid to take out commercial loans, as this will help them afford a bigger workforce in the short-term.