Define all roles before recruiting

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It may be difficult for a new recruit to fit into a small team.

PROBLEM

My brother and I recently set up a business in the online retail sector. It is going well and we're looking to expand our management team. How should we go about this?

SOLUTION

James MacQueen, a BDO partner and accredited family business adviser, says the first step is to identify exactly what you're looking for in these new recruits - including any critical skills necessary for the business that neither of you are strong in.

The next step is to look closely at how you operate. It may be difficult for a new recruit to fit into the dynamics of a small entrepreneurial team - especially a family partnership such as yours where roles and responsibilities may not be clearly defined.

So you need to decide how much control you are prepared to give up and make it clear what aspects of your job you need the new staff to fulfil. You don't want to risk being frustrated by paying out a lot of your hard-earned cash in a new salary when you are still doing what you used to.

Also consider how the business will look and what its needs are in two or three years' time. If it continues to grow quickly, the next management team member's roles and responsibilities may evolve over time, as will your own.

You will find that many of the challenges you face at the moment due to the new and relatively small size of the business will be under control in a year's time and be replaced by different challenges associated with a larger and more complex business. Your planning needs to recognise this evolution so you are properly structured and resourced for the future and can continue to grow without complications.