By Rhonda Abrams
Gannett News Service

During many of my years in business, I worked alone, out of my home. It was satisfying and profitable. But one of the best decisions I made was to finally hire an employee.

Hiring your first employee is financially, logistically and psychologically challenging. But a question I often ask people who've been self-employed for a number of years is, "Are you creating a business or are you creating an income?"

Now, there's nothing wrong with building a "business" that just provides personal income; the overwhelming majority of entrepreneurs do just that. But at some point, you may decide you want to build a company that multiplies the value of your knowledge and skills, creating something of ongoing value. That means getting help.

How do you know it's time to hire your first employee?

Most business owners wait until they just can't handle all the work they have. This means you're going to be frazzled long before you get assistance. Even worse, during the time you're overworked, you're probably going to turn away - or turn off - customers.

Instead, ask yourself: "How much time can I free up if I get some assistance? How much more money can I make?"

Getting help doesn't mean immediately going out and getting a full-time employee. You can start with a part-time worker or even out-source some tasks. My first "employee" was a part-time administrative assistant. Wow. Suddenly, instead of me waiting in line at the post office or packing up boxes to send clients, I could actually be doing my work - generating more income.

But it also meant I had someone working out of my home. That was a difficult adjustment. But it kept me more focused for more hours of the day. And that meant I made more money, even though I was paying someone else as well.

One lesson I learned from my first assistant, Ann, was the importance of hiring someone you really click with, especially for your first employee. You want to feel comfortable having them in your home, small office or store.

Before you look for your first employee, write down all the things you might want that person to do. The two biggest mistakes: handing over too much authority, or not giving them any authority.

Recognize that you have to relinquish some control if you want your employee to be effective and satisfied. Be realistic - no one is going to be a miracle worker

When choosing employees, here's an important rule: Hire for attitude; train for skills.

To find applicants, start by networking with other business owners and through professional and entrepreneurial organizations. And don't forget the classifieds.

Hiring an employee is an investment in your business. Like all investments, it means giving up something now for greater rewards later. In the long run, you can build a bigger, more profitable business, with the help of others than by trying to go it all alone.

Rhonda Abrams is the author of "The Successful Business Plan: Secrets & Strategies" and is a popular speaker for conventions, workshops and conferences. For her free business tips newsletter, register at www.RhondaOnline.com.