It was not until the third person was hired that Joanna and Melinda had a significant problem with managing their business. Their jobs changed. Their management struggles may be just beginning. Many successful business owners find that their roles change at the hiring of seven to 10 employees. More time is required to hire, train, evaluation, and manage people who work in the business.
More time is required to supervise schedules and systems.
Administrative structure becomes more bureaucratic where written policies and procedures are no longer options. Government compliance to regulations increases. The owner may not know all the employees. Workplace dynamics change. This is enough to stunt the growth of many businesses.