HR Basics Every Entrepreneur Should Know
If you’re running a small business, you’ve probably thought: “I only have one employee. Do I really need HR?”
I hear this all the time — and the truth is, yes, you do.
HR isn’t just for big companies with departments and fancy org charts. HR is about creating the foundation that keeps your business protected, your employees treated fairly, and your sanity intact. And here’s the thing — when you don’t put even the basics in place, you’re opening yourself up to expensive mistakes (and a lot of stress).
I work with entrepreneurs who are overwhelmed, overworked, and worried about getting HR “wrong.” If that’s you, you’re not alone — and you don’t need a whole HR department to get this right. You just need a few core pieces in place. Let’s walk through them.
Job Descriptions Are Non-Negotiable
A clear job description is one of the simplest (and most overlooked) tools in your HR toolkit. It sets expectations for both you and your employee — what the role includes, how success is measured, and where boundaries are.
Without one, things are left open to interpretation… and I promise you, everyone interprets things differently. That’s where confusion, resentment, and disappointment creep in.
👉 Want help writing yours? Grab my free Job Description Template with AI prompts and save yourself hours of trial and error.
Hire for Skills and Values
When it comes to hiring, too many business owners only look at skills. But here’s the reality: skills can often be trained. What you can’t train is curiosity, work ethic, or willingness to learn.
Ask yourself:
Are they open to feedback?
Do they align with my company’s values?
Can I bring them up to the skill level I need with the right training?
The best hires usually have a mix of both: the baseline skills to do the job and the attitude that fits your team.
Compliance Isn’t Optional
This one matters more than most small business owners realize. I’ve seen it firsthand: an entrepreneur sued because they didn’t have a sick leave policy in place — even though it was required by their state. It wasn’t malicious. They just didn’t know.
But ignorance doesn’t hold up in court. And those “simple mistakes” can cost you thousands in legal fees.
The good news? You don’t have to know everything. You just need to set up the right systems and stay aware of local, state, and federal employment laws. (My philosophy: get ahead of problems before they become problems.)
Onboarding Is Culture-Building
Your onboarding process is the first impression your new hire gets of your business. It’s not just paperwork — it’s how you show them they’re valued, supported, and clear on what success looks like.
Great onboarding includes:
Training and resources they’ll actually use
A warm welcome and team introduction
Clear expectations for the first 30 days
When you skip this? Employees flounder, disengage, or leave before they’ve even hit their stride.
Culture, Communication & Feedback
Policies and compliance create the structure. But culture is what makes people want to stay.
Communicate openly — so no one feels left in the dark
Offer growth opportunities — so employees see a future with you
Prioritize well-being — because burnout doesn’t help anyone
And don’t forget feedback. Giving constructive feedback doesn’t have to feel “mean” or “bossy.” Frame it around growth: “Here’s where you’re excelling, and here’s one area where we can improve together.”
Ready to Stop Worrying About HR?
Here’s the truth: HR doesn’t have to be scary or overwhelming. The basics are about setting up the right foundation so you can protect your business, lead with confidence, and create a workplace where people thrive.
🎁 Start simple → grab my free Job Description Template to set clear expectations with your team.
🚀 Ready for the next step? Check out my Hiring & Onboarding Starter Kit for Small Business Owners. It walks you through everything from writing job descriptions to staying compliant
