Your errand running business works fine when you're doing it solo—but you're hitting a ceiling on how many clients you can serve. Hiring your first employee unlocks the ability to take on 3–5× more jobs without burning out. Here's how to do it without tanking your profit margins or your sanity.
Know When You're Ready to Hire
Don't wait until you're desperate. The right time to hire is when you're consistently turning down work because you don't have capacity. If you're getting requests for 10+ additional errands per week that you can't fit in, you have real demand to fill.
Look at your numbers: if you're running 20+ errands per week consistently over a 3-month period, a second person pays for itself quickly. At $25–$50 per errand (depending on your market and service complexity), adding even one employee handling 15 jobs per week generates $375–$750 weekly in new revenue—far more than a $15–$18/hour employee costs.
Decide: Full-Time, Part-Time, or Independent Contractor
This choice shapes everything: taxes, training, liability, and labor law compliance.
Part-time employees (15–25 hours/week) are the sweet spot for growing errand services. You avoid many full-time benefit obligations, they're available for peak demand hours, and you can scale back if business dips. Expect to pay $16–$20/hour depending on your location and whether they're driving their own car.
Independent contractors sound cheaper, but the IRS has strict rules about who qualifies. If you control how, when, or where they work, they're likely employees—misclassifying them invites penalties. Use contractors only if they're genuinely setting their own schedule and using their own vehicle with their own insurance.
Full-time hires make sense once you have 50+ errands per week and can guarantee consistent hours. You'll pay $28,000–$35,000 annually plus payroll taxes, but you get stability and can train them deeper into your brand.
The Hiring Essentials for Errand Running
Background checks are non-negotiable. You're sending someone into clients' homes, handling their keys, and managing their sensitive tasks. Budget $30–$75 per background check and don't skip it. Use a service like Checkr or GoodHire that integrates with your hiring flow.
Look for reliability and communication over experience. Someone who shows up on time, updates clients promptly, and admits mistakes is worth far more than someone with "errand experience." Errand running skills are simple; trustworthiness isn't. In your interview, ask about their last three jobs and why they left. Dig into how they've handled missed deadlines or difficult clients.
Vehicle and insurance matter enormously. Will they use their own car or yours? If theirs, require proof of commercial auto insurance ($300–$600/year for errand services). If yours, you need commercial vehicle insurance and a clear policy on maintenance and mileage reimbursement ($0.50–$0.67 per mile is typical).
Setting Up Your First Employee for Success
Create a simple one-page checklist of your core processes: how you assign jobs, how they communicate with clients, payment procedures, what to do if something goes wrong, dress code, and safety protocols. Don't write a 20-page manual yet—that kills motivation. Build it together as you go.
Start with a 2-week trial period (paid, obviously). Have them shadow you on 10–15 jobs, then gradually hand off jobs while you monitor their communication and execution. This tells you fast whether they're a fit.
Managing the Transition Without Losing Clients
Your existing clients hired you. Introduce your new employee as part of your team, not a replacement.
- Send a brief email to active clients: "I've brought on [Name] to help serve you better. They'll be handling X jobs going forward, and I'll still oversee everything."
- Let your trusted, low-risk clients go first (simple errands, flexible people).
- You stay on high-value or tricky jobs until your employee proves themselves.
The Money Reality
If you're running 20 jobs/week at $35 average revenue and hiring someone to handle 10 of those:
- New weekly revenue: $350
- Employee cost (15 hours at $18/hour): $270
- Net gain: ~$80/week, plus you freed up 10 hours for business development
That's $4,000+ annually in extra profit, plus you can finally take a day off.
Listing your service on Mercoly makes hiring easier too—you'll have more consistent lead flow to hand off, reducing the risk of underutilizing your first employee.
Frequently Asked Questions
Q: What happens if my employee gets into a car accident while running errands? Your commercial auto insurance covers it if they're driving your vehicle. If they're using their own, their personal insurance likely won't—which is why requiring commercial coverage is critical.
Q: How do I know if someone is truly an independent contractor vs. an employee? The IRS cares about control: if you dictate when, where, or how they work, they're an employee. Contractors set their own schedule and methods.
Q: Should I hire a friend or family member? Proceed cautiously. Professional relationships fail fast when personal ones are involved—have a written agreement regardless.
Start small, hire smart, and scale sustainably.