" I say hire instead of promoting because I am assuming that if there were someone with the skills for the job you would already have noticed "
Whilst this could be true there also is the possibility for the OP that the business has grown rapidly and they are still trying to operate the same way as the early months, trying to be involved in too much and not delegating control and decisions.
My advice would be to have an honest conversation with the whole team, show the trust to be vulnerable and I'm sure if the team are great as you say people will find a way to pull together.
If these things don't work though as another poster mentioned, sell the business and protect your health. Best of luck!