The Easter Road boss has so far made only one signing, bringing in St Mirren's former Celtic full-back David Van Zanten after a pre-contract agreement was sealed last month.
He has, however, confessed he is looking to increase his options throughout the team ahead of the start of the new SPL season on August 9. Paatelainen, said: "We want to improve and strengthen the squad. I do feel there are areas in our squad and team we need to strengthen.
"We are in talks with good players but I don't want to go into names.
"It's not grocery shopping we're doing, where you go and pick your stuff.
"It's not totally in our hands, we have to negotiate and make sure the player is happy. If the player is currently playing with another club we will have to negotiate with the other club first and that takes time.
"You get setbacks as well. You might have targeted players early on and gone for them and negotiated for a while and then it falls through. That might happen, it's not plain sailing.
"We have had setbacks but that is always the case, whether you are Real Madrid or Hibs there are always setbacks.
"But I've always said the world is full of players and we just need to dig deep and make sure the players that arrive are the right ones to improve our squad."