Thoughts on Hiring

Recently, I came across an aspiring entrepreneur who told me that his plans for his company would include hiring many of his friends from college. He has trust in these friends and they bring a lot to the table in the way of creativity and business acumen. Besides they would have a great time going to work every day and wouldn’t that provide a great working environment!

My initial reaction was to congratulate him on his plans for his business. Then I told him that hiring your friends is not a good business practice. A business is not a social club where you can continue the fun you had in your college days. By hiring your friends you may not get the critical skills you require for the business, and you will not be able to get the benefit of different skills and points of view of people who come from different backgrounds and education.

A prospective business owner has to consider the business and what it needs to be successful. Considering the kinds of skills one requires of an employee is essential and drafting out a job description with salary range for a position makes good business sense. It offers a tool for planning your organization and the expenditure for human resources that you will have to budget for and cover with your sales efforts.

Of course, you don’t need to be friendly with a new employee. After all, you want him to produce for you. All you need in your business relationships with this new employee is to respect him. You may not like him, but if he is a good employee and provides you with quality work and you respect him, then that’s all you need.

The owners of a start-up company also have to keep in mind their budget constraints. If they cannot afford the people they would like, then they may consider hiring an intern, or someone on a part-time basis. Whatever you do remember: you have money and time invested in your business. Poor employees can hold you back; you want to have employees who can do the job and help you make a success of the business.

 

Margo Moore teaches BE 261 Starting a Small Business, CEO 001 Setting a Course for Your Business, CEO 002 Knowing Your Market, and CEO 003 Formulating Your Financial Strategy.

4 thoughts on “Thoughts on Hiring

  1. I totally agree with Margo. There’s a big difference in the mindset of being an employee and being an entrepreneur. owning a business means you have to think of the enterprise at the center of your decision making process rather than thinking about what you might want. Sometimes what’s best for the enterprise might not feel like its the best for you (like hiring your friends–it feels good to you but isn’t good for the enterprise). Getting the right butts in the right seats is one of the skills a masterful entrepreneur builds in order to create a healthy company.

    1. Thanks, Lisa, for your endorsement of my article. I enjoyed reading yours too, and I hope that we can meet someday at FIT.

  2. I agree with Margo also.If his friend does not work out, it will create a bad situation. I have known too many small business owners who have hired friends and relatives and the business to suffer greatly. Successful business owners learn how to keep their personal feelings away from doing what is best for their small business.

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