The F Words in Business

Small Biz Book – Post #3

I’ve spent the last two posts convincing you that enlisting other individuals for help is a good idea, a necessity even, just to now tell you to be weary of who you choose. Let me go ahead and get this one out there right off the bat:

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Small Biz What Not to Do #3:

Don’t hire individuals just because they are friends or family.

Reaching out to family and friends for help with work seems a viable solution. An inner circle is immediately accessible and trusted. Seemingly, and more often than not, this group of individuals has a devoted interest in your success. However, I can’t ignore what I have experienced and observed, nor can I resist sharing.

My first experience with this situation was with my 2nd ex husband (yeah, I know, my next book will be What Not to Do when choosing a mate). My ex handled the landscaping portion of his brother’s nursery. These two siblings held vastly different views on maintaining a business. My brother-in-law’s work ethics consisted of waking up at the crack of dawn and working hard, in a balls-to-the-wall type of fashion, seven days a week. My ex enjoyed his days off, the times during the day that he could arrange to be off and delegating to others (not prepared to handle the job) so that he could have time off. After various lawsuit settlements, lost money and bitter arguments (including one that involved swinging pallet wood), their work relationship ended and familial connection was forever strained.

Next came C.O.X., the family office furniture installation business that I mentioned dedicating my life to in the previous post. The company had two owners-I was in a 4 year relationship with one of them. C.O.X. provided the total income for the needs of my family of seven. Therefore, failure was not an option; I was committed to its success 24/7. When our family had a need, the company provided … and vice versa. This arrangement resulted in me withdrawing a chunk from my teacher retirement funds to secure a warehouse for the business. I never once thought to get a contract in place about interest, my income, intellectual property or my stake in the company because, well, I still hadn’t learned to trust my mind more than my heart. For my lesson not to be in vain, I must share this gem: when your heart is involved, cover your a$$.

A suggestion to avoid mixing money with blood isn’t exactly revolutionary. (It actually came in handy with that one Side Gig I wrote about, but that was my own blood.) Let’s transition to the notion of enlisting friends for help. I’ve always been closer to my chosen crew because I actually invited them into my life verses just being stuck with them at the odds of birth. Still yet, the same murky line exists when merging friends and business relationships.

C.O.X. employed individuals with known addictions and criminal records. More times than not, this information was known well in advance of hiring, as the employees were friends of the owners. The reasoning behind the decision was to have a heart in giving people a second chance to build a better life. This is a very honorable notion, but is actually titled “enabling” when the known issues aren’t already overcome or at least in the process of correction. Admittedly, when sober, these friends performed their jobs better than anyone else in the company. The other 50+ percent of the time, they would not show up for work, or show up late-drunk or high, reeking of liquor and marijuana. This isn’t exactly the image we desired for our company, but our alternative options were to have a friend stay home and enjoy getting wasted more (not exactly punishment) or have a friend need to borrow money in about a week. The company had yet to establish SOPs (see From Problems to Procedures) that would serve as clear communication on disciplinary actions for specific offenses. In other words, our friends would get a slap on the wrist with some curse words and we would cross our fingers that the good version of our friend would show up for work the following day.

There are actually tax write-offs that encourage businesses to hire individuals with criminal records. I interviewed to be an Office Assistant for a paint company in which the blue-collar employees were all in a program to re-enter the workforce after being convicted of a petty crime. The owner was able to delineate who was sent her way, meaning she could stipulate which types of crimes were permissible (i.e. theft not murder) and how much time had to have passed since the incident. The same owner kept the office locked and under video surveillance and carried a gun. She also promoted shooting lessons and encouraged a license to hold to all of her office staff. This proves that taking precautions along with reading and following the fine print that coincides with the tax deduction are all necessary steps while participating in the honorable notion of giving people a second chance. Needless to say, C.O.X. did none of the above and, so, had issues such as employees with stolen tools and medication.

I have witnessed many other examples in which relationships severed due to business. In contrast, my personal relationship ended first and then I was fired from a company that I helped establish. The bottom line is the quote from the fun movie, You’ve Got Mail: “It’s not personal, it’s business.” (In hindsight, I should have realized that line must have stuck with me for a reason.) Contracts were obviously created because people were consistently finding a need for signed, written agreements. If a friend or family member is a raring obvious choice for help in which money or goods and services are going to be exchanged, keep in mind that the right person will have no problem with a clear, concise, legal form that includes the details of how your business relationship is a win-win situation for you both. In my next small biz post, I am going to explore how to find employees outside of the F Crew.