I think many people are scared to start a new business, as they will not have guaranteed income and stability for quite a while before the business will start taking of... if it does take off.. And even though you may not require a lot of capital, you need some form of backup to cover you in this time during which you will be building up the business, which everyone does not have.
The real problem is most people aren't prepared to get out of their comfort zone.
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HR Solutions (23-Jun-15)
I recently radically changed tack this week. The business was always one entity and its now been split into two. You see, we have a business, HC that does laser cutting, CNC machining and product development. Then we have a brand, SC, which is aimed at a particular market. SC is isolated in the sense that the staff that are employed to manufacture for the brand can be ring-fenced and dedicated to that brand.
So, I had a long talk to the SC people and explained to them in concise financial terms that they do not make a profit for me, they barely cover their salaries, and that if I were to shut that operation down I would be better off, not only financially but also not having to be their mommy, daddy, social worker etc. I put the ball in their court and gave them a measure of free reign. I give them the customer orders, the ability to sell via BoB & Ebay and also all the support that they need. For the rest of it they are on their own. The brand, SC, is now run as an independent business unit with managerial & financial oversight. I no longer pay their salaries, they do. I made it clear that I couldn't care less whether they make R0 or R100K each provided that all costs are covered and I get my fair share of the profits. I made it clear that I really don't care, they can hire and fire and beat one another up, its up to them.
The guys used to sit and talk rubbish and bicker amongst themselves all the time. There was a bit of animosity between them before as well. Some were always late and they would not work overtime. The situation is totally different now, they work their asses off and no longer fight amongst themselves. I think that knowing that the boss isn't going to pay their salaries makes a huge difference. They asked to be given their own remote so that they can start to work earlier in the morning...(now that is a first) The vibe at the office has made a 180 degree turn. I don't walk around checking on them and stressing about their salaries, I now concentrate on developing my half of the business.
The bottom line is that they now understand that I am better off without them and that side of the business at the moment and that I have no qualms about shutting it down if it doesn't become very profitable very quickly. Also that I am able to earn more money than their combined salaries if I simply work alone. They have been empowered and are in control of their own financial destinies.
They wanted a pay hike....they can earn it themselves!
Adrian
That is great let us know how it goes. Staff management is a problem for me as well so any insight is welcome.
Only stress when you can change the outcome!
That is such a fantastic way of going about it Adrian. Bottom line is they get out what they put into it - well done. There are too many people out there that want their piece of the pie but don't want to contribute to making it happen.
Totally derailing the thread Adrian... but worth it. Thanks for that post.
Haven't you essentially done the entrepreneurial "thing"? Set up the business, empowered the staff, delegated most tasks and moved on to the next job. I think its brilliant. Now why aren't more of us doing that?
Nicely summed up. I agree.Originally Posted by Dave A
If that's their main reason, aren't there lots of business ideas that could be outsourced? That doesn't require a shift out of a comfort zone. Which leads to my previous question:
What would stop you then from outsourcing the daily management? Is this simply not practical?
Not sure if Adrian is derailing the thread because he is offering a way to start your own business as the thread heading. It also answers a question why some people don't start their own bussiness - because they might be scared of paying salaries/wages and overhead costs. This is a great way for people to start their own business.Totally derailing the thread Adrian
That sums it up. Most employees are like children; the boss thinks for them, the boss takes responsibility, the boss picks up the pieces. The more we try to control people, the less productive they become. Take Google and Microsoft as examples: no dress code, flexible work hours, informal surroundings etc They measure output, not input and they allow workers to think for themselves and be creative.
Excellence is not a skill; its an attitude...
It's not that simple. You have to keep a close eye because quality can suffer if they are totally left to their own devices.
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