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 and he you. 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 and you want it to grow. Poor employees can hold you back; you want to have employees who can do the job and help you make a success of your business.