Shifting from one person company to multi-employees company

Hamied Abou Hulaikah

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I have a small company,it is 18 years old.
I found myself now as old man 40y, I want to make it a company has many employees, etc ...
Anyone can share us his experience or thoughts in shifting from one person company to multi-employees company, In my case, I felt it difficult! I can't do it "no reason way", is it fear of future?
 

rabbitBUSH

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I want to make it a company has many employees
There is a LOT of stuff that goes with that : administration of salaries - income tax administration - task division and management of performance - etc etc..
More employees means you may find you are no longer doing what you like to do because others are now hired to do it.
If you've grown to the point where you cannot handle all the work and customer contact etc - it might make sense - is there enough work (ongoing) to keep more employees?

Do it for the right reasons and with the correct strategy, reasoning, consultation with accountant and general "homework" done.

Would it be better to simply contract out the extra work - a question to consider?

is it fear of future?
probably (but probably "the unknown" = ?? = but that's no reason to avoid it! is it?)
 
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aeric

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There is a LOT of stuff that goes with that : administration of salaries - income tax administration - task division and management of performance - etc etc..
More employees means you may find you are no longer doing what you like to do because others are now hired to do it.
If you've grown to the point where you cannot handle all the work and customer contact etc - it might make sense - is there enough work (ongoing) to keep more employees?

Do it for the right reasons and with the correct strategy, reasoning, consultation with accountant and general "homework" done.

Would it be better to simply contract out the extra work - a question to consider?


probably (but probably "the unknown" = ?? = but that's no reason to avoid it! is it?
I believe man should grow up. Take the challenge and new responsibilities.
 

aeric

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I am sure, instead, that after 40, man begins to age, not to grow :(
Someone says age is just a number. I know you may mean physically. Just don't bother anything to stop us. I started to have long sightedness and stamina is never like before but I believe I am more confident with my many years of experience I am still able to do great. Man in 40s is just the beginning of something wonderful. Don't let any negative thoughts stop us to achieve our dreams. Our brain cells are certainly grows everyday! :D
 

jerry07

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Hah,
First congratulation on having your own company.

There are challenges having employees, sometimes you may want to have partner like Aeric mention, You can also have subcontractor/consultants which will work almost like employee but they will be responsible for their own administrative tasks, you will have to pay him/her more.

However I would challenge you to ask yourself why you think you want to hire people?
  • You want more free time?
  • You want to grow your business and sell it
  • You no longer want to work on your own?
  • Maybe some other reason?
Many times there is reason why you are thinking about hiring employee and sometimes there could be more ways to achieve your goal and only one of these is by hiring people. If you still decide that only way is to hire more people hire theme to do stuff that you don't want and maybe start them as part-time consultants.

Let us know how you are doing and good luck.

BTW. I agree 40 is not old, that is actually very nice age where there is fine balance between being mature, wise and still very coherent and don't have to accept all the cr..p that world is feeding you.
 

Hamied Abou Hulaikah

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40s mean you start aging, you want more free time for other duties...

You want to see your biz is going smoothly without you. Imagine the company is your son, you want to see your son independent of you .. that is my goal.
 

TILogistic

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You want to see your biz is going smoothly without you. Imagine the company is your son, you want to see your son independent of you .. that is my goal.

I started a company 10 years ago with my 4 children and my wife.

We are currently a son, my wife and myself.

Three of my children already have their companies.

And the fourth will take over the current company.

My goal is being fulfilled.
 

MrKim

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First, let me say that if what you want to do is grow a big company and make money DON'T LISTEN TO MY ADVICE. If what you want to do is enjoy life more and focus on the portions of the business you enjoy then read on.

Well, we are up to 5 people now and we are all (I think) having fun. Let me share my experience. First, I have been blessed. I have had the same business partner for 35 years and we get along really well - primarily I think because neither one of us gives a shit about money. We make enough to be happy (actually he has done real estate and has far more than I do - but thE Ppoint is we do it because we love the tech, and the challenge.

We have had a number of people over the years and what we have found is - if they are not making what we do more fun then get rid of them. We can do this because WE DON'T GIVE A SHIT ABOUT MONEY.

Do not be afraid to fire people! One of the best pieces of business advice I ever got was over thirty years ago from a friend and mentor who WAS good at making money. I was working for a company at the time and had about 35 employees under me. (hated it) I mentioned I hated firing people and this is what he said. "I Don't, if someone is not doing a good job they are not a good fit here and THEY know they're not doing a good job and are not a good fit. They're is a place for that person, it just isn't here so the quicker I get rid of them the quicker they can be looking for something where they will be happy and the quicker I can find someone who is a good fit here."

The people we are working with now are people we met through the industry we are in and wanted to join us because they like what we do. They are not greedy and looking for a big payday, they just enjoy the niche we are in. My partner and I are able to stay focused on development which is what we love and have been able to offload a lot of what we don't love: Paying bills, collecting bills, technical details, customer support (the parts we don't like) and, of course, sales. Everyone we work with started part time. Our Bookkeeper/finance person/bill collector is still part time, she has a number of other clients but she loves working with us because we aren't demanding and just let her do what she does best.

So look for people who compliment what you do and recognize that probably means they will have a different temperament and different priorities than you - that is a good thing. But if, after working with them for a while you find they are sucking energy from you rather than generating more energy then get rid of them and try again.

When I was young of course I wanted to set the world on fire and be rich but I gradually recognized that is just not what interests me. Some guy on a talk show once. Never forgot what he said.

"You know that old adage 'Just do what you love and the money bill come?' That's BS. If that was true bad poets would be rich. The people who say that are people who love to make money."

And I know people like that. I remember one friend who was extremely wealthy financially and he described an new opportunity (which he succeeded at). A city was getting out of the street sweeping business and was letting a contract for the business. And to him it was just "I need X treet sweepers at X dollars each and that many means I need two mechanics at X dollars and X drivers at X dollars, etc. he added it all up, add in his profit, and made a bid and won.

Now me, I want to know what the best street sweeper is and how it works and what kind of mileage it gets, what kind of person likes to drive a street sweeper, etc. He could care less, he was just moving $$$.

So, think about what you want to accomplish. Is it more money? More free time? Maybe just the ability to focus on the parts of the business you enjoy. Then talk to people you might want to work with or who would know people and TELL THEM your goals. And when you are hiring someone BE HONEST about what YOUR goals are and that you are looking for people that can help you accomplish that. That way there is less opportunity for friction because the goals are clear.

I am amazed every day that the talented people my partner and I get to work with are happy working with us.
 

LucaMs

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First, I have been blessed. I have had the same business partner for 35 years and we get along really well - primarily I think because neither one of us gives a shit about money. We make enough to be happy (actually he has done real estate and has far more than I do - but thE Ppoint is we do it because we love the tech, and the challenge.
Who is in charge of the accounting of your company?
I suspect that your partner has bought real estate in those 35 years and that you get along so well with him because in 35 years you have not noticed that he is stealing 90% of the money, which you do not care so much but he does.

? <--- I'm kidding.
 

Hamied Abou Hulaikah

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I started a company 10 years ago with my 4 children and my wife.

We are currently a son, my wife and myself.

Three of my children already have their companies.

And the fourth will take over the current company.

My goal is being fulfilled.
Your 3 sons follow your strategy ... going alone ... single man company.
This is a reasonable approach,but I don't prefer. Is it a Tech company? if yes, you are going in infinite circle! I want to break this circle.
 

Hamied Abou Hulaikah

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Licensed User
Longtime User
First, let me say that if what you want to do is grow a big company and make money DON'T LISTEN TO MY ADVICE. If what you want to do is enjoy life more and focus on the portions of the business you enjoy then read on.

Well, we are up to 5 people now and we are all (I think) having fun. Let me share my experience. First, I have been blessed. I have had the same business partner for 35 years and we get along really well - primarily I think because neither one of us gives a shit about money. We make enough to be happy (actually he has done real estate and has far more than I do - but thE Ppoint is we do it because we love the tech, and the challenge.

We have had a number of people over the years and what we have found is - if they are not making what we do more fun then get rid of them. We can do this because WE DON'T GIVE A SHIT ABOUT MONEY.

Do not be afraid to fire people! One of the best pieces of business advice I ever got was over thirty years ago from a friend and mentor who WAS good at making money. I was working for a company at the time and had about 35 employees under me. (hated it) I mentioned I hated firing people and this is what he said. "I Don't, if someone is not doing a good job they are not a good fit here and THEY know they're not doing a good job and are not a good fit. They're is a place for that person, it just isn't here so the quicker I get rid of them the quicker they can be looking for something where they will be happy and the quicker I can find someone who is a good fit here."

The people we are working with now are people we met through the industry we are in and wanted to join us because they like what we do. They are not greedy and looking for a big payday, they just enjoy the niche we are in. My partner and I are able to stay focused on development which is what we love and have been able to offload a lot of what we don't love: Paying bills, collecting bills, technical details, customer support (the parts we don't like) and, of course, sales. Everyone we work with started part time. Our Bookkeeper/finance person/bill collector is still part time, she has a number of other clients but she loves working with us because we aren't demanding and just let her do what she does best.

So look for people who compliment what you do and recognize that probably means they will have a different temperament and different priorities than you - that is a good thing. But if, after working with them for a while you find they are sucking energy from you rather than generating more energy then get rid of them and try again.

When I was young of course I wanted to set the world on fire and be rich but I gradually recognized that is just not what interests me. Some guy on a talk show once. Never forgot what he said.

"You know that old adage 'Just do what you love and the money bill come?' That's BS. If that was true bad poets would be rich. The people who say that are people who love to make money."

And I know people like that. I remember one friend who was extremely wealthy financially and he described an new opportunity (which he succeeded at). A city was getting out of the street sweeping business and was letting a contract for the business. And to him it was just "I need X treet sweepers at X dollars each and that many means I need two mechanics at X dollars and X drivers at X dollars, etc. he added it all up, add in his profit, and made a bid and won.

Now me, I want to know what the best street sweeper is and how it works and what kind of mileage it gets, what kind of person likes to drive a street sweeper, etc. He could care less, he was just moving $$$.

So, think about what you want to accomplish. Is it more money? More free time? Maybe just the ability to focus on the parts of the business you enjoy. Then talk to people you might want to work with or who would know people and TELL THEM your goals. And when you are hiring someone BE HONEST about what YOUR goals are and that you are looking for people that can help you accomplish that. That way there is less opportunity for friction because the goals are clear.

I am amazed every day that the talented people my partner and I get to work with are happy working with us.
Yes we should enjoy the challenges of our work, but We must also focus on $$$ to make us happy and fun as you said.
 

MrKim

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Who is in charge of the accounting of your company?
I suspect that your partner has bought real estate in those 35 years and that you get along so well with him because in 35 years you have not noticed that he is stealing 90% of the money, which you do not care so much but he does.

? <--- I'm kidding.
Cute! No, my partner made a lot of money before we became partners and invested well.
 
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