A Tale of Two Independents – What’s in a Name?

Jerry and Steve each operate their own web services company. Strictly speaking they are each a company of just one and the bulk of their work involves coding, formatting, updating and maintaining the functionality of various websites. They are about the same age, have a similar education and work experience, and provide essentially the same services regarding each of their clients as completely separate contracts. The only real difference is that Jerry calls himself a freelance web developer whereas Steve has given himself the title of “Consultant” for his firm Omni-Global Web.

Candice, Rachel, and Tamara are the support staff for a new surgical clinic operating in a ritzy part of town and, with a particular budget, they’ve been asked to set up the website that will represent the clinic on the web. Since none of them have the requisite skillset to do the job themselves, they sit down and hash out what they are looking for and promptly place an ad seeking a Webmaster which outlines what the job entails and what demonstrable skills the applicants should have. Both Jerry and Steve apply with a concise and well thought out email along with links to various samples of their work. Jerry applies as himself, but Steve applies as Omni-Global Web and offers his own personal information merely as a point of contact. Both quote the same price.

When reviewing the various applicants, Candice, Rachel and Tamara describe their feelings about Jerry and Steve:

Candice (about Jerry): “I like his work, I’m just concerned that as a freelancer he may not be able to give our project the time and care that it requires. These Guys that work as agents for hire, I just find they’re grabbing at every job out there and don’t put their full effort into their contracts the way real professionals do.”

Rachel and Tamara feel that Candice makes a very compelling argument.

Tamara (about Steve and Omni-Global Web): “I’m really impressed. There’s something neat and tidy about this company’s work. I think they should be our first call and hopefully they’ll be willing to take us on.”

Rachel nods her head in agreement, and Candice assumes control grabbing the phone.

“Omni-Global Web! Steve speaking.”

“Hello Steve, my name is Candice and your company got in touch with us recently about providing us with services for our website and we were wondering if Omni-Global Web might still be able to help us out?”

“I imagine that will be possible, how about we set up a time to talk about what you need?”

Steve eventually got the job without any referral or previous business with anyone involved with the clinic, and Jerry never received so much as a phone call back. Even Steve will tell you that it wasn’t his finest work, but the clients were happy and they paid well and on time.

The Moral of the Story

The reason why Steve got the job (and subsequently paid) and Jerry didn’t is pretty simple, but says a lot about the people that hire contract workers and how they think.

First, Candice had a negative impression about what it means to be a freelancer, and her bias, no matter how unfounded, still earned merit with her peers as being valid. Second, the fact that it was a company, and not just an individual, planted the expectation in Tamara’s mind that there was a larger degree of legitimacy to the work coming from Steve. It didn’t matter who’s work was actually better, as both were capable of doing the job that was asked, but Steve and his title of consultant created a more acceptable framework in the minds of Candice, Rachel and Tamara. Lastly, the way Candice, Rachel and Tamara viewed how both Jerry and Steve might accept being offered the work was completely different. Candice had an image of Jerry attempting to gather up any work he could get as though, working for himself, he was just happy to have something to work on to pay the next few bills. When she finally called and spoke to Steve it was almost as though she hoped Steve would accept them as clients. To Candice, Rachel, and Tamara it would have been a privilege for Jerry to work for them, but with the way they viewed Steve it was a privilege for them to have him work on their website.

If you are a small business owner and you work for yourself it’s important to make these nuanced considerations to have any chance of competing in a market place where contractors are consistently bringing more and more diversified skills to the table. Never forget that how to market and promote one’s self is itself a skill, and the difference between freelancer and consultant, however slight in practice, can be profound in light of the expectation it creates in the minds of potential clients.

Slow Hire, Quick Fire

Anyone in charge of his or her own business who is not familiar with the term ‘slow hire, quick fire’ needs to let it sink in right away. On the surface it seems rather self-explanatory and just good common sense, but internalizing the mechanisms behind why this practice is so fundamentally important can often be overlooked. Below are a few key points to focus on when you may be forced to pull the trigger on any major personnel decision as well as a brief examination behind the rationale for each practice.

The Slow Hire

Every hiring decision is an investment. The idea needs to be that the return from their productivity exceeds the outlay to keep them on board – there is no point hiring someone who doesn’t make your company more valuable than it already is. Like a poker player sitting at the table, there is the old adage that you cannot lose what you don’t put in the middle. Hiring someone should feel like putting chips in the middle knowing that you can take down the hand. If you’re bluffing and praying for your card to land on the river you’ll find yourself short-stacked in no time.

Here are some points to consider before hiring:

1) Don’t let yourself feel pressured by time – A savvy manager will see the need coming down the road long before there is any urgency to actually hire someone. If you’re hiring someone just because you need someone right away there’s a strong possibility you’re not hiring the right fit for the position, but someone who is comfortable being the company silver medal.

2) If it doesn’t feel right, it probably isn’t – It can sometimes feel like the only option available is hiring the least bad candidate. There is nothing wrong with holding out for something better. The right person is out there, and sometimes it’s just a matter of possessing enough resolve to wait it out until they come along.

3) Can someone become the right candidate? – Sometimes you might find yourself with candidates that don’t immediately possess the needed expertise or experience required to fill a position, but may possess certain intangibles, such as the right drive and motivation that can make them an asset to your company. Always keep in mind that it’s easier to train someone how to complete a particular task than it is to train him or her to care about what they’re doing.

The Quick Fire

If someone is dead weight, they’ve got to go. It’s fine to be patient with someone who is still developing the requisite competencies to do their job, but if someone doesn’t have the right attitude, or fails to demonstrate the proper level of motivation that you demand from your employees, don’t wait around hoping they will change. There are plenty of eager people who don’t need to constantly have carrots dangled in front of them who would probably do a great job if given the chance.

Here are some points to consider before firing:

1) Is it even a job that still needs doing? – It’s not uncommon for employees, brought on to complete a particular task, to hang around long after they’ve become redundant. It’s never easy, but explaining that their services are no longer required can sometimes make long-term sense and might be in the best interest of your company.

2) Are they spinning their wheels? – The guy who comes to work every day, does nothing, and collects his pay just the same as the guy who works his butt off, is an all too common occurrence in many work environments. It’s one thing to streamline one’s workflow to optimize productivity allowing for more free time, it’s another to create free time at the expense of productivity. And as great as it is to come to work feeling relaxed, it’s a wholly other thing to show up at work in order to relax.

3) Are they a vampire? – Sometimes what can hurt a company has little to do with the specific competencies of its respective employees and can come down to a single employee’s bad attitude. Nothing can be more damaging to team morale than one person putting his or herself ahead of everyone else. There is no place for someone who sucks the life out of your company.

How to Hire Employees

Being exhausted from working around the clock driving your business forward can actually be a good thing. Despite the bags under your eyes, the gravelly voice, and potential spontaneous hair loss, all that stress can serve as a signal that your business has advanced to the point where it’s time to hire some help. As tempting as it can be to continue to assume all the responsibility for your company and reap all the financial benefits as well, it may actually be more profitable in the long term to surrender some of the immediate dividends and take back some of your days.

There are two basic paths to take when hiring someone:

The first, and most obvious is to hire an assistant. Any business has mundane components, or a series of tedious small jobs, that are seemingly unrelated to the main focus of the company. They include everything from answering telephones, sending out emails, filing, billing, laundry, getting coffee, etc. When hiring someone to handle all the jobs you don’t want to do, the goal is often to find someone who’s driven, pays attention to detail, doesn’t sleep, and is willing to work for less than they’re worth.

This method of hiring, especially at such an early stage in the growth of your company, is akin to exploitation and will further limit the growth of your company. The types of people who will end up working for you are those that simply need a job. The kind of employee you should be looking for is one who wants to work for you, not one who is putting themselves in a position of indentured servitude. The reason for the drawbacks with this method of hiring is due to the fact that it means that all the jobs in the company are accounted for. It might be effective to get by on a day-to-day basis, but a ceiling is reached the minute your employee becomes truly effective at their job. The net result will be a former employee who uses their experience at your company as a means to get a job that’s more meaningful to them.

The second method to hiring is to find a partner. Anyone who has seen Derek Sivers’ riveting TED talk from 2010 about how to start a movement knows that as the leader you’ll get all the credit, but the true catalyst to starting a movement is the involvement and commitment of your first followers. As Sivers points out, it’s important to embrace your first few followers, or employees in this case, as equals. When things began, you may have been the very embodiment of the company, but by embracing your first employees as equals, the focus now becomes the company and not the individual roles that are being filled within it. Suddenly, instead of all the jobs in the company being accounted for by you and your various assistants, new jobs are being born through the cooperation and vision of your close circle of followers.

So what is the key to finding a great partner?

The real trick to finding a great partner is to position oneself within reach of people that are like you, but with complimentary skills. For example, an audio professional might want to align themselves with an expert in film and video where suddenly you have a production company capable of offering an array of services instead of focusing on just one. It’s also important that they be at the same relative stage in their career so that you can both grow together without one feeling like they are dragging the other. And finally, your partners should hold the same core values when it comes to what they feel is important for the company to thrive – citing artistic differences as the cause of the destruction of a promising union has almost become cliché.

The very last thing to consider is how you attract the right people to your business. It’s important, regardless of the channels you use to draw attention to your company, that in the job description it clearly indicates that candidates will be immediately positioned at the same level, and be performing the same duties, as the founder of the company. Be forthright about your own abilities, your goals, and your expectations and make it clear to the people you decide to interview that their involvement in the company represents an opportunity to be a part of something that has the potential for real growth.

The net effect of this second strategy is not only having a willing partner who will help lighten the load in the short term, but also a friend who will take ownership of their role and nurture the company with the same care as you in the long term. 

Losing a Valuable Employee

What happens when a valuable employee resigns? First, don't panic.

After all, how many times have you moved from job to job? This is not an uncommon occurrence. Now that you're the boss you can't just throw a going away party and wish that person well.

There are certain steps you need to go through to make sure this is a smooth transition and everyone is on the same page.

Step 1: The Exit Interview

There should be no hard feelings when an employee resigns, especially if they are moving on to a different opportunity or opting to spend more time with their family. Just as you would with a client or vendor, you don't want to burn a bridge with a good employee. Who knows where they will land or if you might need them to consult for your company. If it is a situation where you know a competitor has made them an offer they can't refuse (and you can't match) let them know you appreciate their work.

Step 2: Recall the Non-disclosure Agreement

Hopefully, every employee working for your company signed a non-disclosure agreement before starting work. As they are leaving, it is a good time to remind them of their obligations under this contract. Technically, if they signed the agreement you don't have to remind them because it is legally binding. Just make sure they have a copy before they head out.

Step 3: Let the Company Know

When a valuable member of your team has decided to move on it won't be a secret for long. You still want to get out in front of the news by making some sort of official statement to the rest of the company either in an email, memo or announcement. Hopefully, there will be an opportunity for your former employee to train the new hire. You can also have that going away party to allow everyone a moment of closure. Then it's back to business.

Step 4: Ask For a Written Duty Log

The employee who is leaving might have taken on tasks you're not even aware of. It will be a big help if they were to write down all of their tasks and responsibilities. This is a document they can hand off to the person taking their place. This log should include all the usernames, passwords, email accounts and other company online access issues. This is another reason why you don't want to make this resignation awkward: You still need that employee's help!

Step 5: Call Up a Recruiter

You should know exactly how much time you have to fill the position. This doesn't mean you need to rush to find that new person. Put a recruiter to work to find the best candidate. Perhaps your old employee might even have a recommendation. If they aren't moving to another job, you can also leave the door open for future freelance work.

No matter how important this person was to your business, it's not the end of the world when they leave. You'll press on and might just find that a new member of the team is just the shot in the arm your company needs to take it to the next level. 

How to Find a Job Candidate's Social Media Profile

When a potential employee applies for a job they are hoping to present themselves in the best light possible. They are in charge of their own CV and behavior during an interview. However, if they will be hired to have a public role representing your company, you're well within your rights to do a deeper investigation into their online presence.

The thing about social media is that it's out there for the public to see. When it comes to tweets, comments and other types of public postings that job candidate can't expect those to remain secret. If you want to find out more about a prospective employee you can start with their profile picture.

Search By Image

A person who posts a profile will often use the same profile picture. You can find out where all those pictures have been used by installing Google Chrome. There is a easy to use extension plug-in called "Search by Image." You'll need to ad that app to your Chrome and you'll be good to go.

Once it is installed, all you need to do is right click the photo and use the "Search Google with this image" option. You should be directed to a page of duplicate photos. Each one of those photos can link to a different social media account where that profile picture was used. You'll be able to follow that person onto Twitter, LinkedIn or Facebook. If they have a blog or YouTube Channel you can also find a pathway to those accounts with the Google Image Search.

Keep in mind that this isn't an invasion of privacy. If someone posts pictures of themselves going wild at a bachelor party or hurling slurs in a comment section then they are being their own worst enemy. Just because you can post something doesn't mean you have to post everything! A person's discretion with their public profile says a lot about their character.

Expanding Your Search

Once you've found links to their social media accounts you can get a sense of how they interact in various forums. You can use this same tool to track information about your own company. If you have a product picture on your website that might have been snagged by someone to post in their own blog. Do they have permission for that? Are they saying disparaging things about your brand? If you discover something like that hopefully you can bring a quick end to the negativity.  

5 Steps to Hiring Inexperienced Candidates

There is a first time for everything. That includes hiring someone to do a job.

If you're lucky, you can find an employee who is well versed with whatever type of task you want them to perform. However, there is often the opportunity to hire an exceptional employee who doesn't have any experience related to your business.

But is it crazy to hire someone without experience?

You might discover that training a new employee from "the ground up" is the best way to get what you want out of that worker. In other words, they're not going to be approaching the job with any bad habits or preconceptions. They are a blank slate. And that can certainly work to your advantage.

Here are five steps to consider when hiring an employee without relevant experience:

Spell out what is expected.

Depending on the job, there might be a training manual or "to do list" approach to the job. This should spell out specifically what is required of that employee. If you need to, create a guide for an employee. It's always better to travel with a map as opposed to just a destination.

Enhance the skillsets.

There is a reason that you're considering hiring a person without experience. They've impressed you with their attitude, prior successes and possibly related skillsets. It has often been said that a good sales person can sell anything. Just because you're selling cars, but are hiring a top vacuum cleaner sales person, doesn't mean you won't come out on top. Play to that person's strengths and build on that.

Consider their complete resume.

Someone without a lot of experience on their resume could have other areas where they have excelled. These unique experiences can indicate how they'll perform on your team. For instance, a person who has spent a lot of time doing charity work could be a natural fit for customer service. Someone who was in the military will understand how to follow orders and have discipline. When it comes to resumes, go deep!

Put them to the test.

Captain Kirk was famous for reprogramming a "no-win" scenario test. He got a commendation for original thinking. You should try to find a way to put your prospective hire to the same kind of test. This doesn't mean building a starship simulator, but you can probably come up with a challenging test to see how they might problem solve. The best result would have them asking for help instead of trying to do something on their own and failing.

Put them on probation.

You're taking a risk by hiring a new employee without experience. They should know that up front. There is nothing wrong with putting that employee on a probationary period. Just don't make it a double-secret probation. They should know they are being watched and their job is on the line. 

3 Lessons Every New Manager Needs to Learn

There is a first time for everything. Your first bike ride. Your first report card. Your first car. Your first time

as manager.

For those first three, you probably had a lot of help from a parent, a teacher or an instructor. When it comes to taking over the reins of management, you probably learned as much from the bad managers as with the good managers you've had to work with.

Hopefully, those lessons will prove valuable as you move into this next chapter of your career. After unpacking your office and making sure they spelled your name right on the door, you'll want to consider these top three lessons every new manager needs to learn:

Not Every Employee Will Stick Around

As a manager you are taking responsibility for your team. You want them all to shine and live up to their potential. But guess what? For some they may decide that they will grow better at another company. There is nothing wrong with hiring personnel that you know might only stick around for a few years.

As long as they get the job done, they don't have to aspire to the lofty heights of the corporate tower. This means that you should embrace employee turnover. Mixing up the staff can be a good thing and keep everyone on their toes. However, for those team members who do excel you want to keep them around. It doesn't make sense to get rid of your heavy hitters.

Be the Boss in the Decision Making Process

A good manager will listen to their staff. Keeping those lines of communication open is vital to maintaining a productive work atmosphere. Yet, when it is time to make a final decision you need to become the ultimate "decider." It won't be uncommon for you to look around your conference room and find that the majority of your staff disagrees with a particular decision. If the workplace was a democracy this would matter. It's not and that's why you have to step up and pull the trigger on the decision. Sink or swim, this is what a manager does.

Be Friendly but Don't Be a Friend

Many companies are proud to boast that their workers are like one big family. While it is true that this can create big returns in terms of productivity it can also become a major hindrance. If tough choices have to be made about the direction of your company you're going to have an extremely hard time letting down "your family."

This doesn't mean you can't be friendly with your staff. In fact, you should. However, there is a vast difference between going out for the occasional lunch or happy hour and becoming so immersed with all the ups and downs of their private lives. It's always best to keep it professional. 

Should You Hire for Experience or Personality?

If all hiring was conducted strictly by reviewing resumes it would be very easy to make the best staff picks. You can quickly size up a potential employee's education and real world job experience by scanning their CV.

However, that won't necessarily provide you with the full portrait of that worker. That's why the in-person interview is a vital step in the hiring process. It's through the one-on-one interview that you can access the individual's personality and whether or not they'll be a "good fit" for your company.

All of this begs the question: Should you hire for experience or personality?

Building a Better Staff

If an employee doesn't have a specific skill set they can always be trained. That approach works best when the skills required have more to do with operating equipment or computer programs. When the requirement is something like sales or marketing, those skills might be harder to come by because they are personality based. Building a strong staff for your company means assessing your specific needs beyond the "I want to work with good people" idea.

A valuable employee needs to be equal parts dependable and a team player. The majority of folks who quit a job do so because they can't get along with a co-worker.

Is it their fault or the fault of the co-worker? How much of a role does personality play into that type of decision?

There is no guarantee that everyone you hire is going to get along and become the best of friends. They just have to work well together. However, there might be a slight edge when it comes to hiring personality over experience.

Putting Personality First

There are a few reasons why hiring an employee for their personality might be a benefit for your company. A staff member that gets along with others could mean they'll be sticking around.

A lower employee turnover rate helps increase productivity. If you don't have to take time out to retrain workers than you'll be able to focus on the tasks at hand. This idea of a productive team comes into play when there is room for advancement. Allowing for promotions within your company keeps the "family together."

The goal is to stick with the good hires and toss out the bad hires.

Every new hire means you're making an investment in that employee. Do you want your return on that investment to come back in the form of a good team member or someone who causes friction?

A person with an abrasive personality can still get the job done, but at what cost to company morale? You also have to consider your company's relationship with your clients and customers. Simply put, do you want the face of your company to be smiling or frowning? 

4 Tips for Startup Founders

The best business advice often comes from those entrepreneurs who have "been there and done that." Here are 4 tips for startup founders from startup founders:

Don't rush your product to market.

"It’s natural to be in a hurry to get product out the door, but take a breath first and really gauge where you are. Slow down when it comes to key decisions, said Dan Belcher, co-founder of Boston-based Stackdriver. Sometimes doing things too early is just as bad than doing them too late.

Do all the jobs first.

Think of this as the "Undercover Boss" paradigm. On that popular reality show, a CEO puts on a disguise and goes down to join the workers to get their perspective on things. Perhaps you should give this a try. "Founders should do every role first before hiring someone to take it over. This helps me understand who I’m hiring, what they should be good at, what they should be doing and how to measure their success,” said David Mytton, founder of Server Density which is a London-based provider of server monitoring services.

Be smart with your hiring.

This is solid advice because hiring before there is a demand for your product is a good way to run through all your working capital. That doesn't mean you shouldn't always be on the prowl for new talent. “You should always be interviewing and always be hiring regardless of your headcount plan,” says Stackdriver co-founder Izzy Azeri. “It’s so hard to find good people and the founder is always the best recruiter.”

Brace yourself for failure.

This doesn't mean you should expect that your company is going to go under but there will be times when things aren't going to work out like that should. That applies to whether you're selling shoes or developing mobile phone apps. Dan Foody is the co-founder of Cloze. They have created an app merges a user’s mail and social media messages. "Apple restricts developers to at most 100 beta test devices for any app. In today’s world that’s not nearly a large enough audience to refine an app (especially a consumer-focused one),” Foody said. “You need hundreds to thousands of beta testers. How can you avoid this pitfall? Build a web app first so you can learn the hard lessons up front with a wide audience without being restricted by platform and store limitations.”

When to Act Without a Business Plan

Runners line up at the starting line of a race waiting for that starter pistol to go off. If they start too soon it throws all the runners off. Hesitate after the starter pistol is fired and you could lose the lead.

Now apply this analogy to making a business decision.

Are you waiting too long after the "starter pistol" goes off or did you start running before it was time? The most effective business boss is someone who is decisive and gets the ball rolling by acting quickly rather than waiting for everything to line up perfectly.

Being decisive is not about being reckless. All of your decisions should be well informed.

When is it a good time to act in starting your business?

Renting Space

Every business needs a work space even if you're just starting out working from home. When your business takes off and you're ready to expand you'll need more space. If you are investing in a franchise business than location is key. You need to put together a list of requirements to make your business a success.

How many parking spaces will you need for staff and customers? Is foot traffic important to your business? Do you foresee expanding in the near future? How much space can you effectively use? What is your budget for renting space?

Once you have definitive answers and you find a space don't waste time; sign the lease.

It might need some cosmetic improvements or better air conditioning but if a majority of your requirements are meant secure the space before it gets away from you.

Hiring Staff

If you are interviewing for a staff position and have 12 applicants, interview all twelve applicants. Maybe the first person to come through your office is the one you'll ultimately hire but you deserve to hear from everyone.

Once you've completed all interviews, make that offer. Just because you've found the perfect match for your company doesn't mean some other business isn't interested in the same person. After all, if they are the best they will be in demand.

On the plus side, we're living in an age where instant communication can happen any time of the day or night through texts and e-mails. You should have all of those contact information for any applicant.

Marketing Campaigns

Your marketing strategy will be crucial to determining the success of your business. You should be presented with many options along with a clear understanding of the potential return on your investment. After you’re presented with the plans it's vital to put them into action ASAP.

You don't want to waste time mulling over plans when there are sales to be made and customers to attract.