This is one of the reasons why I tell all of my students who are working their Aggressive Income Strategies (via a home-based business, preferably) to avoid having a staff (employees) at all costs for several reasons:
#1: Different personalities = different results of what you'll get from work ethic to personality "meshes" (or clashes). And to find someone that perfectly "blends" while sustaining an acceptable work ethic is equivalent to finding a single person out of a 10,000,000 prospective employee haystack. Most of the time you'll find these people eating away at the clock while they chat endlessly about their weekends (either the past weekend, the upcoming weekend, or both) or texting their friends/family...all on your dime, of course. And if you do happen to get someone who is actually working on the clock, you'll be lucky that they aren't screwing something up.
#2: Liability. This is a strong work that indicates a variety of things from wondering if your employee will rip you off (now or later...and how little or how much) to a potential lawsuit for a variety of things (from wrongful termination to Worker's Comp to something out in left field like sexual harassment). The other liability factors fall into the not-doing-their-job-correctly category which can result in a customer getting hurt in some way (physically or financially), which you sustain the liability for. Or, even worse, hurting the integrity and reputation of the company you've worked so hard to build for years.
#3: Cost. To have an employee extends beyond what you actually pay them by the hour. A lot of people (who haven't had a business) don't realize that an employee costs a lot more. (And we're not speaking of the "liability" issues as discussed above.) Not only do you have to pay by the hour (whether they're actually working...or not) but you have to pay for Worker's Comp insurance, unemployment, and health insurance. So, add about 25% of what you pay them and you'll get a more accurate assessment of what you're actually paying them. This means that you're actually paying a $15/hour employee about $18.75/hour.
#4: Entitlement demands. This is when your employee feels that he or she automatically deserves more money just because they've been there longer. Forget about the fact that they never bothered to increase or bolster their personal skills such as taking a class in keyboarding (to type faster) or the newest Microsoft Office Suite or Quickbooks...or to improve their skills in any other capacity that I could potentially use to enhance my business. No. Just because they were sitting their dead ass in a chair longer than, say, someone else (i.e. a newer employee coming in) must mean that they are entitled to a raise. After all, we're Americans. We're automatically entitled to "stuff" and more money just because...just freakingbecause, I guess!
And my conflict with one of my staffers fell squarely into Item #4 above.
You see, I've had this one employee who started about 8 months ago. So, no, she hasn't been here for even a year. Yet suddenly, she felt she needed a raise. Fine. On Monday, I upped her an additional $1 an hour.
Fast forward to Wednesday...yes, this past Wednesday which was merely 2 days after the issued $1-per-hour raise, when this very same employee literally blows up at me for hiring an additional person who I will be starting at $2-per-hour more than what she's making.
Forget about the fact that this person has many more usable skills that I readily need to operate and expand my business to the capacity I'd like it to be at; these skills include being very apt with Quickbooks, tying much faster, and knowing all of the Microsoft Office Suiteprograms with great aptitude. (All of these things far surpass those skills of the complaining, self-entitled employee I'm speaking of.) Also, this new employee will be helping me build website and doing other online marketing that I need done, not to mention some of the "personal assistant" stuff that's been thrown to the wayside since I had to get rid of Cindy almost 3 years ago.
This whole nonsense about bringing in someone new "from the street," which she kept bitching about, makes about as much sense as someone working as a janitor for 21 years for the same company bitching that the newly hired CEO is making $500,000 per year more than he is.
Uh...let me break it down: different skills + different job description = different pay.
Seems pretty obvious to me...and probably to you. But it wasn't to her.
Then it made me realize..."Monica, what the hell are you doing?"
All of you know that I'm in my "shut down mode" right now. My "I Quit" date was December 31, 2013. My "shut down" period was to extend to my 40th birthday which is this coming June 14th.
But I have one other little complication that's bringing me to having to wait until December 31, 2014 for my real "I Quit" date. And that is the lease on my office/warehouse space here in Valencia, California.
I don't like backing out of contractual agreements or doing the midnight-move-out plan where I stiff someone on an arrangement I made with them. (I believe that brings in bad karma and negative energy that I just don't want right now.) So, as I continue cutting back mentorship groups, consulting, and other things that have been taking up a lot of my time, I realize that I've already been in "shut down mode" since the lateral part of last year.
I've also found myself focusing on the things that are truly important to me including writing and real estate investing.
Then, I asked myself a question. "Why do I need an office, overhead, and a staff when I could lose all of the above and double my monthly profits?"
Yes, it's a rhetorical question because the answer is pretty freaking obvious.
I kept hanging onto this office because of fear. Fear of letting go. Fear of not making the right decision. Fear of what my employees would do without a job here.
And now the fear is gone. It took a blow up with an employee for me to realize that my days of running the shop are long over.
Now, the problem for me has always been how important my students are to me. This is why I keep training. Then I realized..."What the hell do I need an office and employees for to keep training and teaching my students?"
I don't need an office/warehouse and the stress of dealing with a staff to continue giving you guys and gals the information you need to continue building wealth.
With that said, I've decided that I'll be shutting down my office/warehouse this coming December/January (when my lease ends). My other company (Brie Labs) will be moving to its new home in Detroit, Michigan. I have a warehouse and a kick-ass office manager lined up (who I personally won't be managing). (I've even more recently considered shutting everything down on September 30th, 2014 while paying off the remainder of my lease until the end of the year as an effort shorten the misery of this huge overhead burden just a little more.)
And I haven't been this f****** excited in a very long time!!!
What does that mean for my awesome students?
I've decided to carry on with my trainings and information to keep you on track with what you need to do to build wealth with both Aggressive and Passive Income Strategies but I'll be doing this on a smaller scale.
Truth be told, I can't live without my students. You guys and gals give me a purpose and meaning for being here on this planet. I enjoy showing people how to build wealth. I really get a kick out of helping people change their lives.
And I never want that to end. Period.
But, because of the stress of having the overhead I have (staff, warehouse, etc.), it's been bleeding my energy dry and zapping all of my enthusiasm to do the things I really want to do with my students. The moment the energy-zapping stuff disappears, I'll be able to give you the enthusiasm, energy, and even more kick-ass strategies to drive you to the financial future you've always wanted for yourself.
So, this is a benefit to both of us. This change will benefit me and you.
With this change, I'll be able to offer more free videos, reports, audio seminars, and mini-courses as well as super low-priced (yet high quality) information products for you to continue on your path of building both Aggressive and Passive Income.
And I can't wait to be able to do the things I've wanted to do for my students without any of the office politics and the stress that I've been going through for the past several years with Global Success.
So, what do you get to learn from all this?
As I mentioned many times before: start a business and/or do your real estate investing activities without having your own employees and without having overhead. Period.
And the only way that I know how to pull this off is through a highly successful Aggressive Income home-based business and Passive Income real estate investing, preferably with multifamily properties.
There's something I want you to listen to in reference to the Passive Income side...
Here's the link: http://www.monicamain.com/abcfs_2015
I'm revealing my most powerful Passive Income Strategies for our New Economy in this audio seminar.
See you at the top!