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My first Employee

Posted by derekmajor on Feb 3, 2012 in Entrepreneurship

I can’t say that hiring an employee was the easiest and most thought out process during the first run.  It was actually a bit scary and I certainly knew I needed a bit of help.  In the fall of 2008 I brought on my first contractor who eventually became an employee of the company.

I have to admit I was extremely fortunate to bring on the person that I did.  He was by no means the most technical person when it came to managing computers but he was certainly a very creative person which showed in a lot of web work that we did.  I wasn’t really ready to have an employee in my world at that point but we ended up working together for a good 1 and a half years.  Many ups and downs, but also many successes.  It’s too bad we left on bad terms since I still have a lot of respect for him to this day.

Hiring your first employee should be a thought out process.  It took me almost 3 years to find the perfect person to come work for Eligeo, who has since become a business partner.  Back when I started the company everybody said to avoid hiring friends and family.  So I did exactly that and went through a lot of people I never knew until the hiring process.  I went through a lot of good people throughout but there was always issues that I ran into whether it was commitment, level of mentorship required or simply work ethic.

The first employee I hired was simply the wrong person.  I wasn’t entirely settled on the business model for the company but he was incredibly loyal to me as I was to him.  I worked hard to make sure he was always paid appropriately and did so at the expense of my own salary most times.  But the problem was I was building a tech consulting company, not a web design firm.  His expertise was web design.  I had him in the wrong job and not only that he was very young so he needed more mentorship than what I would be able to provide as a new business owner.  I felt that I failed him in his path to success.

When we finally parted ways it was during a period that became one of the most critical in the 5 years of running Eligeo.  We had experimented in building our own CRM product but ultimately abandoned it as it really wasn’t what I was trying to build in a business.  We went quickly to 5 employees and quickly down to only me in a matter of months.  I attribute this suddenly change in some bad business decisions and personel decisions.

From this point forward I got smarter.  I went back to the drawing board on the business and re-focused a lot of the business model.  This was all happening in 2010 when the re-structuring occurred.  I brought in some good friends to help out throughout the year and the business model was starting to take shape.  We were finally becoming a very solid I.T. business.

I learned that hiring friends wasn’t such a bad thing at all.  The employee I mentioned in the second paragraph is Karim who has since become a valued shareholder and partner in Eligeo.  He not only brought expertise and knowledge to the business but he finally set us on the path to building my vision that I had started working on earlier that year.

I also learned that the process to hiring people you don’t know changed as well.  I actively sought out a variety of resumes from different resources and I learned to evaluate people a lot differently and objectively than I had ever before.  We have now a real strong team of individuals that are helping make this company a real success into the future.

To close off, here are a few points:

  • Hiring friends and family can be risky, but if you have trust issues like I do, sometimes it isn’t a bad thing.
  • Learn to evaluate talent either through third party resources (recruiters) or by picking up a book to learn how to evaluate talent.

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