This is short. I call it a ‘microblog’ post. I might expand on this at a later date but for now – here are 3 things I’ve learned from running a business:
- The amount you pay an employee has no bearing whatsoever on how well they will do the job. The amount you pay an employee does have a bearing on whether or not you keep an employee but I can tell you this: a $10 an hour employee is just that – regardless of what you pay them…and a $100k a year employee is just that – regardless of what you pay them. You cannot pay crappy people more money and expect a better employee. Conversely you can’t pay a $100k employee $50k and expect to keep them. I thought differently before I started my first company.
- Vendors and supplies – price and cost have little if anything to do with quality. I learned this mostly from watching my wife build her commercial janitorial company. I pushed her hard to buy the best supplies and use the most expensive vendors. She pushed back. She was right. The $42.99 vacuum cleaner at WalMart far exceeded the $499 commercial vacuum from a local expensive dealer. There was no contest. Ditto for many of her supplies. I’m not saying be cheap. Sometimes the most expensive IS the best – but most of the time that just isn’t the case. Be careful.
- Quality, Price, and Service. You can nail 2 out of 3 but you cannot do all 3. That’s a fact. No company has ever accomplished this so don’t kid yourself and think you can. Pick 2 and do the best you can with the third. Run as fast as you can from any company who claims to have conquered all three.
So – there’s a quickie post about some of the little things I’ve learned since starting a business.