New business owners must be careful with relationships

Editor’s note: Michelle Stockman is an independent consultant with her company, Fort Smith-based Msaada Group. Stockman earned a bachelor’s degree from Loyola University-Chicago in communications and fine arts, and earned a master’s in entrepreneurship from Western Carolina University. Her thoughts on business success appear each week on The City Wire.

Running a start-up business is hard. Finding, hiring and managing the first few employees is equally as hard. Finding the right balance of being the employer yet convincing start-up employees to “buy-in” to the business is stressful and extremely challenging at times.

Since start-up companies have less employee benefits they are able to offer the talent they seek to employ for the business, young business owners find they have to create new ways to energize and enthuse start-up employees for the business.

For many, creating a “family/friend” like environment offers the reward of management attention, affirmation and a casual environment where the employee feels like they have ownership within the business as well.

However, many entrepreneurs who create such a “cozy” environment for their new employees also run into trouble with the very employees who are needed to help the business grow. Often, the entrepreneur gets caught up in the business of running the business, while missing  key signs of employee problems. Like a biological family, many entrepreneurs go into denial about an employee problem until it becomes blatantly clear the problem is not going away.

While employee problems must be addressed as quickly as possible (in any business), entrepreneurs who have crossed the line from employer to friend often involve their emotions in dealing with employment problems. This tends to cause greater problems that often times results in legal problems between the two entities.

Creating a fun work environment where employees feel respected and empowered to do their best is desired, crossing the line between employer and friend is a fine line to walk for all businesses. Case in point, a small business in Fort Smith hired a new staff person to work a retail oriented position. Over time, that employee blurred the line from serving the company to seeking the company to serve this employee, which cost the business time, money and customers.

While adding the first employees to a business in any industry is an exciting time, maintaining the leadership of this company is equally as important to growing the company. Provide humble leadership to your company will allow the employee to feel appreciated in his/her role, energize the employee with the vision to achieve with the company and excite the employee to provide their talents for the company.

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Stockman can be reached at [email protected]