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4 Reasons Employing Relatives to Cut Cost Maybe Unwise

Young businesses begin with meagre resources and always on tight budgets. Sounds all too familiar? What problems do you know startups face? Well, one of the challenges they battle with is inadequate human resources for accelerated growth.

The dilemma here is, should you spend funds to attract qualified persons to take your business to the next level or compromise by bringing on-board family members and close friends to cut down cost irrespective of abilities?

In this piece, you are exposed to the down side of such a move from the contributions of membership of The Spirited Hub Facebook Community.

1.  Can you imagine losing control of your small business?

Starting a business gives you a sense of ownership of a growing entity that you must nurture carefully like a mother to her new born, in order to see it develop as you ideally have envisioned it. Relatives, may force you to make unwise compromises, affecting the smooth running of the venture. They may assume the company a family venture where you should not appear to have full control. If limits are not defined from the onset, you can be sure your grip on the business and where you want it to be will collapse.

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In the wisdom of @Asamoah Desmond, “I totally disagree. We don’t do business with family and friends. In rare cases we get friends and family members who discern deep into the mission and vision of the company. For control purposes it is not advisable.”

2. Employ only people who share your dream with expertise.

A new company is like building a new house. You need carpenters, masons, electricians, plumbers, etc. who are knowledgeable in whatever duty they are supposed to perform to complete the project. Every single person you bring into the business should be offering a service that they are good in thereby sharing in your dream even if they are relatives and cost cutting to introduce relatives can lead to duplication of strengths and leaving weaknesses unattended to.

“It is very dangerous engaging the services of family members to beat down cost. If you really want to build your business, then you need to employ people with that expertise or those who share in your dream. If a family member shares in that dream, you can employ him as well but not for the purpose of cutting cost.” –  @Asamoah Desmond

3. Spend time learning to Do It Yourself (DIY).

“Beating down costs is totally understandable but you should also keep in mind that something that may be expensive today will save you a lot of stress in the future and hiring someone who may not be an expert just to beat costs now may cost you more down the line. You should also bear in mind that relatives don’t always work well and may slow you down to get things done. The best thing to do is this: whatever your business needs, learn to do it yourself in the beginning. As you grow, you can delegate to someone who is an expert. It’s really difficult but in the end you will know much more about every aspect of your business and make better decisions about where to improve. You will also earn the respect of those who work with you because they know that they can’t tell you stories and if they don’t do it you will just do it yourself and get rid of them.” – @Edem Kumordzi

4. Ultimately, you will spend more remedying the mess.

“No! My principle: Don’t Employ Family Ever! You have already failed if you start thinking that you can hire people regardless of their competencies.” Follow a little analysis.

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“$20 diesel is more than $50 petrol. So I buy $20 diesel for my petrol consuming generator. I have been trying to spark it for an hour now. I call in an expert to help me spark my new generator and it so happens that the diesel has made the generator faulty somehow and now, I have to spend the following to get it fixed:

  • TNT to and fro the repair shop = $20
  • Workmanship for fixing = $25
  • Petrol = $50
    Total = $95 plus the $20 I already spent on the diesel = $115

So I end up spending $65 more because I employed the services of diesel regardless of its competence to beat down cost as against spending a $30 more to buy petrol because that is what my generator needed in the first place.” – @Nora Delali Kumahor

With these said, if you are considering employing a relative to help you start and run your business do a proper analysis of how beneficial this move will be in your best interest. Good luck!


Credit: Membership of TSH Facebook Group.

Are you convinced and what is your take? Leave your comment.

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ARTICLES

How Entrepreneurs Can Spot Opportunities In COVID-19 Pandemic?

opportunities in covid-19

Notwithstanding the worldwide COVID-19 pandemic, entrepreneurs need to confront another reality: that it isn’t just a gigantic clean and wellbeing crisis influencing millions, or even billions, of individuals across the world. This is likewise inciting an extraordinary plunge in the worldwide economy. But there are opportunities in covid-19 crisis.

The public authority, general wellbeing and financial reactions are immensely extraordinary on the off chance that you are a business person. As business originators, you will likewise require totally different activity designs set up contingent upon your area and industry.

On the off chance that you are in web-based shopping, food conveyance, video gaming or video conferencing ventures, where the business is as of now blasting, it’s a totally unexpected picture in comparison to in the event that you are maintaining a business in the lodging, café, retail, amusement, or sports enterprises.

Those entrepreneurs in COVID affected areas should be prepared to lose half to 80% of their turnover, just as a significant part of their market esteem.

opportunities in covid-19
Spotting opportunities in covi-19

Where would entrepreneurs be able to discover opportunities in covid-19?

Opportunities in covid-19 are all over — entrepreneurs need to realize how to remember them to hold onto them.

Prior to diving into market research, ask yourself this inquiry first: “What do individuals need during a wellbeing and monetary crisis?” The main pieces of information are in the words “wellbeing” and “financial.” Then ask yourself, “What aptitudes do I have? What aptitudes do I need or need to learn?”

To begin revealing the requirements of the market, go on the web! There are such countless extraordinary instruments accessible to help check what the market needs. Yet, continue with alert. We actually don’t have an away from of what the enduring effects of the pandemic and monetary aftermath will be, yet entrepreneurs can begin little and scale as they see accomplishment in their new specialty.

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Here is a snappy rundown of where to contemplate the market to reveal opportunities in covid-19 pandemic:

  • Google Search Trends
  • News Reports
  • Economic Reports
  • Climate Reports
  • Health Reports
  • International Trade Deals
  • Emerging Global Markets
  • Technology Acceleration and Innovation
  • Local Government Resources and Grants

Seeing how organizations and governments move can serve to ensure you actually and monetarily as we as a whole explore unknown waters. Likewise, with any venture opportunity, entrepreneurs should have enough monetary assets to develop while controlling the outpourings and boosting their inflows of income to endure.

As we see today, any business that gives an answer for help keep the lives of the populace running while they stay in segregation is a demonstrated plan of action that works.

Here is a fast rundown, in no specific request, of the top items and administrations where cash is at present streaming:

  • Masks, Personal Protective Equipment, Hand Sanitizers, Temperature Devices, etc.
  • Home Essentials and Improvement
  • Hospitals, Medical Laboratories, Pharmacy
  • Home and Food Delivery Services
  • Grocery Stores, Tech/Office Product Retail
  • Blogging, Influencer and Digital Marketing
  • Online Education and Virtual Services
  • Website Design, Coding, Software as a service (SaaS)
  • Curriculum Design,Professional Writing, Editing,
  • Logistics and Transportation Companies
  • Trash Collection, Laundry Services, Landscaping
  • Hardware Stores
  • Security Services
  • Utility Services
  • Janitorial, Cleaning and Disinfecting Services
  • Pet Products and Services
  • Home Beauty
  • Entertainment and Gaming
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An opportunity to search for opportunities in covid-19 is currently. With any additional time, a business visionary can chip away at reconstructing a site, make new frameworks, converse with clients, overhaul hardware and make new item contributions. Another proposal is to exploit distant work. It is more secure, more profitable and can accompany more pay and more noteworthy way of life adaptability.

Each crisis is an opportunity

Remember that the absolute generally troublesome or fascinating organizations have been made and took off during seasons of crisis.

It is in every case great business practice to tune in to what your clients need to reveal opportunities from inside a current business. Entrepreneurs who effectively study the market will have a preferred position in taking advantage of lucky breaks in the steadily changing scene of our economy.

opportunities in covid-19
The numbers can be scary but there are opportunities in covid-19

After the COVID-19 crisis the exercises to learn are:

More restricted travel of products and individuals, eminently business explorers (more far off working and far off gatherings) because of the effect of physical removing necessities. We should factor in future clean emergencies or even new battles because of worldwide congestion.

The possible development in “dematerialization” of items and administrations: for instance, we could observer a blast in 3D printers to create covers and ventilators in every nation.

Greater readiness incorporate dynamic: for instance, we’ve seen organizations like Apple changing their activities essentially overnight to configuration, produce and boat face shields for medical specialists.

The ease item sourcing model, where China and India are the world’s producers, will be finished. Globalization too. This crisis will change the connections among nations and states: introducing new difficulties, new stakes, new perils, new dangers (wellbeing and atmosphere).

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Governments should, and will, request to be free and self-ruling concerning basic medical supplies and medicines. We can figure out how Korea, Singapore, and Taiwan have quickly contained COVID-19, however, their populaces are prepared to acknowledge individual following and facial acknowledgment innovations which are not yet worthy in different social orders (a lot of Europe for example). A world less open and, presumably, less free is not out of the ordinary.

With virus control prone to continue in numerous pieces of the globe, we’ll see without a doubt better approaches for life delivering new necessities, which will thus make new opportunities for entrepreneurs. Some new plans of action, new proposals around dematerialization, should be imagined.

In the coming years, the new lord of the world will be the “Amazon of dematerialization”. Also, it will be the entrepreneurs who will execute this new world.

Author Bio

Rahul Raghuwanshi is an SEO specialist and SEO Content Writer at Special Oilfield Services. Special Oilfield Services is one of the leading oil and gas industry maintenance and solution provider based in Oman, UAE.

We provide optimal drilling and completion, vibration monitoring and analysis, mechanical and reliability asset management, chemical solutions, and drilling and completion services along with reliability and asset integrity services, to oil and gas in all over the globe. With our latest and most advanced techniques we deliver best results to our customers. For more information visit our official website speciloilfield.com.

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