This newsletter series will give you insights and techniques to help you build a better business no matter how large or small yours is. I always say that success comes from working on your business as opposed to in your business. I want to share with you the systems and philosophies that have been successful for me over the years.

This is newsletter #35 in the series. If you have missed prior newsletters, and are enjoying the series, we encourage you to purchase the program. More information can be found by clicking on the coupon at the bottom of this page.

The management, supervision, training, and caretaking of employees are major factors every day for any business owner or manager. In the final analysis, it’s how well you and your employees perform that determines not only your profitability, but your survivability as well. Your employees are the foundation of your business and, with proper guidance, can be responsible for the success of the business. With consideration given to proper training and supervision at the onset, you can develop your staff in such a way that you can continue to operate proficiently, even at times when you’re away from the office for extended periods of time. If your business can't operate satisfactorily without you for two weeks, you’re the one that has plenty of work to do!

The test of a good manager is how he or she motivates and relates to their employees. How closely your company reaches its objectives depends largely on the efforts and accomplishments of your employees. You should recognize their desire to improve their position in life and increase their income. Know your employees as the individual human beings that they are. Find out what their goals are. Gain their respect by being fair and equitable to all. Establish a model of behavior by your own actions—it's called leadership! Let them know that upgrading and promotions will be made from within whenever possible, and keep this promise. Evaluate your employees on a regular schedule, perhaps twice a year, and express appreciation for good results.

Many ambitious employees have a goal to eventually establish their own business, and use their experience and training with you to prepare them. Perhaps that’s how you got your background training to start your own business. Although this is often a fear of management, statistics show that most individuals don’t have that ambition, drive or expertise, so you shouldn't use that unfounded fear to stop you from developing them. If you value the services of an employee who shows interest in going off on his or her own, you may want to use their talents within your organization rather than watching them become a competitor. Give them some of the benefits they would derive as an owner by offering such incentives as a share of the profits, health insurance for their family, and bonuses. Show them how they might be better off with increased income, prestige, recognition, community standing and respect without the financial problems and risks associated with the large majority of new companies that don’t get off the ground. Don’t vent your anger with employees who leave to start their own business. Leave the door open for them to return on a friendly basis. Call them after a reasonable period of time, and let them know they’re still welcome in your organization. Never criticize former employees in front of anyone, particularly your current employees.

If one or more of your customers go with an employee who leaves to start out on his or her own, then you haven't done a proper job with your customers or your employees. There are many businesses in all fields that train employees who then leave and take customers with them. Your business needs to be customer-focused, with processes in place that make service a company culture. The work that your company does, combined with customer service and follow-up make your company what it is, and it should be systems-based, and not people-dependent. Your role, regardless of who services the clients, is to make sure that you also have a personal relationship with each of your customers.

A note on moonlighting (for service organizations primarily)—accept it as part of the business because just about every field employee does it. But control it! Set the ground rules. No moonlighting for your customers. No using your tools and equipment (unless you’re willing to loan them). No using your materials (unless you’re willing to sell them). No using your trucks. Don’t let the employee get away with unapproved use of your facilities. Ask them if they must moonlight to at least not wear their company uniforms. Ask that they build up their own reputations, not borrow from you and their fellow employees who have worked hard to build up too. Let employees know their limits and what cooperation they can expect from you.

The following guidelines will help you establish a good relationship with and promote quality work from your employees:

• Don’t assume your employees know what you want. Explain what you want and provide training. Be sure they understand fully the task at the conclusion of training. Then have their supervisor follow-up to confirm that they are correctly applying the training they received.
• Set deadlines. Be realistic and maintain contact along the way to be sure that the schedule is being met.
• Get an understanding about what will be done if work isn’t satisfactory. You have a right to get the quality of work that you expect and the employee should realize what the consequences will be if this standard is not met.
• Treat the people you hire like adults. Treat them with consideration, thoughtfulness and understanding. Greet your employees each day, compliment them for appearance or accomplishment and, most importantly, listen to them when they speak to you.
• Pay on time.
• Reward good work either with praise, bonus, or increased responsibility, if desired.

The above content is extracted from Mike Holt's Business Management Skills Program.

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