Reader Lily Ann wrote a very interesting comment on my post last Monday on “Why many OFW families’ businesses don’t thrive.”
I’m a full-time entrepreneur myself having just quit my full-time job in a corporate world (though still working part-time in the same company upon their request) recently.
I could say that for any business to thrive, the owner should be hands-on. Otherwise, everything will turn into dust. Simply because of “kawalan ng malasakit”. Why should people even (own relatives) sacrifice on something he/she did not spent a single sweat? Hindi naman nila pinaghirapan iyong perang ipinuhunan, so why do they care kung malugi? It’s only the owner of the capital who will really care and get hurt when business suffer.
I employ my own relatives in my own small business just for the good intention of helping them earn a living and stay away from idle lives - sort of give a man a fish and you just feed for a day, but teach a man how to fish, you feed him for his entire life, but nothing happened. I ended up the bad guy and the whole clan talks about me when I dismissed my cousin from my employ due to wrongdoings and abuse. They have even become the thorn in my flesh.
So, I realized, good intentions is not enough. You ned to protect your hard-earned money invested in the business.
So, my suggestions to OFWs who wants to have a business as additional source of income (which should be) in preparation of their retirement from working abroad, do a business which you can do by yourself wherever you are. When you are finally ready to jump and take the risk to the unpredictable journey of being an entrepreneur, that’s the time you plunge into a full-time business. At least, when you failed, you can still say head on, that you tried. Then, try another one. That’s business. As I told my friends, “if you are not ready to die”, don’t go into business, coz there’s a lot of nightmares - from the staff, to the clients, suppliers, the government red tapes, especially, etc.
Read the entire comment here.
Hire someone – relative or not – based on his attitude and integrity. Perhaps he doesn’t have the experience or the qualifications, but if he can be taught and if he is honest and has the drive, then you have a gem on your hands. Otherwise, fire him: relative or not.
At the end of the day, coddling someone just because he or she is a relative can do more damage to that person, not just to the business. It may turn out to be the kindest thing you can do.
October 24th, 2007 at 12:13 pm
I’m not an expert on law. I can only share my experience. Most important thing is to be on the side of the law. Meaning you’re following the law, it’s the other party whose violating the law or a contract. You have to come clean.
Amicable settlement is okay if it’s fair. They tried to settle when they realized they would lose the case. We declined bec. their settlement offer was less than what we would get if we win the case. They had a good lawyer but they lost bec. we were on the side of the law. They tried delaying tactics hoping we’ll get tired and give up. They tried forum shopping but the judge rejected it.
Litigation is costly. It’s good our lawyer was pro bono. After we won, we offered him payment. He declined. Thereafter he became a city prosecutor. Good karma!
October 23rd, 2007 at 2:23 pm
david versus goliath ha. i hope you can share here some tips about the mechanics (and cost) of going to court — of course with the caveat that it’s better to avoid it. i was in a class before with several judges (on corporate governance) and really, its amazing how courts in the Philippines work!
October 23rd, 2007 at 1:33 pm
Salve, yes we recovered all our expenses plus damages. We actually got more but it’s not worth the hassle. The businessman was rich and his lawyer was de campanila. My wife and I were just starting a small business and our lawyer was pro bono. I’m glad justice prevailed.
October 18th, 2007 at 7:00 pm
Jose Escalora,
You’re right about the family-run businesses of Chinese-Filipino entrepreneurs in this country. But it may be foolish to lump people into two groups of relatives and non-relatives. The better analysis is whether they have the skill and the ethics to be part of your company.
October 18th, 2007 at 6:59 pm
Vangie, good for you! I hope it works out really well. October 27th is almost around the corner!