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.
18 Feedbacks on "Should you hire relatives?"
Patrick
Im not good in doing any business. Medyo malambot ako sa tao and I am too trusty a person. His word is enough for me to convince myself that he will be true to it no matter what the consequences may be in the end even if that person is just lying. It’s because, I am like that. When I say something, I keep my word to the dot! Besides, I do not have that much money to be able to put up a business. Anyway, your article is good. Direct to the point and true. Most of the time, if you help someone, they tend to abuse it or do something stupid because they think that they will be able to squeeze their way out of it due to your relationship with that person (a relative or a close friend). It’s you who will lose in the end and not them.
pinoy investor
I hire relatives not bec. they are relatives but bec. they are competent & trustworthy. Businesses are built on trust. I sued a businessman for wrongdoing. It was time consuming. I won after 3 yrs of litigation. It’s not worth the trouble. Better to just deal with people you trust.
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Tikbalang
I don’t think I would hire relatives. What if they do not work out and you had to fire them? What happens to your personal relationship? It is a tightrope act and if I could avoid it, I would.
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pligg.com
Should you hire relatives?…
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….
vangie
I am an ofw for past 14 years and happy to say that i’m going home, for good on oct. 27th. 5 years ago i opened a small business in my home town with my 3 sisters and my parents looking after it. I am very lucky and blessed because they are very sincere and its doing good. A year ago, we decided to opened another type of business because of reason, not to put all the eggs in one basket. We hired relatives too. I trust them and they know how hard my job here as an ofw. In my case, its not my own siblings that i can’t trust, its the people not related to us.
Jose Escalora
Why not? I have a small business and all my employees are related to me. They are trustworthy and understanding. They are willing to work an extra mile for the good of the business. As long as you treat them well and fairly, there is reason why they could not be trusted. Almost all Chinese businesses are operated or run by a family. They are doing well if not very well in the Philippines.
Jose Escalora
Why not? I have a small business and all my employees are related to me. They are trustworthy and understanding. They are willing to work an extra mile for the good of the business. As long as you treat them well and fairly, there is no reason why they could not be trusted. Almost all Chinese businesses are operated or run by a family. They are doing well if not very well in the Philippines.
bob
it’s a case to case basis….its how you manage people counts most.
Salve
Patrick, I feel for you buddy. It’s hard to be always trusting, though, especially when you’re trying to nurture a business because when money gets into the picture, the wolves in people come out. This makes me realize that part of becoming a successful entrepreneur is to have good discernment of character.
Salve
Pinoy Investor, it’s not just worth the trouble, it’s not worth the time. I hope you recovered all your expenses. I heard that going to court can be really expensive.
Salve
Tikbalang, you described it very accurately — a tightrope act. Personally, I think I would, but only if the person is worthy of being hired in the first place.
Salve
Vangie, good for you! I hope it works out really well. October 27th is almost around the corner!
Salve
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.
pinoy investor
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.
salve
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!
pinoy investor
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!
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