Your Name, Company Name, Website
Jordan Harbinger,The Art of Charm
The Moment I Thought We Might Not Make It
We were mired in debt from bad investments made by a former business manager and some of the partners and employees were stealing clients and business behind our backs because they thought the ship was sinking. The company itself had split into camps, with each partner commandeering certain resources and groups of employees.
Our lawyer, CPA and current business manager didn't see a very bright future and neither did we. Stress led to malaise and the office became a horrible place to be.
How We Turned it Around
We first had to take inventory of who was loyal and who wasn't. This was tough and involved a series of very serious conversations with everyone at the company, as well as an assessment of who was actually carrying their own weight.
We orchestrated a hostile takeover of our own company with the help of outside legal counsel and our CPA. Presenting the other partners and employees with our level of debt versus income, most of them jumped ship and left the company. After they left, we removed anyone who we thought may be disloyal or hostile to the company mission, cutting overhead by about 80%. Morale went way up, and sales actually stayed stable for the most part.
Once the fat was trimmed, we were able to focus on moving forward in one unified direction, with an emphasis on customer/client service and increasing the quality of our products and services.
Our company is now stronger than before, with less overhead and a stronger public profile. Our show on SiriusXM satellite radio is more popular than ever, and our online properties are seeing a nice increase in traffic. The workplace is now a positive, fun place to work and projects are completed much faster than before. The future looks very bright for us, with many brand partnerships and exciting events on the horizon.
Lessons Learned
- Never hire someone because you need them at the time, and wait until you find someone who is a proper fit.
- Bringing people into the company for equity is not a good idea unless they're bringing in a lot of experience and/or funding. If it's your idea, keep the equity and give stock options, if anything.
- Having a democratic office environment is fine and dandy -until you need to get something done or make an unpopular decision for the good of the company. Make sure the hierarchy is very clear and people know that, although their opinions are valued, at the end of the day, the decision-maker has the final say.