What makes some businesses thrive, while others just get by? There are many reasons, of course, but there is one that I come across more than just about any other.
People.
Having the right people can supercharge your studio business. Having the wrong people are like trying to drive with a flat tire.
At some point, most yoga studio businesses need to hire help. This may be an independent contractor or an employee. Regardless, you are going to pay money for specific results. For example, if you hire a web site design company to create an online store for you, what do you want? You don't really want a web site, you want to make more money (presumably by selling things online). Always keep the overall goal in mind. If an area of focus arises that is not going to generate more revenue, then let it go. Hiring independent contractors is very similar to hiring employees in many ways, but different in others. Here's the quick summary.
Keys to hiring good people:
Hire people who have experience doing what you need done. There is a saying that goes ?Raw intellect is a poor substitute for practical experience.? For example, a who never graduated high school will do a far better job fixing you car's engine than a person with a PhD in automotive engineering who can theoretically design an engine. .
Avoid ?I don't know, but I learn quickly? people unless you are sure you are prepared to train someone. Better to pay more for someone who will take 25% of the time and do a better job. There is a saying that hold true here ?It only costs twice as much to go second class.?
Always check references. I've reviewed hundreds of job applicants over the years. It still amazes me how often references don't agree with what they applicant said, or that when pushed for references, the applicant suddenly vanishes. No matter how great someone sounds, ALWAYS check at least 2 references.
Know what you need them to do and put it in writing. Take the time to clearly define for yourself (and for the applicant) what you expect from them. Feeling overwhelmed and just needing someone to help with ?whatever needs doing? leads to problems later on. Putting things in writing is critical ? it avoids misunderstandings, and also protects against being cheated.
Know if they need to know more than you. If you are hiring for a position where you expect to show the person how to do the job (like filing or data entry), then be prepared to do this. If you are hiring for someone to do something that you don't know how to do, or don't want to teach, then make sure they know it already. For example, if I hire a bookkeeper, I want them to know more about it than I do.
Avoid hiring people who want to be your buddy. You are hiring to get a job done ? people who expect social relationships often end up being problematic.
Avoid negative, cynical or critical people. They are like the plague in a business ? their negativity will spread to others and can undermine a company. If someone is critical or especially pessimistic in an interview, run, don't walk. You don't want them working for you.
Avoid emotionally needy people. Care for them, befriend them if you like, but don't hire them. Large corporations have employee assistance programs. Small businesses just suffer. Avoid the problem by not making it yours.
Avoid people who have a history of not following through. It will usually be shrouded with excuses, but if you find someone who repeatedly seems to have failed or unfinished projects, move on. You don't need to know the reasons ? there is someone else out there for you who somehow did get the job done.
Avoid dishonest people. I always like to ask a question that I know they don't know the answer to, and hope they say ?I'm sorry, but I just don't know?? If they try to fudge their way through it, they will do that on the job. It's no fun finding out halfway through a project that the person really doesn't have a clue what they are doing, but misled you into thinking they did.
Just for independent contractors hired for a specific job:
If at all possible, hire someone who will give you a bid/quote for the whole job. Avoid people who want to get paid hourly. An experienced contractor knows how much to charge, an inexperienced one figures it out on your nickel. For example, if you hire someone to create a web site for you, an experienced web designer can easily quote you a price. If someone asks to be paid hourly, they probably don't know how long it will take them because they've never done one like it before.
Avoid paying more than 50% up front (unless you have high confidence in the contractor based on past business with them). If it's a large amount, pay in stages, based on phases of project completion. Only pay the balance when the job is complete.
Avoid people or companies with cash-flow problems. You don't want them asking for more money or going out of business before they finish your job.
In Conclusion:
Keeping these keys in mind when hiring will do a great deal toward keeping your studio business running smoothly, and help to avoid many problems. Hire the right people, and implement the right systems, and you will be well on your way to a smoothly running business that lets you earn more and work less. For more information on hiring or on systems, you may find our studio business workshops of great value.
Coach Al Lipper
Business Coach for Yoga and Tai Chi Studios
Destiny: Success
Website: http://www.CenteredBusiness.com
Email: coach@centeredbusiness.com
Telephone: (805) 544-3938 Coach Al Lipper of 'Destiny: Success' helps Yoga and Tai Chi studio business owners smoothly run and expand their studio business. He helps stressed and overwhelmed studio business owners who spend most their time wrapped up in daily business tasks, who can't handle any more clients, or who can't make any more money out of the business. Coach Al helps clients find new business strategies which result in generating more clients, increased profits, and more free time for the business owner. | |
