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How to Run A Service Business

Last week, I went to a php Meetup and had the opportunity to talk to someone running a successful online marketing and web development business. As one of my most recent projects is starting my own web design business (you can check it out at www.webdevelopersetc.com), we discussed some things about hiring and managing employees.

Even if you are just starting out, if you really want to grow your business, this is a very important topic. Most people think that if you just give people money for their services, then it’s enough. But here are a few tips to get the most out of your people.

Treat them like family

People like to be treated well and recognized for their hard work. The guy I spoke with last week takes the time to get to know the people that are working for him, even if they are offshore, including asking about their lives and families.

Many inexperienced business owners just want the job done in exchange for offering payment. However, taking a little time to bond with your people can create a greater sense of loyalty and job related pride.

Pay them more than average, if you can

A lot of jobs both in developed countries and offshore don’t pay that well. If possible, paying better than average will let your employees know that you are a good employer to work for. If you can’t pay better than average, then you probably need to focus more on your marketing.

Encourage Self Development

Employees that develop themselves will become better, faster, and improve your company’s performance. One trick is I learned was to  encourage them to take certification tests to develop their skills. If they pass, then the company pays for it, but if they fail, then they pay.

Free certification is always a good thing to have on your resume, so this encourages them to study and prepare for it. The employer I spoke to also said he allows two tries and usually his people pass the test the second time if they didn’t make it the first time.

A Few Other Tips

1. Sometimes things will go wrong and people will make mistakes. Keep your cool and try not to take your anger out on your people. If the person you hire fails to produce the results you want on a repeated basis, then you may have to let them go. But always be civil and professional throughout the whole process.

2. I like to give people paid test jobs before hiring full time, particularly for offshore or virtual workers. This allows me to see how they work and any potential issues that may arise. You can learn a ton that you wouldn’t expect from doing this versus just interviewing. In fact, some of the worst interviewers turned out to be the best workers and vice versa.

3. Be aware that there are some disadvantages to offshore outsourcing as well. Power can go out, internet connections can be slow, and there are also cultural and language differences. The time difference can also be a challenge. The biggest plus side is skilled labor at a more affordable price.

4. Sometimes it’s better to hire a US person at a higher rate. Writers is one good example as it is harder to find offshore writers who have good enough English to write without constant editing. Also, sometimes people with higher rates can work a lot faster and more efficiently.

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About Brian Liang

I've been making a living online since 2002, mostly through e-commerce sites and content sites with advertising. Through the years, I have also learned a lot about other types of businesses and helped other people with their business problems.

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THANK YOU for SUBSCRIBING
Join the Small Business Ideas Blog Newsletter to stay updated and also get access to member only downloads and content, including special reports, studies and articles I write on other blogs. Some member bonuses include:
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  • Study: How LinkedIn Publishers Get Featured on the Pulse
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