How to Build a Business Others Want to Buy

Chapter 15How to sack someone (nicely)

Now that we've covered how to hire people, it makes sense to learn how to sack people. I hate sacking people. It's one of the worst parts of being a business owner. But with over 70 staff on the team, 1000 clients and many millions in turnover, the reality is that not every new hire works out.

If you're a business owner with serious ambitions to grow and sell your business, as you grow your team of A-grade players, at some stage you'll need to sack someone too.

I was terrible at ‘letting people go’ when I started out. I held onto them for longer than I should have, even when the business was close to broke. I was reluctant to have that awkward and uncomfortable conversation because I know the impact a sacking has on a person, their finances, their health and their family. As a result, I take sacking seriously, and I do it as sensitively as I can. If I have to do it, I try to do it as quickly as possible, or as soon as the situation comes to light. You do everyone a dis-service if you don't.

I remember a time when I should have acted more swiftly.

HIRE SLOW, FIRE FAST

I hired Shaun as our finance manager. We paid him an exceptional wage and had high hopes for him. He was a pretty fiery character but I saw that as ‘passion’. He started strong and built good relations with the customers, but from the get-go, his team members (and many of our A-grade players) weren't too keen on him.

My Chief Operating Officer, whom I trusted, said to ...