Employees steal your clients and start their own business.
Employees Steal Your Clients and Start Their Own Business
In the fast-paced world of business, especially in niches with high demand and low competition, the risk of employees leaving to start their own ventures is a reality many entrepreneurs face. Recently, I made the decision to launch my own business after a year and a half at an agency, and while I’m excited about this journey, I can’t help but reflect on the dynamics of client relationships and employee turnover.
The Birth of a New Venture
As I step into this new role, I find myself in a unique position. I’m focusing on a niche field in a multinational city, where I’ve identified a significant demand for services in one specific language. My goal is to build a team of talented individuals who share my passion for sales and business development. Together, we can capitalize on the opportunities in this market and grow our business.
However, the excitement of entrepreneurship is tempered by a looming concern: the risk that my employees may take the relationships they build with clients and venture out on their own. This fear is not unfounded, especially when a young entrepreneur like myself can demonstrate success in securing a significant portion of deals.
The Illusion of Client Ownership
One of the comments I received on my initial post stood out: “No one is stealing your clients. You lose the clients you work with, and clients are for everyone.” This perspective highlights a critical truth about business relationships. Clients are not owned; they’re partners. If you provide exceptional service and value, clients will stick with you. However, if they perceive that someone else is offering a better solution, they will naturally gravitate towards that option.
This sentiment is echoed across all industries. The relationships built between clients and businesses are often based on trust, service quality, and mutual benefit. If employees feel they can provide a better service independently, the risk of attrition increases.
The Reality of Profit Margins
Another insightful comment pointed out, “Lol you think you get to keep 80% of the deal. Running costs for tech, debt service, deals lost… You’re not keeping anywhere near 80%.” This is a reminder that while it may seem like a lucrative opportunity to retain a large portion of revenue, the reality of operating a business often reveals significant overhead costs.
In entrepreneurship, it’s essential to focus on the bigger picture: sustainability and growth, rather than just the immediate financial gains. If I manage my business effectively, I can create an environment where my employees feel valued and motivated to stay, rather than jumping ship for short-term gains.
The Nature of Ambition
Finally, there’s the undeniable truth that ambitious individuals will always seek to maximize their potential. The comment, “It’s a tough one; naturally, the ambitious ones will always want a larger % of the billings they bring in,” encapsulates the drive found in many professionals. Whether in recruitment, consultancy, or accounting, the journey often involves learning from the best and leveraging that knowledge for personal growth.
As a leader, it’s crucial to recognize this ambition and find ways to channel it within the organization. By offering competitive incentives, fostering a collaborative culture, and providing opportunities for professional development, I can create a workplace where employees feel fulfilled and less inclined to leave.
Conclusion: A Slice of the Cake for Everyone
The final takeaway from the comments is that there’s enough opportunity for everyone to succeed. “I think there’s enough to go round for everyone to have a slice of the cake.” This optimistic view encourages a mindset of collaboration rather than competition. By fostering a culture of shared success, where employees feel they are part of something larger, I can mitigate the risks associated with potential turnover.
As I embark on this new journey, I am committed to building a business that not only thrives in a competitive market but also values the contributions of each team member. After all, entrepreneurship is not just about individual gain; it’s about creating a legacy and empowering others to achieve their potential alongside you.