Hiring operator on day 1

May 14, 2024

by a searcher from Columbia University - Columbia Business School in Washington, DC, USA

Hi all,

Found a GREAT business but it's on the west coast (I'm on east coast). It's a simple business with only 3 employees that does light manufacturing (i.e. assembly) and B2B e-commerce. Thoughts on hiring an operator from day 1?

I would not relocate but would likely be in person 2 weeks a month for the first 6 months.

Is this a recipe for disaster?

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Reply by a searcher
from University of Virginia in Los Angeles, CA, USA

Like Ted said, it is completely situational. But here is a cautionary story. An active founder who tries to manage in-person alongside a full-time operator - that is potentially too many cooks in the kitchen. I worked as a COO with a CEO and an owner who would come once a month and give everyone new directions. A different size of a company (80+ employees), but these monthly visits were disruptive. People were forming camps to win the favors of the CEO vs. the owner, and going behind one's back to the other if they didn't like the directions they were receiving. If you want to be in-person 50% of time, set very clear expectations with the operator and the team as to the division of authority, especially if you think that after six months it will change again, to a less involved owner. Think about questions such as do you want them to wait for your visits to make certain type of decisions, because this is likely to happen when they have a cadence of seeing you for two weeks every months. They might stop most decision-making for the other weeks if they think you'll want to be involved.
The key point is, think how to structure your involvement so that it doesn't undermine the authority of your operator with their team.
On this note, I am looking for an operator opportunity in LA or Orange County, so keep me in mind please if my industry and location profile are a fit.

Reply by a searcher
from Biola University in North Tustin, CA, USA

I have the opposite, I’m on west coast (SoCal) and fighting urges to acquire in the SC/GA area where thinking would eventually relocate. I’m with ^redacted‌ though, you need someone you know you can trust and is capable, otherwise just too many things can go sideways.

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