Always be on guard when running your business

[maknyos]

We can't put 100% trust in others, and even our own families. In business, there's money involved, and we know that money is a very sensitive aspect of life. There's a saying that goes, "Money is the cruelest breaker of ties," and yes, it's true. It's not once or twice that I've heard of friendships falling apart just because of money, and even family ties can be severed.
What you experienced is a valuable lesson. It can be a lesson for everyone that in running a business, we shouldn't completely trust others.

This is the reason why some chose to resign from their respective jobs because they want to personally manage their business, especially if they have seen that the kind of business they have has very high potentials to gain more demand and become highly successful in the next couple of years.

If they are hands-on, there will be less possibility for this incident to happen, knowing hiring a total stranger and give him a position of totally managing the funds of the business puts the business not only at risk of losing but  also giving him access to all the documents might only compromise the legal papers of the business in the future.

This risk is preventable, and the only person who can prevent it is ourselves as business owners. I realize that we might want to be more relaxed by hiring others and giving them our full trust, but that also carries the risk that those we trust could betray us.
So, as long as we can still manage it, we can manage it ourselves with the help of the people we hire. That's better for minimizing the risk.
By the way, I'm not generalizing that everyone can betray because there are still people who can maintain trust, but it's indeed difficult to find such people in this day and age.

[slapper]

We created businesses like mini kingdoms. Owner on top, employees below, fixed wages, no transparency whatsoever. Then we're shocked (literally SHOCKED) when people have access to and no skin in the game, start helping themselves.

Your parents have trusted too much, sure. But what's the alternative? Micromanage everything? That's just slow death rather than fast death. You can't scale anything when you're paranoid every time any person makes a decision. The termite thing really annoys me, because it makes this about the nature of people being bad. But put anyone in a system where they do all the work, take all the stress, get fixed pay while watching someone else get rich off their effort? Yeah some will skim. Rational Response to Bad Incentives

And Coinbase is proving it does not matter how big you are. Billion dollar company, same problem. Employees had information gaps to exploit and no incentive to be concerned with long-term company health.

What nobody wants to admit is we know how to fix this. Profit sharing. Real equity. Open books. But owners don't want to give up control and share the profits so we just keep running this same script over and over. Trust down breaks, paranoia sets in, business suffers anyway, repeat

Maybe the actual answer is alignment of interests so people benefit from doing right rather than hoping they will out of goodness.

[whiteblue]

We can't put 100% trust in others, and even our own families. In business, there's money involved, and we know that money is a very sensitive aspect of life. There's a saying that goes, "Money is the cruelest breaker of ties," and yes, it's true. It's not once or twice that I've heard of friendships falling apart just because of money, and even family ties can be severed.
What you experienced is a valuable lesson. It can be a lesson for everyone that in running a business, we shouldn't completely trust others.

If someone is involved, this is very dangerous, and don't trust them completely, because many people will slowly bite you, acting like wolves in sheep's clothing.

This is the importance of building a system that is not easily manipulated by anyone in our business, especially in financial matters. This will allow you to manage everything that might be exploited by your employees. You can monitor it properly without any nepotism, corruption, or worse, by your employees.

[batang_bitcoin]

If someone is involved, this is very dangerous, and don't trust them completely, because many people will slowly bite you, acting like wolves in sheep's clothing.

This is the importance of building a system that is not easily manipulated by anyone in our business, especially in financial matters. This will allow you to manage everything that might be exploited by your employees. You can monitor it properly without any nepotism, corruption, or worse, by your employees.

There will be people that if they see the potential in your business, they'll be your good friends even if they're your employees. That's why setting a boundary to let these people know who's running the business. And if you'll get to allow someone to be involved in the business, regardless of their tenure. There's always a chance that they'll choose to go the other route than to be successful together as their boss. Corruption can happen everywhere and that's why they think it's okay to be one of it if they really have the bad intention.

[Jegileman]

The mistake that my parents did was trusting the hired manager too much, always be on your guide when running business and paying people salaries, people are like termites, what you paid them might never be enough for them, they will start planning to drain down your business and if you are too relaxed it won't show until it's too late.

I remember hearing from experienced people that you should not trust even your own relation when it comes to running of your business, they will drain you down and you won’t be able to take the legal action on them just because they’re your people and you can’t watch seeing them being penalised as required for their misconduct in your business.

Given your business to be managed by people should not mean you trusting them and not following up in their activities in your company, if you let them feel so comfortably handling your business without scrutiny, you’ll regret ever doing that and it might be too late as your business would have already crumbled or close to crumbling. No one can run your business better than you can do, so don’t feel comfortable given it out and not following up with duly scrutiny needed to be observed in a company.

[kawetsriyanto]

The mistake that my parents did was trusting the hired manager too much, always be on your guide when running business and paying people salaries, people are like termites, what you paid them might never be enough for them, they will start planning to drain down your business and if you are too relaxed it won't show until it's too late.

We can't really trust anyone, especially in business. Whenever it is related to the money, there will be always a chance for an intention to be greedy. That's why it is very important that the owner of a business to monitor the financial stability (cash flow) regularly. This can minimize the possibility of misappropriation of money in the business. And we also know the money circulated in the business. Besides of monitoring the circulated money in the business, this also can be an indicator whether the business running well or not.

Well, it can be a big lesson for you and your parents at least. In the future, it is better to keep monitoring them every day. Sure, we can't be too relaxed even if the business can run by itself. We still need to monitor and to evaluate any needed at least.

[Vaculin]

Even your own family can betray you, how much more for a total stranger. This is the reason why if you want to maximize the success of your business, manage it on your own. That way, you'll be sure your business won't be gained advantage by other people.

Just know the fact that when money is directly involved, the chances of stealing is high, and worst is, the person you trusted so much to work on your business is the very first  person who will attack you and mess up with your hard-earned funds. So never entrust easily your business to other person.

[Dick Long]

We can't put 100% trust in others, and even our own families. In business, there's money involved, and we know that money is a very sensitive aspect of life. There's a saying that goes, "Money is the cruelest breaker of ties," and yes, it's true. It's not once or twice that I've heard of friendships falling apart just because of money, and even family ties can be severed.
What you experienced is a valuable lesson. It can be a lesson for everyone that in running a business, we shouldn't completely trust others.

Sure for the fact that change is constant. It happens regularly, and becoming so alarming that those usually found doing this are people we have known and trusted over time. who are mostly friends relative's and business associates.
This evil minded people use opportunity of the trust in the person involved because of momentary pleasure and desperation to steal because of the level of trust that limit the constant check of there activities.
This affects block and creat fear in the mind of those that trust them towards others
 Business is about trust but because of people like with greed to steal from others to enrich themselves, making it very hard for people with such experience to entrust there business with people ands without having fear or doubt in them.

[junder]

Although we are the owners, we must still monitor our business and not fully trust others. We can't risk our business in other hands so we need to be responsible for our business. Many businesses go bankrupt because of the employees and a lack of monitoring by the owner.

We can allow them to run the business but monitoring and watching the flows will be our job. We will be at the end of the flows and checking whether everything is running normally or we need to do something. Money can change people especially if they know how to use the flaws.

If I have a business and circumstances require me to recruit someone to help me, that person must be trustworthy, even if it's a family member. I don't mean to be negative, but no one knows what's going on in someone's mind, especially when they're already looking for profits.

Giving trust to others isn't easy. We're lucky if we find someone who is truly trustworthy, responsible, and wise in their work. But not everyone is like that, because, as you said, money can change a person. As the saying goes, "If you want to see a person's true character, lend them money."

[Localhostspeed]

That is the same in investing, we invest in people because we have believed them to be a good worker and will turn our business into a profitable one. But it turns out that if we have hired the wrong people that we have put our trust in them are also the reason why we're falling apart. So, if you own a business, there is a reason why there's a long process of hiring coming from managers, supervisors and even with the CEOs. It's not only about what's written in their CVs but also the attitude and perspective they believe that should be valuable to the company's  growth.

One thing I have noticed with people that are desperately in search of jobs, they comes with determination and all kind of talks to bag a job and all of this doesn't matter until they become part of the job. Most HR understand nothing but sweet talk, they like a person that is going to give them all talks that is going to elevate the company to generate billions for the company only to hire them to later be doing what you didn't even expect from them.

Business owners need to understand that an employee will do anything to secure a place for there with different things even though they have qualification and only with time they can determine if a person can work with them for long term and be committed to the company or will change their ways later. You see crypto investment, most of them don't have loyalty this is why people jump from one team to another because of greed or stole from a company like the case of coinbase.