Questions

How do serial entrepreneurs solve the problem of employees managing and possibly stealing money?

i'm thinking for example people who own 3, 10...100 restaurants or franchising. Obviously it's impossible for them to check 24/7. What's the mindset and practical solution for this?

4answers

There is inherent risk to running a business and building a team of folks to help you grow it.

That said, hiring the right people is paramount to your success and reducing the risk of theft or abuse.

Hire people for their integrity rather than their skill set. Almost anyone can be taught skills of the trade, but no one "learns" ethics on the job.

Lastly, many franchises have systems in place to reduce the risk of employee theft with verified cash drops, deposit tracking, and such. The cash in the register drawer is *ALWAYS* at risk of walking away. That's why many retailers require cash drops when the register reaches a certain amount.

-Shaun


Answered 7 years ago

Find good people and make test oh honest time to time and the honest guys give the power manage your business , if you feel somebody will steal from you and it's not heppend yet it's also problem


Answered 7 years ago

No one can eliminate the possibility of theft in a business, but one can definitely minimize it. It all boils down to your front-liners and the level of integrity they have.

In this case, the workable solution is to look at your recruitment cycle. How is your current recruitment cycle looking like? Do you put in place any controls such as background checks on new hires, situation and behavioral interviews, etc? I find that if you can hire the right people, chances of fraud or theft is minimal, if not, completely zero.

It would also be worthwhile to re-look into your remuneration package as often, staff may steal due to low salary and high financial pressure.

Lastly, do look into the culture you are trying to institutionalize. If it is one of fear and "management by stick", do consider changing it, to something more empowering.


Answered 7 years ago

Software. Software. Software! Process. Process. Process!

At each step of the process you have entries being made by different people into a software system. Discrepancies surface rather quickly. For example, if you buy 10 pounds of beef, and only sell 20 1/4 pound hamburgers before you run out, there's a problem!!!

You will not be able to eliminate all possible theft. Managers at each location should be empowered to make decisions. They should be trusted people. And as the saying goes: "trust but verify", so spot check often.


Answered 7 years ago

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