It’s not a scam, it’s just a badly run business. The owner is trying to make it grow too quickly.
The fact I had to hang up my phone by putting a box of staples on my disconnect button was the first clue… I had no handset, and there were no spares – despite five or six more base units in a drawer at the rear of the office. Also, despite being a telemarketing call centre, nobody had thought to get a scrubbed phone list from the Do Not Call Register. We ended up just calling people from the phone book. My apologies to anyone on the register that I did call.
The computer system seemed second hand and poorly set up. Much of the software appeared to be pirated. My own computer was a Pentium 3 with a side panel missing and no word processing or spreadsheet software. The network had not been set up properly and staff were not using the server as central information storage. The wi fi access point hadn’t been secured, and anyone passing could gain access. Email wasn’t functioning, and even if it was the staff weren’t aware of their account information. The decrepit printer would whine when printing, and smudge the top of the page.
On my second morning, the sales manager resigned. He walked out without notice, appalled at the situation in the office. Little did I know he was setting an example for me to follow two weeks later. On the bright side, I swapped my computer for his – which was intact and came with an apparently pirated copy of Microsoft Office.
We had less than happy customers calling to find out where their orders were. Many reported they had been fobbed off repeatedly, being told that it would be in the next week or two. Many said they had called up before and been told someone would call them back, but nobody had. On Friday one customer who had lost patience and cancelled called to ask where the refund of her deposit was. I couldn’t tell her, but said I would try to find out and get back to her. When I asked the administration officer, I was told she couldn’t be refunded because there was no money.
Financially the company is spread very thin. The first week I was there contractors downed tools because they weren’t paid. I was fortunate, and did get paid for my three days work to that point. Last week it was worse… The Thursday pay didn’t happen at all. The money simply wasn’t there. Contractors downed tools again, and I was tempted to do likewise. A desperate scramble saw part payments in cash to some, including myself. The remainder of last week’s salary has now appeared in my account, though I’m going to be pleasantly surprised if I see payment for the part week I completed before walking out.
Yesterday I heard that a payment that the company was about to receive had already been allocated in its entirety to stock acquisition. It won’t be going to salaries or providing refunds to those customers that have requested them. I fear that tools will be downed again on Friday. I don’t know how many times that can happen before contractors walk away permanently.
Some customers have received their orders and do seem happy. Many others haven’t , and are rightfully angry. Despite this, there really is potential for the company to succeed, but only if it consolidates its local position before expansion. To do this it needs sound management. It needs planning and organisation. But these are things it lamentably lacks. Pressure needs to be brought on the owner to slow his expansion plans, and concentrate on service delivery.
The owner has been in this situation before, but hasn’t learned from past mistakes. He is building a business without foundation, its walls built on sand. The slightest shake and they will come tumbling down. The capital required to provide service at the same time as expanding the business quite simply isn’t there.
With his mind set on taking the operation national, the owner is, in my opinion, dooming it to failure. Instead of becoming a small success, his desire to be a huge success will likely see him fail again.
Update: I was pleasantly surprised to find my salary was paid. I am, however, unchanged in my opinion of the owner or the wisdom of leaving.
