In 1987, I was 2 years in to a very successful automotive aftermarket franchise.
We were doing fairly well, but the amount of work was over whelming. I hired a man
who I had met at a business that I was doing work for. For the first year, it was great.
He was the best salesman/closer that I had ever met. I had promised him a 33% raise
in 12 months if things worked out, but he had increased sales so much that I gave him
the raise after 4 months. But then things began to change. My thoughts are that he felt
he was the reason for our success, and obviously thought that he could make all that
money for himself. His sales took a nose dive, and his salary then became a drain.
I really thought a lot of the guy, and it was with a heavy heart that I had to broom him
out the door. So what did he do? He borrowed $35000 (from my banker, no less) and
then opened up the same type of business as an independent. He did his best to take my
customers, hire away my employees, took out ads in which he made snide comments about
my operation. Well, the man had over the years proven that he was the type of guy who should
always work for somebody else. He was a great number 2 guy but was a disaster as number 1.
His business lasted about 8 months. The money was gone, his checks were worthless, and couldn't
even cover payroll on a regular basis. His outstanding debt had ballooned to $350K with no means
to ever repay it. All his suppliers put him on C.O.D. and he then had little choice but to declare bankruptcy.
The day after his case was heard in court, he came to my business, poured himself a cup of coffee,
sat down at my desk and broke into tears. I felt so bad for him that I loaned him $2500 which I never got back. But I didn't care. He was my buddy, and I have always made it a policy to never lend someone more money than I could afford to just give them. 10 years later, at age 57, he died of a heart attack. I spoke at his funeral. I felt that I had lost a brother.