October 5, 2011
To All My Former Valued Employees:
You are the best of the best.
It took me years to attract a talented group of engineers like you and build this company into what it was. Like other small businesses that have struggled through this economic plague, we were forced to trim our workforce. Now it’s just me. I hope you are all well and I sincerely miss the good days when we were working together.
My goal as an employer was to give you a great place to work, a good salary, benefits, and good projects to work on that would challenge you intellectually. I think we accomplished this. We built a very comfortable office with a full kitchen where we would take turns cooking on Fridays, we went deep sea fishing twice a year, the company treated employees and wives or girlfriends to dinner once a month, and we all even went on a cruise together one year. Some business owners would not have done most of these things, but my goal was to have the best employees and to provide a great place to work. And, it paid off well. Together we were a great company, we were profitable, and I thank you for your efforts.
When the economy started to decline I held on to you guys. I probably held on for too long, but finding great employees was difficult. Back in 2008 we kept saying things would get better "after the election". Ironically, we are saying the same thing in 2011
because the country is no better off now than we were then. In fact, things have gotten worse. I know where each of you has landed, and I am happy that you are all well.
Unfortunately, the regulatory climate in this country simply isn’t conducive to anyone starting or growing a business. That means I won’t be hiring you back, or anyone like you, anytime soon. Simply stated, business hates uncertainty. The regulatory climate in
this country and the attitude of our lawmakers breeds uncertainty. I have no idea what hiring an employee is going to cost me in taxes and medical insurance. I have no idea what my personal tax situation is going to be. The banking system has crawled into its
shell in fear of additional regulations. They aren’t lending any money to anyone — despite the money — our tax dollars — that the government gave them. There is just too much uncertainty, and there is absolutely no incentive for guys like me to try to break out and grow. That is precisely the wrong attitude that we should have in times like these when unemployment is so high. I employed
I started my first company 17 years ago. I worked from home, and my wife supported us, took care of the family, and paid off my student loans while I worked on the business. Any small business owner will tell you that it takes hard work and dedication to make a company succeed. This one was no different. My office was in my house, making working long nights and weekends the norm. We seldom went on vacations because with me out of town the company stopped operating. I didn’t leave the office for fear of
missing a phone call. When we made enough money to get cell phones we were able to "relax" as the office was now extended to the car, or wherever I happened to be. Days were spent in meetings while evenings were spent drafting, doing design work, and scrambling to meet the next days’ deadlines.
Any small business owner will tell you that you never leave work. They are right. Everything depended on my ability to produce. You never leave your work "at the office". Employees have the luxury of walking away at 5:00, but the owner is still working late into the night, and then stays awake at night worrying about the next day. Family life suffers. Sometimes your health suffers, but you can’t afford to be sick. One day, God willing, you get successful enough to add employees. My first employee worked in my house. That worked for a little while but you just can’t have employees working in the same small house that you and your family live in. Luckily we were able to rent a small office and move out of the house. That simple move changed a lot of things. Suddenly you go from just doing the work to being a property manager, office manager, and payroll manager, along with all of the other tasks you were already doing. Those long nights you put in working from home are now a long lost luxury since you are now putting in long nights away from home.
Why do we do this? Because someday it will all pay off, or so we keep telling ourselves. My finest moments were hiring a staff of good engineers like you. I felt a sense of accomplishment when I was responsible for the livelihood of
So what went wrong? For my part, I should have let you go years earlier than I did. If I had, I might have made it through the storm a little better. I’ve already told you why that wasn’t possible for me. My worst day was when I had to invite you into the conference room to tell you that your employment with me was over.
The government says we are in this mess because Americans went on a spending spree they couldn’t afford. People bought houses they shouldn’t have and brokers packaged up all the risky loans into cool and lucrative new investment vehicles. If you listen to the government, what went wrong is totally our fault.