ANTenna Blog -- Business & E-Business

Of course a great idea, a solid business plan, and careful spending are important ingredients in a successful company. But as an incendiary blog posting (unwittingly) revealed -- and what all smaller businesses need to always remember -- is that great employees are what make it all work. Make sure they want to stick around.

Mahalo CEO, and Internet entrepreneur, Jason Calacanis blogged about 17 tips to save money while running a startup. Among the tips were many that made sense for all smaller businesses: Use Google Docs, use Google hosted email, outsource accounting and HR, don't invest in a phone system. Others might quibble with his tip, "Buy Macintosh computers, save money on an IT department."

But the tip that sent the blogosphere reeling was this one (his later edits are included):

"Fire people who are not workaholics. don't love their work... come on folks, this is startup life, it's not a game. don't work at a startup if you're not into it--go work at the post office or starbucks if you're not into it you want balance in your life. For realz."

Obviously, every smaller business that is looking to make its mark, and compete against guys with deeper pockets and a larger presence, wants and needs passionate, dedicated employees. Because without that, you've got nothing. But Calacanis' comment really speaks to how a business treats, and what it expects from those employees.

There were many, many seriously funny takes on Calacanis' posting but blogger Jeff Nolan at Venture Chronicles sums up what is fueling the anger simmering below: "But it was the general sentiment represented in this tip about not hiring people who aren't workaholics that was disquieting. At what point do you pause your quest for world domination and ask of yourself what you are doing for your employees? It's all well and good to suggest that equity more than makes up for a thin paycheck and long hours, but what about helping young employees establish some sense of professional self and experienced ones a broader spectrum of opportunities, develop business skills, build their personal brands, and much more?"

And it is the business that will ultimately pay the price for not doing right by its employees. He continues: "The single biggest cost in any tech company is people and the most disruptive component in the people equation is replacing good ones who leave your company. The fact is that good people always have jobs so the only way to get them is to poach them from another company. People leave their place of employment for a number of reasons, including a loss in confidence in management, greener pastures at a competitor or in some unrelated company, money (never alone a motivator, but by itself can easily become a demotivator) and working conditions. How many people would read this post and think that any company Calacanis is involved with is somewhere they want to work?"

Allen Stern at CenterNetworks agrees. He writes: "In all of my years of management, the best thing I ever did was give my teams more room to breathe. I'd put my hours worked in my career against anyone and I can assure you that I've lost a lot of great chances with great people because of putting work first always. Jason should consider it as well if he wants his team to stay on. Short term his strategy works, but won't in the long run. Burnout comes quick and with all of the current opportunities out there, people will leave when they are burned out. And when they leave, it will be at the worst time."

One other tip to ensure your business goes the distance: Fire the workaholics .