Magnus Marketing Blog

Recently, a friend and business colleague reached out to ask me to assist on a project. She was the Director of Business Development for a staffing agency based in New Jersey, the company focuses on IT Staffing, Outsourcing, and CRO/pharmaceutical staffing. I had worked with her and this company last year, during a good part of 2008 - and, even in pretty seriously constrained market conditions, managed to break into about 18 companies - generating meetings and securing contracts. She and her recruiter managed to source and even place candidates. Considering the market conditions and what I hear now, this was quite good.

In August 2008, after the company experienced some client issues - my check started to come late...then not at all. She and the management kept telling me that the check had to be co-signed by the CEO and his co-owner wife, they were having some cash flow issues...but if they close positions, they can pay. In October 2008, the relationship was terminated due to the fact they couldn't pay me any longer and promised - the outstanding fees would be handled. By December, most staff was gone and rumor had it that the firm was near bankruptcy. I launched litigation to collect the money that was owed. Turned out the CEO had a history of malfeasance in financial affairs.

To date, I have not received any communication from the company nor any funds they owe. My friend is partly to blame for this situation, because it is her responsibility to ensure that associates are paid - as a Director, understanding the financials is part of the job. Mostly the company management, which I presume is not aboveboard in business dealings, is assuredly to blame - my goodness, lying about cosigning and hiding financial issues?

My friend left the company in October to tend to an ailing relative. I thought she was gone from the organization and, hopefully, on track to start her own business. She recently approached me about working with her to help write an article, I committed at first thinking she was on her own - building a business. Well, not long after the contract was signed, guaranteeing timely payment from her pocket - I saw a note on LinkedIN about how she was still working with the company, in fact, helping them with their brand new website and career night for CRO professionals. I emailed her the next day turning down the project.

Anything that helps her will inevitably help this company. A company that built a new website, but hasn't remitted payment to vendors - I wonder where the money came from from for that or the pow-wow? The fact that she is still associated with the company concerns me. I will not work with or support her as it will lead back to assisting the firm.

Sometimes in the name of ethics and good business practice it is adviseable to stay away from bad business. Staying with disreputable firms is not a good idea either as a personal reputation can be affected equally as well. I wish my friend luck and hope that she will realize her potential and move on to more aboveboard pursuits.