My friend has a startup, and he hired someone to help him boost sales. When we talked a year ago, he told me that his sales guy wasn’t closing deals.

I told him that it was probably time to let the person go. But my friend is such a nice guy that he gave the guy a second chance, then a third chance, and even a fourth chance.

Finally, my friend had to fire him, but instead of just terminating the employee, he offered him a chance to continue working as a part-time consultant.
Unfortunately, this sales guy turned around and sued my friend for illegally converting a full-time employee into a contractor. Now my friend is stuck in a lawsuit.

What can you learn from this story?