Small businesses can use the strategy of hiring loyal employees to grow by ensuring that these employees are dedicated to the company's mission and are willing to go the extra mile to achieve it. Loyal employees are more likely to stay with the company for a longer period, reducing turnover costs. They can also become advocates for the company, helping to attract more customers and potentially more talented employees. However, it's important to note that loyalty should not replace competence. Employees should have the necessary skills and experience to perform their jobs effectively.

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Bad Blood

Learn why and how a $9 billion dollar company vanished in a few weeks. The story of Theranos is the Silicon Valley equivalent of the Enron scandal rep...

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Elizabeth took nepotism one step further by hiring her brother Christian, an analyst with no background in medical diagnostics. Christian, in turn, recruited four of his former fraternity mates, who soon became known as the "Frat Pack". None of them had previous experience in medical devices. However, they won Elizabeth and Sunny's confidence by spending long hours in the office and willingly doing everything that was asked of them. Sunny saw these as indicators of hard work and "loyalty". Soon, they were called into meetings that other senior employees were not invited to.

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Potential obstacles companies might face when hiring inexperienced but loyal employees include lack of technical skills, lack of industry knowledge, and potential for mistakes due to inexperience. These employees may require more training and supervision, which can be time-consuming and costly. However, their loyalty and willingness to learn can be a significant asset. Companies can overcome these obstacles by providing comprehensive training programs, mentorship, and opportunities for professional development. Regular feedback and performance evaluations can also help these employees improve their skills and adapt to the company's needs.

In the book 'Bad Blood', the concept of loyalty is portrayed through the actions of Elizabeth Holmes and her brother Christian. Despite Christian and his friends, known as the 'Frat Pack', having no background in medical diagnostics, they were given significant roles within the company Theranos. This was due to their willingness to work long hours and do everything that was asked of them, which was seen as a sign of loyalty by Elizabeth and Sunny. This loyalty, however, was misguided and led to poor corporate governance and ultimately the downfall of the company.

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