Business Education

Here’s the Most Important Takeaway from the Trump ZTE Fiasco

ZTE who? What? Wait just a moment. There’s headlines all over and most Americans don’t know what to make of the situation. In fact, it’s a bit confusing since it deals with a very boring subject. But, it’s really not that difficult to understand. Ostensibly, it’s the result of bad business practices, and it’s causing real-world consequences for a very large company. At the most basic level, it delivers a great business lesson, which many entrepreneurs would otherwise avoid. It’s an uncomfortable topic but it’s also a never-ending threat — complying with the law.

The Trump, ZTE Fiasco in a Nutshell

Of course, very few business owners intentionally break the law. However, this doesn’t mean it’s not possible to accidentally cross the line. (In fact, it’s entirely possible to inadvertently make a mistake, only to realize it when it’s too late. After all, there are so many laws, it’s nearly impossible to always be in-the-know, all the time.) Basically, the Chinese company, ZTE, sold its products to Iran and North Korea. Now, what triggers the trouble is the fact those products contained American-made components.

Today’s business owners have a wide array of concerns, not the least of which is turning a profit in what can be a volatile economy. However, financial success is of little consequence if the government compels you to dissolve your company for failing to comply with legal requirements. —Intuit Quickbooks

The net result is a colossal fine of $1.19 billion. Yes, “billion, with a ‘B.'” That’s the cost of violating trade agreements and it’s one which will surely make every international company take notice. But, such a financial penalty will put ZTE out of business. That’s where the controversy comes into play.

What to Do if Your Business is Out of Compliance

Now, let’s look at the core lesson here — operating a business within the confines of the law. Sure, breaking the law is not something you set out to do. Although, this doesn’t mean it can’t happen. If it does, here are some helpful suggestions for how to deal with a compliance issue:

Don’t try to hide it or ignore it. Whatever you do, don’t attempt to hide it or ignore it. The problem won’t magically go away. It will only worsen and that’s much more damaging. Face it, apologize, ask for forgiveness, take responsibility and do so humbly.
Get sound legal advice, right away. If your business does break a law, it’s not necessarily the end of the world. Sure, it’s definitely unpleasant and uncomfortable. But, that means it’s time to tackle it head-on, as soon as possible. Speak with a lawyer, if necessary to learn about your options.
Openly address the situation carefully. Chances are excellent your team members will learn about it at some point. Do yourself a favor and address it pragmatically. Just like when you fire an employee, there will be questions and you have a duty to provide answers.
Learn from your mistake and move on. While it’s a bad experience, that doesn’t mean it’s worthless. Take the opportunity to learn from your mistake and then put it behind you.

Have you ever experienced violating a code or law? What other advice would you offer about learning and getting past the experience? Please share your thoughts by commenting!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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The Business Behind the Beautiful Landscapes

July 1, 2026 No Comments

Why great operations create great profits A beautifully maintained commercial property is easy to spot. Clean lines, healthy turf, well-kept plant material, crisp edges, seasonal color. The kind of outdoor space that leaves a strong first impression on tenants, customers, employees, and anyone else who walks through it. What’s much harder to see is the business behind that landscape. Behind every well-maintained property sits a whole operating system of people, equipment, schedules, production standards, estimating, purchasing, customer communication, quality control, and financial discipline, all working together (or not) out of view. When those pieces work together, you get more than a beautiful landscape. You get a profitable business. At Waters Business Consulting Group, we’ve seen this pattern over and over: a landscape company doing genuinely exceptional field work, with satisfied customers and growing revenue, and margins that stay stubbornly thin anyway. The problem usually isn’t the quality of the landscape. It’s the quality of the business behind it. Great landscapes are built on great operations Commercial landscaping is an operational business through and through. Every single day involves hundreds of small decisions about labor, equipment, routing, materials, weather, and changing conditions in the field, and one missed detail can ripple further than you’d expect. A bad estimate can put a contract behind before the first crew even shows up. A poorly planned route quietly burns labor and fuel. A piece of equipment going down can throw off an entire day’s schedule. Inconsistent production standards mean rework, and weak communication turns a minor customer concern into a retention problem. These all look like operational issues on the surface. Underneath, they’re financial ones. The companies that consistently perform well understand that operational excellence isn’t separate from profitability. It’s one of the main things driving it. The cost that hides in plain sight Most operational inefficiency doesn’t show up as one big expense you can point to. It builds up quietly. Ten minutes of unproductive time on one crew doesn’t sound like much, but multiply that across dozens of employees, several crews, hundreds of service days, and a full year, and it adds up to real money. The same goes for excessive travel time, poorly sequenced work, labor assumptions that were wrong from the start, unplanned overtime, equipment downtime, wasted material, rework, unclear expectations, and inconsistent quality control. The tricky part is that most companies don’t have the visibility to actually measure any of this. They know a division missed its margin target, but not why. They watch labor costs rise without being able to say which crews or properties or habits are actually driving it. The best operators make the invisible visible. They build systems that show leadership exactly where time, labor, equipment, and money are going, and whether that spending is actually producing results. Profitability starts at the estimate A lot of a job’s profitability gets locked in before a single crew shows up. You can have great people and strong field leadership, but if a contract was priced wrong, operations is stuck trying to make an unprofitable job work anyway. Good estimating takes more than labor hours plus a margin. It means really understanding production rates, labor and equipment costs, material costs, how complex the property actually is, travel and mobilization, seasonal swings, overhead, risk, and what the customer expects. The best companies don’t stop once the estimate is submitted. They go back and check it against what actually happened: did the job take the expected hours, were the production assumptions right, did materials or equipment cost more than planned, did scope creep eat into margin, and which types of estimates keep performing well versus which ones keep losing money. That feedback loop is what sharpens pricing over time and stops the same mistake from repeating itself job after job. Estimating isn’t really a sales function. It’s the first step of operational planning. Labor productivity is a real competitive edge Labor is one of the biggest, messiest costs in commercial landscaping. The companies that consistently win don’t just watch payroll totals. They understand how labor actually converts into finished work, tracking things like labor hours per property, production rates by service, revenue per labor hour, crew productivity, overtime trends, rework, and schedule adherence. The point was never to push people to work faster without regard for quality or safety. It’s to give crews clear expectations, the right resources, and as few unnecessary obstacles as possible. When employees know what success looks like and managers actually have reliable data, productivity tends to take care of itself. Scheduling is a profit lever, not an admin task It’s easy to treat scheduling as busywork, but it’s actually one of the biggest financial levers a landscape company has. How crews, equipment, and properties get scheduled affects labor utilization, travel time, fuel costs, overtime, equipment availability, and how the customer experiences the work. Bad scheduling hides costs everywhere. A crew burns too much time driving between stops. A piece of equipment sits idle. Work gets pushed until it needs overtime to finish. One customer request throws off an already tight route. Good scheduling weighs property locations, service frequency, crew skill, equipment needs, seasonal workload, and weather, not just to fill the calendar, but to actually deploy people and machines in the most productive way possible. Equipment has to earn its keep Equipment is essential to this business, and it’s also expensive. Buying, financing, maintaining, hauling, repairing, and eventually replacing it eats up serious capital. The strongest companies treat their fleet like a strategic asset, watching utilization, operating costs, maintenance needs, downtime, replacement timing, and return on investment, not just fuel and repair bills. They also understand what a broken-down mower or truck really costs. It’s rarely just the repair. It’s the whole crew’s productivity for the day, plus whatever it takes to catch back up: rescheduling, overtime, a rental, extra labor. Preventive maintenance and real equipment planning protect both productivity and the bottom line. Quality control is a financial issue, not just a service

Small Businesses are Increasingly Turning to Alternative Lenders – Here’s What You Need to Know before Borrowing

April 28, 2023 No Comments

Even before the collapse of Silicon Valley Bank or SVB, there was a tightening in the commercial credit market. Post-collapse, small businesses have found it increasingly more difficult to secure capital from traditional lenders. Still in need of cash infusions and lines of credit, small businesses are turning to alternative lenders. Advantages and Disadvantages of Borrowing from Alternative Small Business Lenders Alternative small business lenders are non-bank lenders that provide financing to small businesses. They offer a variety of loan products, including term loans, lines of credit, and equipment financing. Alternative lenders often have more flexible lending criteria than traditional banks, making them a good option for small businesses that may be turned down for a loan from a traditional lender. Of course, even though all of this sounds good, there are reasons small businesses have historically relied on traditional lenders. This is due to the fact that there are not only upsides but also, downsides to using an alternative lender. So, let’s take a look at the pros and cons of borrowing from alternative lenders. Pros of Borrowing from Alternative Lenders Faster approval and funding. Alternative lenders often have a streamlined application process that can be completed online or over the phone. This can lead to faster approval and funding, which can be critical for businesses that need money quickly. More flexible terms. Alternative lenders may be more willing to work with businesses that have less-than-perfect credit or that are in the early stages of growth. They may also be more willing to offer loans with longer terms or lower interest rates. More options. Alternative lenders offer a wider variety of loan products than traditional banks. This includes term loans, lines of credit, and merchant cash advances. No personal guarantee required. Some alternative lenders do not require a personal guarantee from the business owner. This means that the business owner’s personal assets are not at risk if the loan is not repaid. Although these are some quite compelling reasons to seek out capital from an alternative lender, there are also a few considerations you should take into account so you have a better understanding of how these lenders work. Cons of Borrowing from Alternative Lenders Higher interest rates. Alternative lenders typically charge higher interest rates than traditional banks. This is because they are taking on more risk by lending to businesses that may not be as creditworthy. Shorter terms. Alternative lenders often offer loans with shorter terms than traditional banks. This means that the business owner will have to make larger payments over a shorter period of time. Hidden fees. Some alternative lenders charge hidden fees, such as origination fees or prepayment penalties. These fees can add to the overall cost of the loan. Less customer service. Alternative lenders may have less customer service than traditional banks. This can make it difficult to get help if you have questions or problems with your loan. Now you have a better idea of what to expect from alternative lenders, you are more informed about your options and this will give you additional choices. Taking it a step further, you should also consider the following if you are in need of a line of credit or some operating capital. When to Borrow from an Alternative Lender Alternative lenders can be a good option for small businesses that need money quickly, have less-than-perfect credit, or are in their early stages of growth. However, it is important to carefully consider the pros and cons before choosing an alternative lender. If you are considering borrowing from an alternative lender, be sure to shop around and compare rates and terms from multiple lenders. You should also read the fine print carefully to understand all of the fees and conditions associated with the loan. Interested in learning more about business? Then just visit Waters Business Consulting Group to learn more about us and the services we offer.

Ways Business Owners can Deal with Personal Crisis

May 18, 2017 No Comments

Entrepreneurs, by their very nature, are self-reliant. They set goals and achieve them with confidence. When a personal crisis strikes a business owner, it can be very damaging to their corporate environment and even its micro-culture. Suddenly, the dynamics change and can lead to irreparable harm. We’ve all heard the advice not to bring personal problems into professional space, but, some are so large they have a nearly uncontrollable effect. It’s best to bring the situation into perspective, but, doing so might be difficult to accomplish. Ways Business Owners can Deal with Personal Crisis In some instances, it’s possible to prepare a business for a crisis. When it’s impending and inevitable, business owners should prepare by speaking with their team members about delegating and assigning responsibilities, seek legal advice (if applicable), and focus on what’s most important. There will be difficulty in maintaining balance but by being proactive, you’ll have less to worry about. Eventually it happens to the best of us. Something occurs in our personal lives that is so devastating, we have difficulty concentrating at work. It may be the death of a loved one, a divorce, a financial crisis, or serious damage to our homes. When our personal lives are in chaos, it can be hard to focus and get what we need to do done. —Inc.com Unfortunately, it’s often the case that a personal crisis strikes without warning. When it does occur, it can be very burdensome to get through. Even the toughest entrepreneurs will have difficulty trying to deal with upset in their personal lives while continuing to run their businesses. Here are some ways business owners can deal with a personal crisis: Outsource and be willing to ask for assistance. It’s okay to let go and farm-out work during turbulent times, especially if you’re having trouble staying focused and concentrating. Also, there’s no shame asking for assistance from your team — it’s actually a smarter choice. Be upfront with customers. As soon as possible, let your clients know about the situation. You don’t have to go into details, but you ought to alert them to what’s going on, particularly if you’re not able to work as usual. You’ll find most to be understanding and that helps to give you some peace-of-mind. Surround yourself with positive people. This is something that successful entrepreneurs naturally do but it’s very important when you’re going through tough times. Personally, I lean on others as well as my faith and prayer to shoulder the burdens of crisis. It’s uplifting and it can be a way to see the silver lining knowing others are walking with you. Give team members more flexibility. Your employees are huge assets to your business and during a personal crisis, can be the best go-to source for carrying-out day-to-day operations. Give them the flexibility that’s needed to keep your company running smoothly. Do not put undue pressure on yourself. If there’s one thing entrepreneurs struggle with, it’s the fear of not getting the job done. When you are dealing with personal issues, give yourself permission to lighten your workload. Take time to reflect on what’s most important. This is an ideal time to put everything in perspective. Give yourself time off and reflect on what’s truly important in your life. In addition to these, you should be honest with yourself about your life’s direction. Some business owners who experience a personal crisis use it as a learning tool advantageously, but others allow the event to cloud their judgment and make rash decisions. When you’re not thinking clearly, be willing and ready to ask for advice from someone you trust. In my life, I have found great opportunity comes from crisis because of my willingness to reflect and make changes. How have you overcome crisis and remained focused and successful with your business? Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

Here’s the Most Important Takeaway from the Trump ZTE Fiasco

The Trump, ZTE Fiasco in a Nutshell

What to Do if Your Business is Out of Compliance

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The Business Behind the Beautiful Landscapes

Small Businesses are Increasingly Turning to Alternative Lenders – Here’s What You Need to Know before Borrowing

Ways Business Owners can Deal with Personal Crisis

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