Waters Business Consulting logo

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.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Related Posts

Phone stock photo

Pros and Cons of Building a Mobile App for a Small Business

April 22, 2022 No Comments

A mobile app can put your business in your customers’ pockets, literally — but that convenience comes with real costs and real risks. Before you commit time and money to development, it’s worth weighing the engagement and loyalty benefits against the fees, upkeep, and app fatigue that come with the territory. Here’s a balanced look at both sides.

Read More »
Business stock photo

How Gelato Cimmino Turned an Italian Family Recipe Into a Nearly 2,000-Person Grand Opening

September 10, 2026 No Comments

Mario Cimmino grew up in Torre del Greco, a small town in Southern Italy, where some of his fondest childhood memories involved eating unpasteurized, pure-cream gelato with his family. Years later, as a successful business owner in Scottsdale, Arizona, he decided to bring that authentic taste to the U.S. — but launching a food and beverage brand from a standing start meant navigating everything from licensing to marketing to sourcing ingredients an ocean away. “I really appreciate John’s help,” said Mario Cimmino, Owner of Gelato Cimmino. “I don’t think I would have made it without his help.” Big Vision, Untested Ground Mario already owned the commercial property for his shop and had succeeded in other ventures, but opening a specialty food business was new territory. He needed a business structure and a set of growth steps built from scratch, along with a marketing plan strong enough to generate real buzz for an unproven concept. Beyond that, there were the less glamorous but essential pieces: understanding the licenses and registrations required to operate, and figuring out how to stand out in a market with existing gelato and dessert competitors nearby. Engineering a Grand Opening Waters Business Consulting Group started with the numbers, building a business model that showed Mario exactly what revenue he’d need to drive based on his cost structure — critical information before a single scoop was sold. From there, the team provided guidance and support so Mario could import raw gelato ingredients directly from Italy, preserving the authentic recipe and quality he grew up with. On the marketing side, the goal was ambitious: a grand opening with more than 1,000 people in attendance. The team built a comprehensive marketing plan using social media, PR outreach, and brand-building strategies designed to create a following before the doors even opened. That included orchestrating an event specifically for food critics and local publications, giving them a reason to write about Gelato Cimmino on their own channels ahead of the launch. A financial model mapped out the upfront capital investment needed for equipment, staffing, and the buildout itself, while a hiring strategy and clear position descriptions ensured Mario brought on quality staff from day one. The team also assisted with developing the business’s website to support the launch. A Line Down the Sidewalk The strategy worked, and then some. Opening day drew a line down the sidewalk of almost 2,000 people — nearly double the original goal. The PR outreach paid off too, with multiple media outlets covering the event and amplifying the buzz well beyond Scottsdale. Several years later, Mario has kept the momentum going and is now working toward franchising Gelato Cimmino across Arizona and the broader Southwest. Ready to Launch or Scale Your Concept? Whether you’re opening your first location or planning your next one, having a real plan behind the excitement makes all the difference. Reach out for a free consultation to talk through what that plan could look like for your business. Contact Waters Business Consulting Group to schedule your free consultation.

Read More »

Imagine Selling Your Business…

How Would Your Life Change?

You didn’t start your business just to stay busy—you built it to create freedom, security, and options for yourself and your family. Selling your business can be life-changing, but the real question is whether you’re intentionally building toward that outcome or simply leaving it to chance.

Sign up below for a free consultative session to learn what your business could be worth today and in the future! 

Thank you for your interest in learning what your business is worth. We will be in touch shortly.