Business Education

Elon Musk, Twitter, and Bogus Business Numbers Teach this One Simple Lesson

Elon Musk’s acquisition of Twitter is full of drama. It’s one of the biggest deals in the world of social media. What makes it so fascinating is the many bomb drops that continue to detonate, drawing huge public attention. Among the latest is about the actual number of bots on the microblog. Musk threatened to walk away if the company can’t provide proof positive about the percentage of fake accounts, citing his offer was predicated on official SEC filings. Turns out, there might be a lot Twitter is hiding from the public and this is a prime teaching example.

Why Businesses should Never Mislead the Public or Consumers

As a business owner, you should be aware of the consequences of misleading the public. When businesses knowingly deceive their consumers, it can lead to disastrous results. Not only can it ruin your reputation and cost you customers, but it can also lead to legal trouble. In this article, we will discuss the consequences of misleading the public and why honesty is always the best policy.

One of the most influential propositions in marketing is that customer satisfaction begets loyalty, and loyalty begets profits. Why, then, do so many companies infuriate their customers by binding them with contracts, bleeding them with fees, confounding them with fine print, and otherwise penalizing them for their business? Because, unfortunately, it pays. Companies have found that confused and ill-informed customers, who often end up making poor purchasing decisions, can be highly profitable indeed. —Harvard Business Review

Deceptive advertising is one of the most common ways that businesses mislead the public. This can take many forms, such as false claims about a product’s effectiveness, exaggerated claims about sales figures, or even making false promises about what a product can do. In some cases, businesses may even resort to fraudulent activities, such as selling counterfeit products or engaging in bait-and-switch schemes. Consumers rely on businesses to be truthful about their products and services. When businesses engage in deceptive practices, it erodes consumer trust and confidence. This can lead to lost business and customers turning to your competitors. In addition, if you are caught deceiving consumers, you could face legal action from state attorneys general or the Federal Trade Commission. The bottom line is that honesty is the best policy when it comes to running a business. Misleading the public may seem like a quick and easy way to make a profit, but in the long run, it will only lead to problems. Be truthful about your products and services, and you will build trust with your customers that will last for years to come. Have you ever been misled by a business? How did it make you feel? Share your story in the comments below. And if you’re a business owner, remember – always be honest with your customers! It’s the best policy for ensuring long-term success. Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Why Natural Disasters are So Disastrous to Businesses

September 28, 2017 No Comments

While hurricanes Harvey and Irma are gone, Hurricane Maria poses a possible threat. And, that’s a warning because in the aftermath of Hurricane Sandy, there were over 1 million insurance claims processed. The fact of the matter is, there are still businesses in Texas and Florida which are dealing with the devastation left by Hurricane Harvey and Hurricane Irma. Although time has passed, simple supplies remain scarce. This isn’t to unnecessarily frighten you, only to serve as a stark reminder natural disasters are so disastrous to businesses of all kinds. Why Natural Disasters are So Disastrous to Businesses Dealing with a business emergency doesn’t have to be an exercise done on the fly. In fact, it shouldn’t be approached without an effective plan. However, too many businesses simply are not prepared. Statistics show that 94 percent of all small businesses in the U.S. do backup their critical financial information. But, only 4 in 10 backup off-site. From natural disasters like Hurricane Sandy to common theft and hardware malfunctions, small businesses are particularly vulnerable in times of crisis. “Disasters can wipe out a small business in seconds,” said the U.S. Small Business Administration (SBA). Yet small businesses are often the most unprepared for emergencies. —Forbes This one figure is a peek into why so many businesses fail in the wake of natural disasters. Nearly 40 percent of all small businesses never reopen following a natural disaster, according to the Federal Emergency Management Agency or FEMA. That’s not an insignificant figure to ignore. And, it clearly shows businesses are quite susceptible to natural disasters. How to Protect Your Business from Natural Disasters You shouldn’t have to endure more stress and worry than necessary. Your company can make it through a fire, earthquake, tornado, or hurricane. All you need is a plan and to be proactive. This way, you’re fully prepared and know precisely what to do. Here’s a few helpful suggestions for how to protect your business from natural disasters: Back up company records in the cloud. Not only should you routinely backup your company records, including your financials, on-site, but off-site, as well. There are many platforms out there and these provide an invaluable service. Focus on those which cater to business information as those will offer the best fit. Establish clear policies for employee, vendors, and customers. To keep your working relationships in good standing, you’ll need an actionable plan for team members, vendors, and customers. After all, if there’s going to be a delay in paying employees or delivering to your customers, you need a way to deal with such situations. Create a workable continuity plan to follow in the aftermath. Your continuity plan should identify key and essential operations. Basically, what your business can’t do without. You might need to cross-train employees. But, your goal is to put a workable continuity plan into place. Run drills from time to time and strive to make improvements. Even the best plan is useless if it’s never practiced. So, run drills periodically to keep everyone in practice. This will help ensure things run smoothly if the time comes. What’s your business’ plan for a natural disaster? How are you preparing your company to avoid losses? Are there any other precautions you would suggest taking? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group. [shareaholic app=”follow_buttons” id=”26833294″]

How to Patch-Up a Sour Business Relationship for the New Year

January 6, 2022 No Comments

Just about any type of relationship can go bad at practically any time. Business relationships are no exception to this sad phenomenon. Even Dave Ramsey says often, “The only ship that won’t sail is a partnership.” Statistics certainly prove this point true. But, it’s not just professional partnerships. Small business owners enter into many working relationships and any one of them can go bad. So, if you experienced this type of situation, there are ways to get back to doing business together, though both of you will need to make a commitment to make it work. Alternatives, Options, and Change If the relationship is irreconcilable, or it’s just not possible to do business again (because of an extraordinary circumstance like death, retirement, or the person has gone out of business), you’ll have to rely on other options, which can mean going with an alternative. But, before you jump right into another relationship, it’s usually best to try and work things out first. The common thread among all damaged relationships is the trust between both parties has been broken. Trust is the underrated lubricant for success in business, and rebuilding that trust is the first step in repairing any business relationship.–Inc.com After all, if you had a working relationship with this individual before, you both benefited from it and it makes sense to continue so neither one of you is forced to start from scratch again. However, if this isn’t feasible or even possible, make a list of alternative options and write down each one’s pros and cons. Make some preliminary contact and explore working together. You could even give one or more a trial run in order to determine how well it does or doesn’t work. How to Patch-Up a Sour Business Relationship Now, if there is a possibility that the relationship can be reconciled, there’s no real good reason not to try. Although, it will take quite a bit of commitment from both parties in order to have a viable future. Here is some effective advice for how to mend a broken business relationship: Start with introspection. Humans are keen on shifting blame away from themselves. People not only dislike making mistakes, but they also do not like being in the wrong. So, it’s up to you to take a good look at yourself first and be willing to accept any blame you deserve. Be humble but honest in your approach. Next, try to reconnect on a casual basis. If you have mutual interests, that’s a good place to start to reconnect. If necessary, take a gradual, measured approach and go slow. When the time is right, you can have a more candid discussion about what transpired but, don’t be blameful. Agree to leave the past behind for the sake of the future. Both of you will have to keep this promise in order to have any chance of working together again. Make it a point to put sensitive topics or events off-limits and focus on your future working relationship instead. Keep an open line of communication flowing. Once you agree to work together again, don’t let the same things get in the way. Stay in regular contact so that everyone’s expectations and needs are known. This will be a great way to help the relationship flourish and be beneficial to both parties. What other advice would you give entrepreneurs about patching up a sour business relationship? Please share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Should I Sell My Business During the Downturn or Wait until the Economy Rebounds

July 22, 2020 No Comments

If you run a successful business — and have for many years — it’s understandable that during such an uncertain time as there is now, you might consider just getting out. This is particularly true for individuals who’ve enjoyed a good amount of success but just don’t want to go through another cycle that again puts them emotionally through the wringer. However, because of all of that’s going on in the economy, with things largely down, is it best to sell now or wait until the economy recovers? The Downsides of Selling During a Recession That’s really the million-dollar question. Of course, a recession will naturally be a more tough environment in which to sell. There will be fewer buyers available as small business credit tightens and even larger organizations avoid potential risk. So, you’ll probably find it a bit challenging to find a suitable buyer. The Great Recession ended in 2009 and impacted the lives of many. Now as the economy appears to be headed into another downturn, it’s a good time to review how to take advantage of the recession instead of letting it take advantage of you. —Investopedia Then, there’s another fairly obvious factor — will your business bring the amount you expect? Put another way, can you sell it for the same amount or near the same amount you would be able to during normal economic times? Also, how do you effectively market your business in order to attract the right type of buyer? (This is where an experienced business consultant/coach would come in very handy.) The Advantages of Selling During a Recession Conversely, there are some distinct advantages to selling during an economic downturn. Here are some benefits you should know about: You might be able to leverage a slight discount. Okay, so that’s probably not what you want to hear, but this doesn’t mean giving your company away for an undervalued, low-ball price. What it does mean is being able to attract qualified buyers with the promise of a fair deal. By taking this approach, you may be able to sell it faster and move on to something else, or perhaps retire, in a shorter period of time. You can separate out time-wasters from serious buyers. This is something just about any business that’s for sale encounters. People who talk a good game but never really follow through and actually take action. On the flip side, serious buyers will understand the overall economic circumstances. Therefore, they’ll be more sincere and eager to get the deal done. In other words, they’ll likely have their ducks in a row and be ready to proceed because they’re serious. Remember that you’re in control. Very few business owners who decide to sell are completely comfortable with their decision. The majority will second-guess themselves over and over again, even after they go through with a transaction. The bottom line is, if you are able to get a fair price, it’s probably not worth risking waiting any longer, because the economic environment could worsen and that will most definitely hurt your chances of selling. What other advice do you have? Please take a moment to share your thoughts and experiences by commenting and giving others valuable feedback! Interested in learning more about business? Then just visit Waters Business Consulting Group.