Business Education

I Found Out an Employee has been Doing Something Unethical but Not Illegal – Now What?

First, this has to stop right away. And second, it has to stop because you definitely don’t want this type of practice to be representative of your business – even if it is somehow benefiting your customers. (For example, cheating a manufacturer’s rebate.) Even if it’s small, the very fact that your employee has to do something that isn’t ethical makes it wrong. You already know this, which is precisely why it bothers you in the first place. Regardless, it can be very tempting to let certain instances slide. But, you must think about the possible consequences and repercussions should this go bad. So, let’s get into a few suggestions for what to do when you discover an employee is doing something unethical but no illegal.

Ethics and the Law

There’s no question that just because an act isn’t ethical doesn’t mean it’s necessarily illegal. After all, the law doesn’t deal strictly with morality. (Although a lot of laws are indeed based on standards of decent behavior.) Notwithstanding, you instinctively know when a practice isn’t ethical and just because there isn’t a direct on-point law, that doesn’t mean it’s all right.

The experts in leadership and management at Michigan State University emphasize that it’s important to consider who is involved with the situation when dealing with unethical behavior in the workplace. Is it just one person involved or are there several people connected to act? —Houston Chronicle Business Management

However, there could be illegality. What might seem to be mostly harmless could be against the law. Obviously, this is exactly what you should know. Take the time to research the subject and find out if there are legal issues – be they criminal, civil, or possibly, both.

How to Deal with Unethical Employee Behavior

If you learn that what’s going on isn’t illegal but is still unethical, you have some options. Unfortunately, none of them are particularly pleasant. But, your business’ integrity could well be at stake. Here are a few ways to deal with unethical employee behavior:

Arm yourself with facts. Before you act on the issue, be sure to have all the facts at your disposal. If necessary, write them down to become familiar. You’ll undoubtedly have to confront this employee and he or she will probably have at least a few justifications and/or excuses. So, be ready to counter and push back with the facts.
Talk with your employee. Speak with your employee and your HR leader. If your company doesn’t have such a department, just speak with him or her one-on-one. Be polite but firm. And, listen to what he or she has to say. They’re likely justifying their actions and it might be something that’s easily fixed.
Establish a new company policy. You may have to establish an entirely new company policy. Or, make adjustments to an existing one. Regardless, be sure that every single employee knows so this doesn’t continue.

What other suggestions do you have for dealing with this type of situation? Please share your thoughts and experiences so that others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Tesla is Now Asking Suppliers for Cash Back, Here’s How to Avoid that Scenario

August 14, 2018 No Comments

Tesla is back in the news. Headlines proclaim the electric car manufacturer actually approached some of its suppliers, requesting cash back in an effort to realize profitability. Elon Musk quickly reacted to the reports. Now, it’s a he-said-she-said storyline. But, that’s just another fight the media will happily play up for clicks and tune-ins. The reality is Tesla is not a profitable company. Even though it enjoys so much buzz and customer loyalty, it can’t turn a profit. The Top Reason Small Businesses Fail The company reportedly burned through $1 billion in a quarter. And, it’s promised to bring its expenditure to under $3 billion this year. That, after it went through $3.4 billion last year. Not to mention, it lost $710 million in Q1 of this year alone. Just as good cash flow keeps a business afloat, poor cash flow can sink it. In fact, poor cash flow is a big reason why one in every four businesses doesn’t make it past the first year. And why more than half don’t survive past the fifth. —Fresh Books.com It gets worse. The company might not reach a stock conversion price of $560.64. Which means it will have to shell out $230 million to obtain a convertible bond in November. Its stock fell by nearly 4.5 percent just in the last twelve months and continues to struggle. This is an important lesson to those who’d like to start a small business because it’s one of the main reasons startups fail in the first place: inadequate cash flow and reserves. Problems with cash is typically the reason small businesses fail. Top Small Business Cash-Flow Mistakes to Avoid So, if cash is the biggest reason new companies fail, then how do they actually get into such a pickle? Well, it’s not just avoiding bad business ideas (although that’s certainly helpful), it’s more about being smart with money in the first place: Impulse spending. We all know retailers embrace this practice. But, it’s far too easy to fall into the trap of impulse spending, particularly during the startup phase. It’s also a shortcut to failure because it’s the ultimately lack of responsible cash management. Past-due receivable apathy. When cash is rolling in, it’s very easy to let an invoice or two or more slide. After all, there’s plenty of money coming in, so why bother? It’s important to stay on top of receivables because it sends the wrong signal when you become apathetic. Plus, you might be able to put that money to good use in the future. Not sticking to a real budget. You wouldn’t spend more money that’s in your personal bank account. However, when it comes to business finances, too many owners just don’t adhere to a realistic and strict budget. And, that’s a recipe for failure. Failure to put some cash aside. Feast or famine. That’s an old cliché but it’s entirely true for many businesses. That reality means it’s best to have some cash on-hand when needed because it’s very likely that time will come. What other ways do small business mishandle cash? What other advice would you give about maintaining positive cash-flow? Please share your thoughts and experiences! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Top 5 Entrepreneurship Myths You Probably Believe but Shouldn’t

March 12, 2018 No Comments

Entrepreneurship myths are everywhere. They populate the minds of anyone who dreams of striking out on their own. Heck, even successful entrepreneurs believe some of them. (At least at some point in their journey.) The reason entrepreneurial myths are so widely believed is because they involve risk. And, everyone is risk-averse (to one degree or another). Therefore, these misconceptions live on and keep good people from following their passions. But, you don’t have to believe them. Two Common Entrepreneurship Myths Let’s start with two common entrepreneurship myths; then, we’ll get on to the big three. First is the old nagging feeling that money is the single biggest obstacle. Nonsense. You can start a business in about 10 minutes using social media and a little imagination. Now, you’ve got to know how to use social media to effectively promote your business. But, the point is, you can find a ton of free and really cheap ways to get things going in a short amount of time. As people are trying to navigate away from the “corporate jungle” towards the land of supposed “entrepreneurial utopia,” a lot of misconceptions arise. Perhaps this has to do with the media, advice they have received or what is heard through the grapevine but often these insights can derail a person from taking the plunge in the startup world. Or cause them to jump on the entrepreneurial bandwagon, when they have no business doing so. —Entrepreneur.com Another common entrepreneurial myth is that making more money is the best motivation. This simply isn’t true. And, it’s actually somewhat dangerous. If you’re only motivated by money, your heart and mind are in the wrong place. Of course, there’s nothing wrong with earning a better living but it’s foundation can’t be greed. 3 Biggest Entrepreneurship Myths The fact of the matter is money isn’t an obstacle and it’s a bad motivator. But, this isn’t the only challenge people let get in their way of realizing their dreams. Now, let’s get into the three biggest entrepreneurship myths people believe: The more customers, the better. At the bottom of the top three is the notion that more customers means more success. Which in turn means, the better. Two words about that: Not. True. Quality will always trump quality. What’s more, it’s a risky situation — especially early on. You’ll spread yourself too thin and that will only hurt you in the long run. Focus on the ones who make it a pleasure and let go of those who waste your time or have unrealistic expectations. You need an inherent entrepreneur trait. Some people actually subscribe to the notion there are “born entrepreneurs.” Of course, there are individuals who have a knack for it but that doesn’t mean everyone else is shut out. It just takes work, self-confidence, and most of all, persistence. Those who go forward and don’t give up have a much higher success rate than those who don’t. It just takes one great idea to make it work. Now, we’re at the biggest of all entrepreneurial myths. And, that’s believing you only need one great idea. While this is a key element, it won’t work as a magic bullet. Lots of people have great ideas. The trick is to define it and market it effectively by testing the market and remaining persistent with discipline and consistency when things get difficult. What other entrepreneur myths do you think people believe? What suggestions do you have to get past them? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

It’s Said Style without Substance is Bad, But Is the Opposite Actually Better or Even Worse?

August 8, 2024 No Comments

It’s Said Style without Substance is Bad, But Is the Opposite Actually Better or Even Worse? We’ve all heard “beware of style over substance.” It’s a common expression that means a person may appear to have all the answers but in reality, there is very little or nothing behind his or her facade. Likewise, it also describes someone who puts greater value on appearance than depth of knowledge or skill. In either case, it fools others into thinking an individual possesses something special when in fact, they aren’t extraordinary after all. This distinction is particularly important when it comes to choosing a business partner, a vendor, or even a client. So, entrepreneurs need to be aware and alert of the telltale signs and more critically, what the downsides of each personality are. Sure, it seems obvious that all style and no substance is bad. However, it’s equally vital to understand that the opposite can be harmful, too. The Dangers of Style Over Substance A person who is all style and no substance may have all the necessary skills. But when the moment of truth arrives, he or she is lost. However, that’s a broad generalization of a greater specific. So, let’s take a look at some of the particular reasons why a businessperson with all style and no substance can be problematic: Lack of follow-through. They might make grand promises or claims but fail to deliver on them due to a lack of underlying strategy or execution skills. Superficial relationships. They may prioritize networking and appearances over building genuine connections, leading to fleeting and ultimately unproductive partnerships. Misalignment with company values. A style-over-substance leader may struggle to foster a culture of substance and results if a business’s success depends on innovation or problem-solving. Short-term thinking. They might focus on quick wins and flashy projects rather than building a sustainable and long-term strategy for the business. Potential for ethical lapses. Without a strong foundation of integrity and competence, such individuals might resort to unethical tactics to maintain appearances. It’s important to note that style and charisma can be valuable assets in business. However, without substance to back them up, they can be detrimental to long-term success. Downsides of a Substantively-Focused Business Partner with No Personality or Style Now, we’ll get into the opposite scenario. Although people are familiar with the shortcomings of style over substance, what are the downsides of an individual who has very little or no charisma? While substance is undoubtedly crucial in business, a complete lack of personality or style can also present big challenges, such as the following: Limited networking and relationship building. Someone with little personality might need to work on building rapport with clients, partners, or employees. Effective business relationships often involve personal connection. Lack of creativity and innovation. A purely analytical approach can sometimes hinder creative problem-solving and out-of-the-box thinking. Difficulty adapting to change. A rigid, no-nonsense approach might make it challenging to adapt to changing market conditions or unexpected challenges. Poor communication. A lack of personality can sometimes manifest in poor communication skills, leading to misunderstandings and inefficiencies. Uninspiring leadership. If the person takes on a leadership role, their lack of charisma could demotivate employees and hinder team morale. Limited market appeal. In customer-facing roles or industries focused on branding, a personality-devoid individual might struggle to connect with the target audience. Again, it’s important to note that a balance between substance and style is often ideal. A strong foundation of knowledge and skills combined with effective communication and interpersonal abilities can create a highly successful business partnership. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at (602) 541-1760, or, if you prefer,