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20 Of The Worst Business Decisions Ever Made

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Some things can seem like a good idea at the time, but retrospect is a wonderful thing. Having a business is all about making decisions. In business, you can’t expect to be perfect all the time. Some of your decisions will be great, and some of them not so much. 🙂

To illustrate that point, here are 20 of the worst business decisions ever made as of April 2017. Maybe there’s been more in recent times, if you know of any, let us know.

We’ve not these bad business decisions in a particular order, take a look:

1. Somebody Should Have Phoned Home

Back in 1981, Amblin Productions called Mars and had a proposition for them. They said they would use Mars’ M&M’s in their film, for promotion of their film on their packaging. Mars gave them a straight up no, so the company used Reese’s Pieces instead.

The film was ET, which grossed nearly $800m en route to becoming one of the most important films in history. As an upshot, Reese’s Pieces saw a 65% jump in sales in the months after ET was released! Those contributions played a massive role in allowing the Hershey Company to grow from strength to strength. Over three decades later, a lot of their success can still be attributed to this particular product placement.

Quite frankly, the deal can be considered out of this world! Still, M&Ms aren’t doing too badly in spite of the notable blunder.

2. NBC and CBS Pass On Monday Night Football

Image 2 – Monday Night Football Logo

In the late 1960s, America loved Baseball. However, football was fast becoming America’s passion. Commissioner Pete Rozelle approached NBC and CBS to see if they wanted to strike up a contract. He could see the value in the show Monday Night Football. Both networks rejected the chance to strike a deal, as they didn’t want to sacrifice already popular shows like the Doris Day Show.

Monday Night Football became one of the longest running, highest rated TV shows of all time. Nowadays, ESPN pays close to $2bn per year for NFL rights, with Monday Night Football placing itself as the gem in the crown. The fact that the broadcaster still manages to churn out such high profits from the weekly show underlines that both NBC and CBS dropped the ball.

Conversely, CBS brought the Doris Day Show to its end in 1973.

3. Snoozing Motorola

Image 3 – Motorola Razr

Motorola used to be on top in the cell phone business; remember their Razr phone? However, they waited a little too long to release their version of the smartphone, allowing iPhone and Blackberry to become the new ones to watch.

Instead of focusing on customer experiences like they should have been, they focused on the aesthetic appearance of the phone. Consequently, the company’s shares fell by 90% between October 2006 and March 2009. This equated to company losses of over $4.3bn! By January 2011, the business had become defunct after over eight decades in the industry. “Hello Moto” had become “Goodbye Motorola.”

These days, Motorola Mobility is owned by Lenovo following their purchase from Google in 2014. The Motorola brand is still hoping to one day reclaim the throne. Unfortunately, in a world dominated by Samsung and iPhone, those dreams look very unlikely. They had the high ground while entering a golden era for cell phone technology. Failing to capitalize is one of the biggest business errors of the century.

4. ABC Says No To The Cosby Show

ABC was the network that decided to take on Monday Night Football. The weekly sports show was no doubt their most popular program by a considerable distance. Yet, they were still stuck in third place in the network rankings and in need of something else to help them win the ratings war.

The Cosby Show was pitched to them, but the Entertainment Division President turned it down. They claimed Cosby didn’t have a pilot or a script to show (whether this is true or just an excuse, nobody knows). The program was a hit almost instantly, ranking number 3 in the Nielsen ratings and then taking the top spot for the next five seasons. This catapulted NBC, who accepted the show, to the number one spot among the other networks. The influence of their hit show could not be emphasized enough.

While ‘the Cos’ was drawing in up to 30 million per night, it’s fair to say ABC wasn’t. With the Cosby Show and (CBS show) Magnum P.I winning the war, their presence in the most valuable time slot became almost obsolete. The head of entertainment called comedy on network television dead at the time of rejection. Perhaps the ABC man should have gone back to school.

5. The Beatles Rejection

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The Beatles auditioned at London’s Decca Records before they were big, hoping to secure a contract. The executive in charge of talent said their sound was no good. He declared that they sounded too much like ‘The Shadows,’ who were supposedly a popular band at the time.

Executives went as far to say that groups were out, especially four piece groups with guitars. He signed a local act from London instead; Brian Poole and The Tremeloes. Meanwhile, the Beatles were signed by Brian Epstein and went on to become the best-selling band in history. Moreover, the Fab Four started a revolution that changed pop culture forever.

Billions of Beatles albums have since sold worldwide, and they continue to sell to this day. Meanwhile, I had to Google Brian Poole and the Tremeloes to find out that their best song was Twist and Shout. Unfortunately, the best version is by the band that Decca Records rejected.

6. The ‘Novelty’ Telephone

Image 6 – Alexander Graham

In 1876, Western Union boasted the telegraph, which was the most advanced communication tech available at that time. The company president, William Orton, was offered the patent on the telephone for $100,00 (the equivalent of around $2 million right now). He didn’t only reject it; he dismissed it completely.

He thought it was a ridiculous idea, and wrote personally to the creator Alexander Bell, asking what they could do with an electrical novelty toy. He also said it had no commercial possibilities. It took only two years for the telephone to take off, and Orton spent the rest of his life unsuccessfully trying to challenge Bell’s patents.

As for the novelty toy, it changed global communications forever.

7. NEW Coke

Image 7 – NEW Coke

We all know what Coke tastes like. Many people have an almost emotional relationship with the drink and the brand. Coke had a centennial anniversary in 1985 and to celebrate they came up with ‘New Coke.’ Most of the formula was the same, but there must have been a notable change in taste as the sales dropped by 20%.

Many customers were perplexed by the change, particularly as the company had already established its place as a global giant. It didn’t take long before Coke realized their error and returned to the formula and taste that people love and know best. They even slapped ‘Classic’ on the can, which many believe saved the brand. The Coca-Cola Company defiantly continued to produce the new version for some years, before admitting defeat in 2002.

Thank God they did; otherwise, we could all be drinking Pepsi.

8. Greedy Fox

Although merchandising wasn’t very big at the time of the Star Wars release, 20th Century Fox still made a huge mistake here. Worse still, they have been paying for it ever since. They got George Lucas to take a pay cut of $20,000 in exchange for all of the merchandising rights to Star Wars, and all of the sequels thereafter.

Since then, Star Wars has grown into the most iconic film franchise ever. The initial trilogy has grossed billions in while the ninth blockbuster film is currently in production. Meanwhile, merchandise sales have earned billions more, making Lucas worth a reported $5.2bn himself.

For the sake of twenty grand, Fox missed out on a commercial phenomenon.

9. Blockbuster Would Rather Not Netflix and Chill

Back in 2000, Netflix co-founder Reed Hastings asked the Blockbuster executives to publicize it in their stores. Netflix proposed that they would help Blockbuster to sell their brand online too. This essentially equated to Blockbuster being offered Netflix for a mere $50 million. Blockbuster were quick to say no and slam the door in Hasting’s face. Bad move.

Less than a decade later, in 2010, Blockbuster filed for Chapter 11 bankruptcy protection. In a cruel twist of fate, the popularity of Netflix had been the main contributing factor. Nowadays, Netflix has over 90 millions users worldwide and boasts assets worth over $13.5bn.

Blockbuster, meanwhile, has closed operations in most major territories. The once colossal brand is now resigned to appearing in internet memes about life in the 80s and 90s.

10. That’s NOT A Kodak Moment

Image 10 – Kodak Logo

When was the last time you spotted somebody with a Kodak camera? Well, if Kodak had a little more urgency about them, we could all be using Kodak smartphones right now.

The company has the credit for being the first company to hold the patent for digital technology (which also has a lot to do with the smartphone) in 1975. But the camera giant decided to sit on their hands instead. They finally decided to pursue digital photography when it was far too late, leaving far too much ground to make up. They filed for bankruptcy in January 2012.

At least we have some pictures to remember them by. Maybe if they’d pursued with the digital tech that they invented, they’d still be at the top of the photography pyramid.

11. They Should Have Asked Google What To Do

Image 11 – Google Founders

By 1999, Google was already fast establishing itself as one of the major search engines. With the internet growing at a rapid rate around the turn of the century, it didn’t take a genius to realize a $750,000 investment would pay dividends. Sadly for Excite, they still passed up that golden opportunity.

Fast forward to 2017 and Google is one of the biggest companies on the internet. It’s the second most valuable brand on the planet and is worth close to $200bn. Meanwhile, the operation continues to buy out smaller ventures and grows year on year.

Ironically, only a quick Google search confirmed that Excite still exists. Considering it was once one of the leading operations in early internet technologies, it’s limited success is astonishing. The fact it still hasn’t discontinued its search engine is almost a parody of its own errors.

12. Microsoft Deemed Too Steep

Image 12 – MSDOS

In 1979, Bill Gates was a fresh-faced 23-year-old set to achieve the status of a billionaire. A businessman named Ross Perot, whose electronic data systems were worth $1bn, was offered to buy Microsoft for $40-$60m. Despite viewing the company as an attractive prospect, the entrepreneur refused to meet those prices. He said it was too steep, especially as the company had not yet reached its peak.

Perot was right, Microsoft hadn’t reached its peak. The computer giant currently has a market capital of around $343 billion according to Forbes Magazine. It is widely accepted as one of the most important brands on the planet.

Ross Perot has since been quoted saying that it is one of the worst business decisions he ever made. Cheers Ross, we couldn’t have worked that one out ourselves.

13. J.C. Penney Gets Rid Of Their Fake Pricing

Image 13 – J.C. Penney Store

The pricing tactic of J.C. Penney can be frowned upon, but it certainly helps them to sell clothing. They used to make sure their items were all marked down from a higher price, although the item would never have been sold at that price in the first place. This led customers to believe that they were getting a real bargain, instead of simply buying cheap clothing.

The New CEO that came in 2012, Ron Johnson, decided to make J.C. Penney look ‘less desperate’ by starting a new, more honest pricing system. This didn’t go down well with J.C. Penney fans, and they complained all over the internet. This harmed sales figures and brand reputation in one fell swoop.

Johnson was fired after 17 months, and J.C. Penney brought back their fake pricing system. Perhaps honesty isn’t always the best policy.

14. The Death Of MySpace

Image 14 – MySpace Logo

Before Facebook, Twitter, Instagram, and all of the popular networks, there was MySpace. The network went mainstream in 2004, with 1 million users just one month after it was launched. For internet users of a certain age, Tom Anderson was their first ever social friend. Moreover, his goofy profile pic is one that haunts is to this day.

Rupert Murdoch, News Corp Billionaire, bought it and attempted to make it too profitable too quickly. Essentially, over-saturating the site with annoying ads would prove to be its downfall. The year 2008 was Myspace’s peak, with 75.9 million unique visitors. But it just couldn’t survive following the launch of Facebook, especially as the ads alienated users.

Murdoch sold Myspace in 2011 for just $35 million, after buying it years for $580 million. The tycoon has made many great decisions in his time; this was not one of them.

15. Edwin Drake Fails To Patent His Oil Drill

Image 15 – Edwin Drake

You may not know the name Edwin Drake, but in 1858 he could have been one of the wealthiest men in America. He was determined to find a way to get to the oil that everybody wanted. So he partnered up with a blacksmith from the area and together they made a drill that did just that.

It took them weeks to come up with the perfect design, and it eventually helped them get to the black gold that they so desperately wanted. There was just one major problem; Drake hadn’t secured a patent. In spite of his success, he was later fired and then lost all of his money on Wall Street.

Failing to secure a patent on his drill has cost Drake and his family millions of dollars. Meanwhile, the oil industries are worth billions thanks in part to the Drake legacy.

16. Schlitz Beer Goes To…Schlitz

Image 16 – Schlitz Logo

In the 1970s, Schlitz was one of the biggest beer manufacturers of all time. They came second only to Budweiser and boasted a rich history stretching back over a century. In a bid to meet growing demands, Robert Uihlein, Jr made the decision to use cheaper ingredient to increase production speeds. Sounds good on paper, doesn’t it?

Unfortunately, even a drunk person couldn’t handle the resulting product. The beer started to form floaties in the bottom, which would then congeal into a thick mucus. Schlitz didn’t recall these beers, even after realizing the terrible mistake. They eventually gave in, but not before 10 million cans had been shipped. By this time, the damage had been done.

The company and its assets were sold as profits sank to the bottom of the barrel. Considering the profits to be had by some of the beer manufacturing giants, the Milwaukee company had a shocker.

17. Atari Doesn’t Like Apples

Image 17 – Atari Logo

Nowadays, Apple is the biggest brand on the planet. But once upon a time, the operation was completed from a garage. During those humble beginning, Steve Jobs and Steve Wozniak wanted to sell their personal computers to Atari. However, the then-computing giant rejected the offer.

The two Steve’s subsequently said that Atari could have the computer as it was built from their parts, and asked to work for Atari instead. They still said no. After some rocky moments during the first 20 years, Apple became the biggest brand in computing and consumer electronics. Atari, meanwhile, is still best known for Pong.

Atari is still in existence, but they never truly recovered from the video gaming crash of 1983. If only they’d branched out by taking the Apple.

18. The M*A*S*H Drop Out

Image 18 – M*A*S*H Cast

In 1972, M*A*S*H was a surprise hit for 20th Century Fox. However, a few big stars dropped out after a couple of seasons and this made Fox panic. They decided the show wouldn’t live much longer and sold rights to the old seasons to various local TV stations, for a total of $25 million dollars.

The show’s popularity didn’t fade, and the show continued for a total of nine years and 251 episodes. Television stations raked in $1m per episode while Fox Television didn’t see any of those revenues. Moreover, reruns of M*A*S*H are still broadcast even to this day.

In fairness, though, at least the production company continued to provide great episodes until the very end.

19. Quaker Oats Buys Snapple

Image 19 – Snapple Logo

Buying out a company for $1.7bn is a brave call at any time. Doing it when it’s reportedly worth less than that figure is even braver still. However, doing so when the brand in question is already in free-fall crosses the line of bravery into stupidity. That’s exactly what Quaker did with Snapple.

The food company couldn’t save the floundering Snapple brand. They messed up the branding and couldn’t persuade distributors to keep Snapple in spite of their offers and the stockpiled up. This led to it entering dollar stores while vast quantities ended up in landfills.

Snapple was being given away on the street for free as sales still plummeted in 1996. Eventually, Quaker sold the brand to Triarc for $300 million. That’s $1.4 billion less than they paid for it 28 months previously.

20. The K-Mart Wal-Mart War

Image 20 – K-Mart Logo

The war between K-Mart and Wal-Mart embodies the importance of customer service perfectly. As the two companies went head to head in the 1980s, K-Mart went for an aggressive publicity campaign to raise awareness of their store. Meanwhile, Wal-Mart (not having the cash to do the same) focused on their stocked shelf efficiency and immediate checkouts instead.

Wal-Mart won the war and K-Mart haven’t been able to keep up since. Today, Wal-Mart is the far superior company with over 11,000 stores and 2.3 million worldwide employees. Despite losses in recent times, it generates nearly $500bn in revenue. In comparison, K-Mart draws in around $25bn from 735 scores.

K-Mart had all the assets to win the war but was let down by poor tactics. Subsequently, they couldn’t find a way through the Wal.

No one can expect to make the right decision all the time. However, it just goes to show that a little curiosity and open-mindedness, and a little less rigidity and stubbornness could take you places! These decisions may have been some of the worst ever made by some entrepreneurs, but they turned out to be pretty good for others!

Suggested Next Read: The man who destroyed his multimillion dollar company in 10 seconds


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Image 1 – wikipedia.org – Fair use, https://en.wikipedia.org/w/index.php?curid=8370268
Image 2 – wikipedia.org, By Source, Fair use, https://en.wikipedia.org/w/index.php?curid=51941117
Image 3 – wikipedia.org, Fair use, https://en.wikipedia.org/w/index.php?curid=51941117
Image 4 – wikipedia.org, By [1], https://en.wikipedia.org/w/index.php?curid=921410
Image 5 – wikipedia.org, By Parlophone Music Sweden – http://www.mynewsdesk.com/se/parlophone-music-sweden/images/the-beatles-magical-mystery-tour-pressbild-1-146055, CC BY 3.0, https://commons.wikimedia.org/w/index.php?curid=39773859
Image 6 – wikipedia.org, By Gilbert H. Grosvenor Collection, Prints and Photographs Division, Library of Congress. – http://www.americaslibrary.gov/jb/recon/jb_recon_telephone_1_e.html, Public Domain, https://commons.wikimedia.org/w/index.php?curid=1389089
Image 7 – wikipedia.org, By Can: The Coca-Cola CompanyPhoto: user:Jetijonez – Jetijonez (talk · contribs), Public Domain, https://en.wikipedia.org/w/index.php?curid=32684553
Image 8 – wikipedia.org, By User:KAMiKAZOW – Transferred from en.wikipedia to Commons., Public Domain, https://commons.wikimedia.org/w/index.php?curid=4617117
Image 9 – wikipedia.org, By Wikimedia Commons – https://upload.wikimedia.org/wikipedia/en/4/46/Blockbuster_logo.svg, Public Domain, https://commons.wikimedia.org/w/index.php?curid=51335969
Image 10 – wikipedia.org, By Eastman Kodak – http://www.kodak.com/ek/US/en/Our_Company/History_of_Kodak/Evolution_of_our_brand_logo.htm, Public Domain, https://commons.wikimedia.org/w/index.php?curid=55328013
Image 11 – wikipedia.org, By Joi Ito from Inbamura, Japan – Eric Schmidt, Sergey Brin and Larry Page, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=4083860
Image 12 – wikipedia.org, By The original uploader was Andrewpmk at English Wikipedia – Transferred from en.wikipedia to Commons by Codename Lisa., Public Domain, https://commons.wikimedia.org/w/index.php?curid=26299991
Image 13 – wikipedia.org, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=593445
Image 14 – wikipedia.org, By News Corporation – Extracted from creative.myspace.com/dk/dma/downloads/DMA08_Program.pdf, Public Domain, https://en.wikipedia.org/w/index.php?curid=17531495
Image 15 – wikipedia.org, By Unknown – Ohio Department for Natural Resources – see [1] (copied from n.wikipedia.org), Public Domain, https://commons.wikimedia.org/w/index.php?curid=1048454
Image 16 – wikipedia.org, By Source (WP:NFCC#4), Fair use, https://en.wikipedia.org/w/index.php?curid=47174120
Image 17 – wikipedia.org, By Atari, Inc. – Atari, Public Domain, https://commons.wikimedia.org/w/index.php?curid=21030954
Image 18 – wikipedia.org, By CBS Television – Transferred from en.wikipedia to Commons by We hope using CommonsHelper.(Original text : eBay item photo frontphoto back), Public Domain, https://commons.wikimedia.org/w/index.php?curid=16354650
Image 19 – wikipedia.org, By Source (WP:NFCC#4), Fair use, https://en.wikipedia.org/w/index.php?curid=46273286
Image 20 – wikipedia.org, By Kmart – Extracted from [1] by Kalel2007, originally hosted at the English Wikipedia., Public Domain, https://commons.wikimedia.org/w/index.php?curid=4652461

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Management

How Your Business Can Help The Planet

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Climate change is real, so don’t let any politician tell you otherwise. Their denials are most likely motivated by their personal goals, not what’s right for our planet.

Forbes reported from a recent Intergovernmental Panel on Climate Change that there is still optimism that the increase in global temperature can be kept to just 1.5°C, but it required a massive commitment to reducing emissions to zero by 2050.

Is Time Running Out?

Milestones needed to be met before that date to show we’re on track including the commitment to the Paris Climate Agreement signed in 2016. 195 UNFCCC signed the agreement and a year later US President Donald Trump declared his intention to withdraw America, one of the world’s highest polluters.

There is a chance America’s withdrawal won’t happen as they have to stay in the agreement until November 2020 just before Trump’s first term ends, and with a new President with more realistic views on climate change they could reverse the withdrawal – fingers crossed.

What’s disappointing is the US is already acting as if it’s no longer part of the Paris Climate Agreement with rises in emissions. Most Americans believe in climate change, so have you see any notable change happening your industry?

Own Your Carbon Footprint & Change It

There are many actions businesses can take to make a difference to their carbon footprint, especially when they are taken collectively, i.e. Businesses acting together. You’ve heard the saying: the whole is greater than the sum of its parts; so in this blog article, we mention some actions you can use in your own business and share your experiences to inspire your peers to join you.

The benefits are not just for our planet; there’s also a great business case for making changes too. Consider the benefits that will arise from changing your policy and use of energy, transport, and travel. Reducing costs and doing right for future generations that’s inspiring and worth sharing.

Start With A Plan

Develop a Climate Change Action Plan – and this will be a work in progress. It will take time, but you need to start somewhere and make a commitment to reaching some milestones that reduce your emissions.

Teamwork

Assign a team to the campaign project and choose a leader. It will surprise you just how much interest there is in doing good and how inclusion in the project will raise the overall productivity and staff satisfaction.

Open Invitation Meetings

Regular meetings with an open invitation so all workers can attend and participate in the discussion. Maybe the ideas presented will see rewards for the business, which may include customers electing to buy from your business due to its climate change policy, over your competition.

Attracting staff may become easier too as they want to get from their work than just their pay packet.

Supply Chain

Consider your supply chain and where change can happen. You’ll be surprised where you can get a win-win, with cost savings and positive change in worker well being. Mentioned earlier in this article are areas all businesses can start on. Travel, transport, and energy-use are within the control of the business, so a commitment to use less or a different approach will reduce your carbon footprint and provide other rewards.

Energy

Where is your business using energy and where’s it coming from – i.e. the source? Consider moving using solar power and renewable energies.

Would you need your current premises if your staff could work from home and desk share when they’re in the office?

Transport

Swapping out your petrol or diesel vehicles for electric cars, and trucks.

Technology

Use technology to cut down on your business travel, and it’s carbon footprint. Chatbots, Videochat or conferencing, VOIP, are excellent tools for online meetings with clients, suppliers and for selling your services. Imagine the cost savings for a business without long-haul travel!

Summary

Climate change is real and time is running out before we experience catastrophic and devasting outcomes, with the loss of many lives. There is a lot we can control to reduce emissions and at the same time, reap the rewards for standing up and being counted as a climate-conscious enterprise.

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Management

Secrets of Good Business Management

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Every entrepreneur who wants to achieve a relevant profit margin should keep in mind that the secret to success is good management. Regardless of the size of the company, it is of fundamental importance that the manager be able to integrate all of his or her personality development in order to boost growth.

A good administrator personality should keep in mind that flexibility is required to accept the constant changes that occur in the market, so it is vital to upgrade and acquire the skills needed to implement those changes within your business.

Based on this assumption, we selected a few secrets to an efficient business management that will certainly help you excel in your business. Get to know them:

Do a market study

For a venture to achieve the expected positive results, it is of the utmost importance that some positions are taken into consideration by investors. The market study emerges in this scenario with the objective of evaluating the economic viability and offering the evaluation on the effectiveness or not of the implementation of the company or the product or service in which it is wanted to invest.

In this sense, market research emerges as a great tool, since it enables the business manager to understand the operation of competing companies in terms of price, costs, payment deadlines, and thus, to be able to gather some indicators that will serve as parameters to ensure a differential and get better results.

Gain skills in business management

The competition, as well as the great instability in the market, makes it necessary for the business manager to have the skills and abilities that stand out from other entrepreneurs in the same segment.

In order for a good performance to be achieved, the administrator must acquire characteristics and postures capable of doing so if he excels and obtain the desired success for the company. We have selected some practices that will assist you in this process:

Make improvements

A good manager should always be looking for new ideas, new concepts and personal developments. Always be in search of information, knowledge. So stay current, make specializations, and deepen your knowledge.

In this way, you will not become obsolete and bring the innovations that your company needs to stand out from the competition.

Learn to Lead

Being a leader of a corporation carries responsibilities for which the professional is not always prepared. A true leader is not the one who gives only orders and results, but rather, the one who uses communication to get the support of the collaborators and who knows how to argue and solve conflicts in search of positive results.

Do a self-assessment

The entire process of company growth depends on business management, so make a self-assessment of the effectiveness of your contribution within the company. Also try to set personal goals to achieve the desired goals.

Managers must have broad knowledge in the processes they are managing so that they do not lose efficiency and control their execution.

Value your employees

Just as the manager’s role is fundamental to the firm’s solidity, employees have a primary role in executing actions.

It is common consensus that the valuation of employees enables the success of a business. It is up to managers to assess their potentials and motivate them so that they integrate into the ideal of that growth.

A good alternative is to maintain direct communication by emphasizing the qualities of each one, making them feel recognized for their work. Holding meetings where they can make criticisms and suggestions is also a great way to engage employees.

A company that offers good working conditions will keep the team motivated, enabling the generation of profits expected by the entrepreneur.

Invest in financial management

The actions of the financial sector of a business involve all planning and analysis regarding the company’s equity, investments, inflows and expenses. These actions have the objective of increasing stockholders’ equity and increasing the capital invested.

An efficient business management should pay particular attention to the financial managers of the company, because the lack of training of this professional can cause problems to the development of your enterprise. Among the actions of a good financial manager are:

The preparation of a balance sheet , without which it is possible to evaluate the value of the company’s net worth.

Make analysis and financial planning , bringing the possibility of projections about the future of the business.

Know where to invest the resources, so that the expected return is viable.

With all this, so that a company has effective financial management, it must be based on a plan in which goals, objectives and strategies are the pillars, enabling the reduction of risks and capital losses and reaching the goals expected by the entrepreneur.

Stay tuned to cash flow

Also included in the context of financial management, cash flow deserves special attention, because it is through this tool that we calculate capital inflows and outflows of a company, being essential for day to day business management.

Through the cash flow it is possible to know the values ​​that the company has, as well as the possibility of future projections of the assets (assets, credits, rights) and liabilities (suppliers, loans, fiscal obligations) of the business in a certain period of time.

For this cash flow to be effective, it must be calculated daily. Only in this way is it possible to keep track of the amount of capital existing in the company, as well as its obligations.

Take care of marketing

The Positive business management is only achieved when managers acquire knowledge about the market and customers. The marketing functions within an enterprise as a wild card, identifying customer preferences and requirements and market needs.

Look at some of the marketing functions in a business:

Tracing the profile of potential customers

Assessing consumer needs and preferences is a key. With the strong competition in the business world, it becomes indispensable a tool where managers can capture the desires of customers.

One of the ways to draw this profile is through market research and also the creation of personas, which, in general, is the representation of your ideal client. In this guide , you can follow a step-by-step approach to building people efficiently.

Caring for the company’s reputation

Marketing has the function of advertising and creating actions that promote a good reputation of your company and thus, bring positive impacts to the loyalty of its customers, as well as to capture new ones.

Creation of strategic actions

It is through marketing actions that it is possible to generate new sales, new contracts. In this way, the goals of the company can be achieved. The manager must work to develop actions that take into account the challenges of the market and integrate the sectors responsible for obtaining new clients.

Pay attention to the knowledge management of a business

As important as any other sector of the company, the management of knowledge , that is, of all informational content and business documents, is not always as simple as it seems, one has to fulfill a series of organizational techniques.

The business manager should try to insert this practice within the company in order to save the search time, making the information available more quickly.

Implement a structure where physical and electronic files are arranged so as to facilitate the company’s day-to-day operations. Adopt with your employees a culture of preservation of this material.

There are several advantages to having an organized file, among them the ease in identifying the information, the agility and the convenience for the queries.

Be innovative

Given the competitiveness in the market, the business management that stands out is the one that has some differential to offer customers and consumers.

The art of innovation is achieved with much study, planning, analysis and refinement. Only then will you know if that project you have in mind will be feasible for your company.

Another way to implement the processes of innovation in a business is to surround yourself with people with good ideas and committed to your business.

So, let your collaborators’ creativity come out, listen to what they have to say. Motivate them, challenge them, congratulate them on results, and believe in their potential. This will bring the positive results you both expect.

At this point in the reading you must have realized that there is no magic formula for the success of an enterprise. There is a lot of work and techniques that, if followed, can make you succeed.

Also, do not forget the primordial for any company: to build your way, you will need knowledge. Research, perfect yourself, only the knowledge of the product or service you want to offer will make what your business advances.

Risks do exist, and must be taken into account, but with determination, willingness and common sense to make assertive decisions in business management processes, you will surely achieve the desired success!

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Management

Offshoring Versus Outsourcing Which Is Best For Business?

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Businesses need to be competitive to make a profit so they’re always seeking solutions that reduce their overheads. Offshoring core activities is one way to reduce overheads, keep control of a business’s intellectual property and keep their data secure.

In this blog article, we look at offshoring and outsourcing and we consider if there is a right and wrong time for a business to consider either option.

Offshoring Explained

There are countries that are considered the back office of major corporations located somewhere else.  China, Vietnam, India are some of the nations that provide goods production and professional services for businesses located in western countries like USA, Canada, UK, and Australia. These countries are used for offshoring and outsourcing.

Is Outsourcing Another Name For Offshoring?

The short answer is no, outsourcing is quite different in its workings to offshoring.  With outsourcing, your business has essentially signed a contract with a service provider to deliver the services on behalf of your business.

The similarity between the two services is the business or team providing the manufacturing or professional service is usually located out of state or in another country to that of the business.

Where in the business is full outsourcing is popular?

Server and Website Hosting is an area we’re all familiar with and most businesses outsource this service.  The other areas deemed more sensitive and systems critical to a business also often outsourced are:

  • Technology hardware & software
  • Data communications
  • Software development
  • Bookkeeping
  • Payroll services
  • Administration

Why Offshoring?

There is more control over the process with offshoring as the business can dictate the terms and use its own rules and systems.

The starting point is to choose where you want your business process to be carried out, i.e. in which country and area.

Setting up a team or purchasing a business in another country to roll out the service is not as challenging as it might appear as countries like those aforementioned are used to the activity.

The offshore team will work exclusively for the one business and therefore adhere to their methodology.

An example of where this activity is prevalent today is in the professional services sector.  Law firms and accounting practices readily place services offshore to reduce staff costs. An Accounting firm will locate part of its practice in a country and hire qualified workers i.e. accountants who cost less than their peer in the area or country the Accounting firm is located.

Is there a right or wrong time to consider outsourcing or offshoring?

Timing Is Everything

Yes, as timing is everything especially with everyone connected online in social media.

The reputation of a business can be damaged if clients start complaining of a negative change in the service.  Therefore a business needs to do a thorough analysis and weigh up the pros and cons of moving core processes or systems offshore or into the hands of another business entirely as is the way with outsourcing.

Managing the move will be challenging as people don’t like change especially if it costs them time.   Just think of how annoying it is to visit a website or use the App you use regularly only to find its user interface in a new design and it’s functionality changed.

Learning takes time and requires patience so it’s important for all businesses moving to an offshoring or outsourcing model mark sure their staff and end users are managed during the transition and that their experience is satisfactory with knowledge of much better service on its way.

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