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20 Of The Worst Business Decisions Ever Made

business decision

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

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

Is Social Entrepreneurism Right For Your Business?

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Social entrepreneurism is used by for profit entrepreneurs and also not for profit startups.  It’s  popular and a considerable number of ‘for profit’ companies are also incorporating social entrepreneurship into their business strategies as a way of giving back to society.

However, social entrepreneurship isn’t clearly defined and thus it’s meaning mis-interpreted, and misused particularly in marketing initiatives.

Let’s look at it in more detail and examine the advantages or disadvantages of launching a social enterprise.

What Is A Social Enterprise?

A basic definition of social entrepreneurship is an organization which operates in order to identify, create and implement solutions to social problems. Of course, the wide-ranging nature of social problems means that social enterprises can be focused on hundreds of areas.

Whether it focuses on poverty, homelessness, health or the environment, a social enterprise typically aims to promote a cause, alleviate suffering and/or resolve serious problems which are affecting communities, countries or the population as a whole.

Why It’s Popular

Social entrepreneurship has really taken off in recent years and companies which align themselves with positive values appeal to customers. Those among us who are more discerning about where we chose to shop and what we buy, will chose the ‘feel good’ that comes with knowing our purchase can indirectly improve the conditions of those less fortunate.

If you’re a purchaser who often feels guilty for buying for yourself, then knowing your purchase is not solely about you is all you need for guilt free pleasure. Plus the feel good experience, motivates you to share it with friends, family and followers in social media. It’s a reason to buy from the same company, time and time again, and every business wants a repeat customer.

Should It Be Where I Focus My Business?

Labelling yourself a social entrepreneur can be a savvy business decision. However it’s also a responsibility that you must fully commit to, as it requires a bonafide desire to make a difference.

Commit To It

Dedicating resources and some of your business profit to social causes is not for everyone. A halfhearted approach may backfire too if your business fails to follow through in any way.

We know how fast a business can be destroyed through carelessness.  Who doesn’t remember Ratner’s fall from grace and it’s reputation irreparable.

Consumers are becoming accustomed to a whole host of organizations identifying as social enterprises and the media spotlight means self-proclaimed social enterprises do need to back-up their claims with clear goals, actions, and results.

Positives Of A Social Enterprise

Becoming a social entrepreneur can have many benefits and it can be extremely rewarding.

By identifying a worthy cause which needs exposure so it receives the support to make a difference to people’s lives, your business can help to alleviate a genuine social, culture or environmental problem.

Regardless of the size of your organization, knowing you’re helping to resolve a harmful issue can be rewarding on a personal and professional level.

Free PR, Discounted Marketing & Advertising

Perhaps more cynically, incorporate a social enterprise objective into your organization can garner positive PR.

Aligning yourself with a worthwhile cause can lead to free or reduced-cost advertising, and it can certainly help to gain support from similarly-minded individuals.

Tax Breaks

In some cases, social enterprises can benefit from tax breaks too so there could be a financial incentive to take a professional interest in social issues.

Grants

If your organization operates as a non-profit or eco-friendly enterprise, there may be certain grants you’re entitled too as well, not to mention PR-friendly awards you could be eligible for.

With so many benefits surrounding social entrepreneurship, declaring your organization a social enterprise may seem like a no-brainer. However, there are some disadvantages which can arise from social entrepreneurship.

As well as meeting your legal obligations as a company director or owner, you may need to fulfil additional requirements if you’re operating as a social enterprise. There are often strict guidelines which must be adhered to if you claim to operate for the benefit of cause and you’ll be expected to back up your claims with evidence.

Are There Conflicts Of Interest Between A Social Enterprise Versus A For Profit Business?

Not necessarily. A non-profit organization may run as a social enterprise but this doesn’t prevent for-profit businesses from incorporating social entrepreneurship into their for-profit business strategy.

Inevitably, a percentage of your revenue will need to go towards a particular cause if you claim to be supporting it but this doesn’t prevent your company from continuing to make a profit as well.

As the number of social entrepreneurs continues to grow, the definition of social entrepreneurism continues to evolve. Whilst there are a number of considerations to take into account before declaring yourself a social entrepreneur, adding a social enterprise element to your business or launching or non-profit organization can be beneficial for you, your business and your chosen cause.

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Management

What You Should Know Before Hiring an Independent Contractor

contractor

Are you thinking of hiring independent contractors?

Hiring contractors is a budget-friendly way to help support your small business. They allow you to get your business done and grow your company, without the legal and financial hassle of bringing on full-time, salaried employees.

Freelancing is taking off as more and more people want freedom in their work schedules. So there is plenty of talent out there to help your business succeed.

But hiring an independent contractor can be tricky, so don’t make any offers before you do some research and know what you’re getting into. Keep reading to learn more about what you need to do before hiring an independent contractor.

Five Steps to Hiring an Independent Contractor

Independent contractors and freelancers can help your business thrive, but you shouldn’t hire just anyone. Certain forms need to be filled out, and there are unique rules when tax time comes around.

If you’re new to working with contractors, here are five steps you’ll need to take before bringing on independent contractors:

1. Always Check Credentials

There are a lot of great contractors out there, but make sure you always vet your candidates before you make any official offers. A lousy contractor could cause some legal trouble down the road.

Always ask for a copy of their resume and to see past examples of their work. You likely wouldn’t hire a full-time employee without meeting them, checking their references and making sure they’re legitimate.

2. Fill Out The Proper New Hire Paperwork

Just like full-time employees, contractors have paperwork that needs to be filled out before they can start legally working for your business. Make sure you have a W-9 form filled out for them. This form is the contractor’s equivalent to a W-4.

3. Make Sure You Sign a Contract

Before your contractor does any work for you, you should have some form of contract or work agreement in place. This will keep you safe legally and hopefully prevent any disputes later on.

4. Paying the Contractor

Paying your independent contractor isn’t that complicated. You can either have them charge you hourly or agree on a flat rate per project. The exact price and method of payment should be agreed upon before the project starts and laid out explicitly in your contract that you both sign.

All you have to do is make sure that you accurately record every payment that you send to your contractors, and pay stubs is an easy way to do this. You can generate pay stubs online by going to a website like https://www.thepaystubs.com.

5. Give Them Proper Tax Documents

If you pay your independent contractors more than $600 in a year, you’ll need to give them a 1099-MISC form and include the total amount that they were paid. They will need this form and information to properly file their taxes.

Learn More About Running a Small Business

Hiring an independent contractor might seem complicated, but it’s easy to do if you remember a few simple things. The extra help will mean that you can focus on doing other things and helping your business succeed.

Check out the rest of our website for more helpful business tips. We have articles ranging from finance to marketing and sales!

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Management

Contributing to a Healthier Planet Through Event Sustainability

people

Have you ever thought about the waste that big events leave behind? When there is a concert, a big game in town, or even a corporate event, like an expo,  have you ever thought about all the plastic used, like drink bottles, eating utensils, plates etc. You’d be forgiven for not considering it, however, now more than ever, it’s a question being asked.

Society is putting some thinking on the environmental impacts of events, alongside their societal, economic and sometimes – depending on the type of the event – political impacts, and the development of standards such as ISO 20121 proves precisely that.

Even though events planning and management might sound like a fairly contemporary idea and business activity, it is in fact very old. Since early humans started to get organized into groups, the idea of rituals was born, and thus the organization of “events” took place. Then, when the society started to get hierarchized, royalty would have extravagant weddings, birthdays, celebrations, funerals and so on.

In other words, even though perhaps the nomenclature did not exist as such, events were planned and organized from a long time ago.

Events Planning

With the evolution and the sophistication of societies, events planning took a whole new dimension and it got more complex.

One of these dimensions is also the environmental footprint that events, especially big ones leave behind. This matter was materialized in all its seriousness in 2012, during the London Olympics, when the Organizing Committee implemented the freshly developed ISO 20121 – the first international standard on sustainable events.

The standard was developed by ISO during the time of the London Olympics because sustainability was a central idea in London 2012.

While the International Organization for Standardization (ISO) has a myriad of standards concerning the environment and environmental management, such as:

–    ISO 14001 – Environmental Management System;

–    ISO 50001 – Energy Management System;

–    ISO 14015 – Environmental Assessment of Sites and Organizations;

–    ISO 14063 – Environmental Communication;

–    ISO 14031 – Environmental Performance Evaluation and many more.

However, ISO 20121 is very specific to events, and offers guidance on how to organize an event with a minimum environmental footprint while enhancing productivity and efficiency, saving costs and increasing profit.

While being aligned with other management systems standards, such as ISO 14001 and ISO 9001, ISO 20121 is also a very good management tool to show social responsibility, or the “People” bottom line of the “Triple Bottom Lines”, famously known as the “three P’s of Sustainability”.

It is a very interesting approach to sustainability, because it does not undermine the importance of profitability, while putting the same weight on sustainability and social responsibility.

The TBL or “Triple Bottom Line”, or “Three P’s” stand for three bottom lines that a company should take into account, and which measure a company’s success: Profit, People and the Planet.

In an article on ISO 20121, the three P’s and the “Plan-Do-Check-Act” cycle, it is argued that an events management company can integrate these three and tackle a number of issues with one solution: implementing and maintaining ISO 20121.

Some of the more general benefits of implementing ISO 20121 for sustainable events include:

  • Reduced environmental footprint
  • Cost Reduction
  • Increased efficiency
  • Reduced energy consumption
  • Increase labor productivity and motivation
  • Improved image by proving to be socially reliable
  • Possibility to integrate several management systems

Moreover, while the urgency and imminence of the effects of global warming and climate change are the main reason of investing in the implementation and maintenance of the ISO 20121, the latter is also a very good PR tool which can be used to display how responsible an organization that organizes events is towards the future of the planet and the future generations.

As environmental issues have never been paid more attention to, people all over the world, both in developed and developing countries are being careful and increasingly showing interest towards doing their part to contribute to the global effort of saving the planet.

In this sense, a company which showcases interest, to the point of investing time and resources in being environmentally responsible, to interjecting their input in this matter of cardinal importance, shows alignment with the contemporary values and principles of their clientele.

If we look at it closely, a company or organization which organizes big events implements a standard like ISO 20121 and commits to not polluting the environment through their business operations, is not committing to “clean” the environment, but rather to leave it as it is. It is rather a matter of balanced principle of non-interference than a heroic act of salvation.

About the Author

Julian Kuci is the Marketing Quality Assurance Manager at PECB. He is a graduate of RIT in Economics & Statistics and Public Policy & Governance. Julian holds a diploma in Transitional Justice from the Regional School of Transitional Justice and is certified against ISO 9001 – Quality Management and ISO/IEC 27001- Information Security Management.

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