A SYNOPSIS Of Common Bad Business Practices For Entrepreneurs IN ORDER TO AVOID

Don’t Indulge in Bad Form! All businesses take decisions and action to further their passions. Some businesses however try to take unfair benefit of the business environment to further their business interests by acting in ways inappropriate to the accepted norms and conventions. Such bad actions and practices can stem from any facet of company operations, whether it is financial personnel, tactical, operational, or moral.

A strong school of thought regard corporations as super claims who achieve their usually nefarious ends at all costs, with scant regards to the laws and regulations of the land or suitable social methods. Companies accused of corporate bullying and by extension indulging in bad practices usually fail to discharge their corporate social responsibility.

In a free economy, companies can fix the price they want their products, and a high mark through to products may be part of a genuine business strategy. People look down upon businesses that indulge in profiteering however, especially when profiteering in items that the business could not produce without exploiting natural resources or without the support of the city.

Some businesses holiday resort to actions such as defective billing or selling products by concealing defects to rein in an easy buck. Of whether such works happen intentionally or inadvertently Irrespective, it causes serious dent to reputation and trustworthiness. Customers at the wrong end of an inflated bill or a damaged product would not only cease to activate the business in future but would spread the term around.

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One example of deceptive billing methods occurs whenever a bank bills loan repayment above the standard EMI made by clients to lessen the principal as advance EMI payments. Many entrepreneurs make an effort to involve themselves in all aspects of business procedures. Even when the intention behind such micromanagement is to ensure even operations, the total result is counterproductive. Micromanagement results in employees losing both their enthusiasm and the ability to take initiative, leading to poor customer engagement, customer support, and customer care, and the organization failing to tap the creative and intellectual vials or its human capital.

Moreover, the owner cannot possibly do everything, leading to insufficient well-timed decisions and attention on critical business issues. Skillfully run companies have procedures and systems set up and apply them regularly. Companies with ad-hoc measures and who indulge in managing by exception base their decisions on the whims and fancies of the entrepreneur or a senior manager.

Such businesses take inconsistent decisions without due diligence or considering all areas of the issue, leading to poor decision-making. Bad human being resource methods such as poor wages and poor working conditions creates bad PR and leads to reduced patronage that offsets a lot of the monetary cost savings gained from such bad procedures.

Running sweatshops is outright illegal, but even companies that source from offshore vendors who indulge child laborers in dangerous working conditions have gained public ire. Even otherwise, offering preference to revenue over reputable employee rights always leads to bad publicity and possible legal action. For instance, a company putting employees’ health at risk by not investing in adequate protective gear or security apparatus run the chance of not simply bad publicity and skilled workers shunning the company, but also huge compensation claims.

Many business owners take part in favoritism and preferential treatment. While preferential treatment of high-value customers may be part of business strategy, playing favoritism among employees, whether or not some employees add more value to the business than others rank high in the list of bad practices running a business. Employees expect a level performing field. If some employees fail to add value, the problem lies with faulty recruitment, inadequate training, or ineffective business procedures that neglect to touch potential rather than with the employee. The management playing favorites among employees leads to a lack of morale and commitment and saps the employee’s eagerness to take the initiative.