Many a time, entrepreneurs are full of much hope and passion and feeling eager to establish their own companies but soon, their hope is crashed with eventualities and situations in their companies. Having interviewed and observed how the company of many entrepreneurs, CEOs and managers collapsed, I am moved to write on how their own actions and inactions led to the collapse of their companies.
In this article, I have carefully outlined the top 20 ways managers and employers collapse their companies. When done reading, kindly comment to tell us your views and experience on the subject.
20 Ways Managers & Employers Collapse Their Own Company
- No Proper SWOT Analysis
As an employer, you are required to have a carefully researched work on the Strengths, Weaknesses, Opportunities and Threats of your company. The threats and weaknesses you do not pay attention to have the power to clamp down your business.
- No serious interview:
The manner and structure of your interview session paint a picture of your company’s values and principles. A well-structured interview enhances the image of the company and crystalizes a serious business environment into the minds of employees. On the other hand, where interviews are not done and all other procedures are not carefully followed, employees may not take everything seriously in the company.
- No proper orientation
Orientations are meant to introduce the company to employees, its culture, values, principles and rules and regulations governing the running of the enterprise. Where there is no proper orientation, the resultant effect could be costly mistakes that could spell the doom of the company. It is incumbent on human resource managers or employers to ensure that proper orientation is done before employees start work.
- No proper conditions of service
A company without any proper condition of service easily suffers from high labour turnover. As a manager, employer or entrepreneur, the welfare of your company should be as important to you as the purpose of establishing the company. The mistake most employers make is to value their company far above the welfare of their employees. A satisfied and happy employee is likely to yield high output and exhibit high creativity than a disgruntled worker.
- When incentives are absent
Do not turn a blind eye to little incentives that can motivate your employees to do their very best. Regardless of how small the incentive is, it is a way of rewarding the extra efforts of your employees. Do not deliberately create conditions and use tactics to scrape off the little incentives of your employees.
- Undue salary delays
Anytime you know that salaries will not be paid earlier or delayed, do not hesitate to inform your workers. Don’t be silent on their salaries and sometimes, deliberately travel in order to dodge payment until you make enough money. Know that your employees have dependents who need to survive on the salary. A little delay in the salary could cause much trouble for your employees’ dependents. Sometimes, your employees will be left with no option than to go and borrow money and promise to pay as soon as they receive SMS alert for the salary.
- Continually cheating your employees
Any employer that cheats his employees is only cheating the glory and growth of his company. Whatever thing you do to your employees may have a direct or indirect impact on your company.
- Promising and failing both employees and clients
Nobody likes Mr Promise & Fail Managers and employers. Why? Because they cannot be trusted with their words. The moment your employees and customers don’t trust you, your reputation and customer base begins to reduce.
- Failure to deliver on time to customers
The moment you begin to fail and disappoint your customers on two or more occasions, it becomes associated with your brand and people will not like to do business with you again. Note that it is very difficult for your customers to receive money these days so do your very best to always ensure customer satisfaction.
- When managers discriminate with benefits
When it comes to benefits, ensure that there is a set standard of performance and let the actual benefit be known. Once everyone knows that this is the amount that goes with this or that performance, they will know what lies ahead of them unless otherwise, it is part of your policy that management decides on such.
- Disciplinary discriminations
Treat everyone fairly in your company. Do not let some rules apply to some people while others suffer the same consequences. Let the rules be clear to everyone as well as the conditions of services. Make it a point that nobody is above the law. Do not discipline some people and leave others to get away when every employee is aware of the punishable offence committed. You begin to lose respect the moment you discriminate on discipline and your employees will lose confidence in your leadership.
- You don’t work on guest feedbacks
Business grows if only you work on guests’ feedbacks. This will enable employers and managers to know how your business is performing in terms of customer satisfaction. Some of the feedbacks are so critical and demand urgent attention. Your company is likely to crash if you do not open your doors for suggestions, feedbacks and any other pieces of advice.
- You concentrate on money than people
One of the serious mistakes top managers and employers make is to only concentrate on hitting their target and make the money without remembering that you can only hit the target and achieve it when you value people more than money.
In business, your employees should be as important to you as the whole business itself. One dissatisfied employee whom you ignore for so long can spell the doom of your company with just a little information released into the public domain.
- Not embracing new technology and better ways to do things
When technology and software are introduced, embrace them to enhance your way of doing things. Most of these software come to reduce the workload, promote efficiency and lesser time spent doing a particular thing.
- When Managers Ignore Offences and unresolved issues
As managers or employers, never take it for granted when your employees report any form of offence to you. Unresolved issues and offences may affect the efficiency of your workers, affect coordination among them and eventually spread to affect other workers which have a resultant effect on productivity, customer satisfaction and the future of your company.
- You don’t deal with issues of morality
Issues of morality should not be a playing word in the company. Sometimes, some female employees are harassed by their managers or employers. And at other times too, it is the managers or the employers that rather forcibly rape or have sex with the employees apart of coworkers also committing the same offence. Once these things are going on in the company, a little information triggered into the public domain can spell the doom of your business.
- When you are a bad example yourself
As managers and employers, know that once you know you are a very bad leader, know that that spirit will be caught by your followers. In life, the spirit of every leader broods over the followers. You cannot be a bad example and expect your followers to be good and perhaps, better than you when you are deliberately doing the wrong thing.
- Not following up on customers
Managers and employers, if you do not follow up on your star customers as well as the smaller ones, then know that the competition is very high and someone too may be targeting your customer and offer lesser price quotations. Once there are frequent follow-ups, friendship and loyalty are developed and you keep them forever as long as you continue to remain in business and do your very best.
- No serious marketing or publicity
You may be doing very well as employers of your own company but until you take your marketing and publicity very serious, you may not reach the masses of the people. Make conscious efforts to announce the presence of your business and let people know what you are into and business will kick-off.
- When you have no online presence
It will surprise you to know that many businesses that have existed for more than 5 years do not even have social media accounts. Get found online, have a good website to assist your customers to get more information about your business. A good website and a good social media account can announce your presence and market your business across the globe. You can do business in a local setting and still go global.
Did I miss anything about the 20 ways managers and employers collapse their own companies? Share your experience with us by commenting and share with friends and loved ones.