Each year, businessmen and entrepreneurs alike learn about the business world a little more. Even though there are several books, Google searches and dummies about the industry, knowledge gained from true experience is much better. And just as we learn, we are also making mistakes each year.
Being in the business or corporate realm means you're willing to take the risks. And since an entrepreneur is a profession to learn as you go, here are 5 major business blunders this 2015 that you don't to repeat in the New Year.
1. Don't Cheat
Remember the Volkswagen Emissions Scandal? Well, it was deemed as one of "the most brazen acts of bad business behavior" this 2015. According to Vanity Fair, the German car manufacturer admitted that 11 million of its cars had software that can sensed when a car was being tested and would activate equipment to lessen emissions. But once in normal driving, experts discovered that some automobiles emitted almost 40 times the legal levels of nitrogen oxide.
Unfortunately, the company got caught and the California Air Resources Board started an investigation, which resulted to the company's first quarterly loss as well as reserving nearly $7.3 billion to cover the costs of the whole mess. So before you cheat, think first because payback can really be a b-ch!
2. Don't be lax and check your network's security regularly
Heard about the Sony and the Ashley Madison hacks controversies? In today's hack-intense society, everyone lives with some degree of fear that their personal data will be stolen. But what was unexpected was the day when extramarital affairs, sexual preferences and exchanges with partners would be made readily available online. Thus, the Ashley Madison hack scandal this summer became a nightmare to almost 37 million people.
As for the Sony hack, it is just a way to remind people to be careful on what you write in an email or simply what you say. Because you'll never know when it will come back to bite you and no damage control can ever be done to reverse the results. So starting today, be extra careful and check your network's security regularly.
3. Never release a product that's half-baked
No matter how desperate you are to get it to the market, never ever release a product that's half-baked. One good example of this business blunder was Apple's mapping system, CNBC noted. Since there have been growing tensions between Apple and Google regarding the default mapping application, Apple released an app of its own. The problem? Locations were mislabeled and some roads weren't shown. But while the problem was already resolved, Apple's mapping misstep was an embarrassment.
4. Never forget that social media is a forever-changing medium
Social media changes every day, in so many different ways and no one is a social media expert. Hence, you should never forget the ever-changing nature of social media sites like Facebook, Twitter and Google+ page. While these sites can be a good marketing platform to create brand awareness and providing potential customers your business' personality, they are also be a great way on creating revenue, Business.com revealed. So, embrace their usefulness and participate in using them every day, as it will show your audience that you exist.
5. Never spend the money in all wrong places
In business, you need to spend money in order to earn money. But the question is where to spend it? When you first open your doors, it is quite understandable that you're tempted to create the perfect, creative, modern and chic space, and people also tend to work better when they like their working environment.
While in the beginning of the business, however, you should try skipping the fancy office for now. Instead, be more practical and begin with a mini fridge over the fully-stocked-hundreds-of-dollars real thing. Also start with simple desks but comfy chairs and celebrate office occasions such as holiday parties in-house with a potluck or cheap catering. And as your company grows, feel free to splurge a little more each year. Always remember: No one gets to start with the fancy office. And when it comes to spending your money, spend it in places more likely to put money directly back into your pocket.
No company is perfect, some have made missteps that hindsight makes harder to fathom. But while failures can be inevitable, why not give the management mantra, "Fail Forward," a new meaning. After all, it's through epic flops that make a business shines the brightest.
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