Learn from the mistakes of bigger, badder companies

When we say, ‘badder’ we mean that literally.

Some of the biggest companies have made serious mistakes that have caused their businesses massive issues, resulting most recently in the future of several corporations we’re going to discuss in doubt.

Mistakes in your business can lead to issues with brand reputation, declines in profit, legal battles and ultimately the destruction of a company. By looking at the mistakes bigger businesses have made before you, you can save your money and your company. But what type of problems are we talking about here? Well, let’s start with business security and Equifax.

Keep your company secure

Before we get into what Equifax did and why let’s first make sure we understand why security for a business like yours is important. Essentially, when you open a business, you are always going to have personal data from customers. This could be credit card information, addresses, names, and passwords. All of this information is sensitive, and in the wrong hands, it can be destructive.

If someone hacks into your business, they could steal this information and use it themselves or perhaps even sell it on the black market. That’s what’s worth remembering when you think about the security of your business. You’re not just protecting yourself, you’re protecting your customers, and you need to because without supporting your customers, there’s a good chance that things are going to get rather murky all too quickly.

In fact, you will find that as soon as customers find out that you were responsible, they will stop buying from your business. Not only that, they will probably tell other people they know to stop using your company as well. It gets a tad problematic when virtually everyone starts to look at your business as a liability. That’s exactly what’s happening with Equifax right now.

Equifax is a credit score company, and they were responsible for massive amounts of data of people in the USA including social security numbers. Over 140 million people are now at risk because this year Equifax was hit with a hack, leaving everyone who trusted them with their details vulnerable. With a social security number, you can use other people’s credit cards and rake up thousands in debt that they will be left accountable for so it’s a serious issue.

The fact is this could and should have been avoided if Equifax had taken security in their business a lot more seriously. With services from On Call and other companies it’s easy for businesses to get the security, they need through full IT support services, so there’s really no excuse. As such, the first lesson you can learn from what happened with Equifax is to make sure that you are indeed investing in the best security software.

The other lesson? Well, you should probably do what you can to solve the problem as soon as you can if you are hacked. It’s been widely reported that Equifax waited too long to try and approach the issue and a number of the services that they used to try and support their customers failed. That’s a good way to lose even more support.

Scandals in business

The offences that former co-founder of Miramax Harvey Weinstein has been accused of has recently been flooding media outlets. You might wonder what on earth this has to do with your business and the business world in general. Well, first, it’s important to realize that as more details are revealed, it’s starting to become clear that this wasn’t just one man.

This was a business and potentially an entire history who were either completely aware of the issue and did nothing or had high powered individuals who were formed of the issue and did nothing. Either way, it’s difficult to spin this in a positive light, though Hollywood is doing everything it can to distance itself from the disgraced film producer.

What will happen to the business? At the minute, many people are wondering whether Miramax will be able to continue when it’s embedded in such a story. It’s quite possible that the company will be sold or taken over by one of the members of the board with the highest percentage of shares in the company. Either way, Miramax is looking at a long road to the recovery of their brand Reputation, and Weinstein is finished for good.

Again, there are a couple lessons to learn. First, no business is above the rules and regulations that are in place for a company. As a business owner, you have a responsibility to run a business environment that is fair, friendly and most important of all, safe.

It’s emerging from the reports around Weinstein that a lot of these women just didn’t feel safe and free from the danger of sexual harassment. That is a problem that you can not let plague your business because you will be in court so fast you won’t even have time to take your cheque-book out your pocket. And that’s a shame because you’ll definitely need it.

The other lesson is to make sure that you are honest and open with the public because everything comes out eventually. By making your business model completely transparent, you will be giving your customers complete access, and they’ll thank you for it. In fact, your business will gain a lot of positive publicity just by making sure that you are always open and honest.

There are just two major examples of how to incredibly powerful businesses have dropped the ball and now will pay for it. There are many, many more cases where businesses have either damaged the reputation, been embroiled in legal scandals or simply ended up in bed with the wrong people.

Just last week, Marvel, the family entertainment brand had to explain why they had formed a partnership for promotion with a global defence company. This just shows how important it is that you do indeed take every business decision you encounter seriously because ultimately it could lead to your downfall.

Free newsletter signup
I agree to have my personal information transfered to MailChimp ( more information )
Never miss another Bankless Times news story as we send you hand-picked articles every morning
We hate spam. Your email address will not be sold or shared with anyone else. You will only receive our daily newsletter. You can unsubscribe at any time.