Ruining a business is not easy especially if it’s a brand. So the best and only quickest way to ruin a business is, somehow make the business hurt itself. Moreover, if you are an outsider, then there is nothing much you can do. However, if you work in that company then there are few legal ways you can ruin it.
- The average turnover for a business in the USA is 15% annually
- Reducing the turnover for a business is one of the quickest ways you can ruin a business
- Micromanaging a business can resulting cultural shifts and damage the business
- Internal ruckus of gossip can create hostile environment and damage the workplace of a business
- Hiring wrong professional is another legal way to ruin a business
5 Steps To Ruin A Business Legally
Reduce The Turnover
Turnover is very important for a business and it plays a significant role in the development of a business. Statistics showed; the average turnover for a business in the USA is 15% annually. So, if there is any way you can reduce the turnover of a business then you might have a chance to ruin that business. One effective way to reduce the turnover is, to increase the associated costs to replace a single position. For a business, usually, it takes 15-30%+ of a position’s annual salary to replace the person. Depending on the industry and position, it might take 200%+ of annual salary equivalent to find a replacement.
So, it’s the lack of talent or inexperienced professionals that can easily ruin a business. The lack of talent creates immunes pressure toward the management and it leads to staff-level management taking on far more responsibilities, burdens, and pressures. If the situation is not resolved quickly then it will lead to inefficiencies, frustrations, and finally burnout of each subsequent level of management. This type of effect will cause huge changes in the organizational structure.
Oversight creates top-down pressure among the employees of a company. Sometimes, micromanaging a team can create pressure and the staff management feel sandwiched from both sides. Usually, the frontline staff doesn’t feel any pressure in their work. So when oversight occurs over the frontline, a lot of fear and distrust came into their mind. So they feel a duty to protect their team. Sometimes, micromanaging can happen to the management. When it occurs, bad things can happen for the business. So when business management is micromanaged, cultural shifts can occur overnight. In worst-case scenarios, the leaders from the top management might be forced to resign despite their honest efforts towards the company. So, it’s clear that micromanaging is damaging for a business.
Internal Ruckus Of Gossip
This is a great way to make the workplace of a business a hostile environment and creates a focus on social dynamics. A ruckus of Gossip will keep the employees busy and they won’t be able to achieve the business goals. Usually, an internal ruckus of gossip happens because of employee disengagement; systems, and various situations like repetitively fostered promotion, the perpetuation of the wrong things, etc. The presence of juicy gossip will kill the employee’s work time and ultimately hamper the efficiency of the company. Moreover, it might completely derail the company culture and increase the damage that can cause less turnover or worse.
Hiring The Wrong Person
This is an excellent way to ruin a business legally. Hiring the wrong person doesn’t mean choosing a bad or inexperienced employee. It means a wrong person at the wrong time, at the wrong place, for the wrong team. Nowadays, businesses become more careful while hiring a new employee for the company. One of the main reasons companies nowadays take strict job interviews is to find the right employee for the right post. In the near future, hiring the right person will be the main concern of a business. This is because, when a candidate is quickly hired to fill a post, he might turn out to be a nightmare for the company as he gets loose after the probationary period.
Inheriting problems at the employee level can cause a big problem for a business and ultimately ruin the business. When a manager inherits a problem, he looks for a short/instance solution to solve that problem and then be gone. This type of situation is very harmful to a business because the business doesn’t have a long-term solution and the problem might occur in the future and cause big trouble. This type of situation is very common in businesses and you may see a staff or mid-level manager resigns and then the management tasks the new manager to fix some issue that isn’t fully disclosed by the previous manager.
FAQs About How To Ruin A Business Legally
How Social Media Can Ruin A Business?
Social media has a great impact on the development of a business but it also has drawbacks. There are many examples where social media is the main reason for the led-down of several businesses. If a business misuses social media then it can not only waste a ton of money but also destroy the reputation of the company.
What Are The Results Of A Bad Company Image?
A bad reputation or bad company image has a direct impact on the sales of a business. A bad reputation can easily damage the long-term success/reputation of a company and they might lose their loyal customers. Bad company image also has an impact on product accessibility and the company might lose potential customers.
Why Does A Business Have A Negative Image?
There are many reasons; a business can have a negative image. Some key reasons are:
1. Competitive pressures
2. Individual greed
3. Various cultural contexts
4. Negative marketing from the competitor
5. Generate ethical issues
6. Unethical behaving from the employees
7. Poor marketing decision
How Do You Get A Bad Reputation?
Businesses mainly get a bad reputation when they treat their customers inappropriately. Sometimes, people spread gossip or negative statements about a business and it creates a bad image for the company. A bad reputation can badly damage a company and it might take a lot of time to repair the damage.
What Are The Most Negative Brand Attributes?
Below are some of the most negative brand attributes:
1. Poor Customer Service
2. Unethical Behavior
3. Poor Quality
4. Disgruntled Employee
5. Unclear Expectations
6. Negative Feedback
How Do You Ruin A Company’s Reputation?
Ruining a company’s good reputation can easily ruin the company. There are many ways you can ruin the reputation of a company. They are:
1. Missing project deadlines
2. Failure to honor time commitments
3. Negative marketing on social media
4. By leaking important company data
5. Spreading false gossip
6. Lying to customers
Last Updated on October 8, 2022 by Magalie D.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.