If one takes a quick look at history, then one quickly realizes that no corporation is ever too big to fail. Therefore, if you are a corporate leader, you need to make sure that you are paying attention every day. Here are some areas that you need to consider to make sure that your corporation does not join the failed list.
Polaroid was once one of the largest camera companies in the world. Ask senior citizens, and they will tell you about waving one of the company’s instant photos in the air waiting for it to develop. The company sunk thousands into researching digital photography. Yet, they failed to bring a successful product to market because they always thought there would be a role for film cameras. This kind of faulty thinking happens in many different businesses, but be cautious that yours is not one of them.
Even releasing one product that the public does not approve of can sink even a major corporation faster than the Titanic. While there are many prime examples, one example is Sharper Image. For over 31 years, the company released obscure products and convinced the public that they must have them. As a result, the company became a household name. Then, they released an air purifier in 2002, and a trusted rating authority gave it a very bad rating. The result is that the corporation ended up fighting numerous lawsuits in court over the original article and with the original developer. After 31 successful years, the corporation could not overcome their financial woes in court and had to declare bankruptcy, serving as a reminder that the biggest corporations can fail.
It was not so many years ago that every kid wanted an Atari to play their video games on at home. The company’s Atari 2600 became the biggest selling game console of its time, and the video game Pong was on every child’s wishlist. Then, the company released the video game E.T. that many in the industry still consider the worst video game ever made. The result is that company officials buried thousands of games that the public refused to buy in a landfill and had to close their doors.
Most companies work very hard at getting the most out of tax deductions, with plenty of resources online existing just to help companies squeeze out that last buck, but some large corporations avoid paying their legal share to disastrous effect. In the end, the government wins, and the corporation ends up failing. Such was the case with Ty Warner who created the Beanie Baby fad. When everyone just had to have one of his stuffed animals, Ty failed to pay his taxes. In the end, he ended up being convicted of tax evasion of $25 million in 2012 because he tried to hide his money in a Swiss bank account.
Use these examples to strengthen your own company’s position. Release good products that your customers want. Make sure to stay current with the times. Even though it is painful, pay your share of taxes. If you’ve made mistakes, all is not lost however. Several major companies who nearly lost it all for the reasons listed managed to bounce back by implementing key changes. Failing doesn’t mean your business is doomed — it just means you have to change your strategy.
If you’re ready for your business to get more customers, get a free business evaluation from us today and we will help your business succeed!