When business starts to crumble ...

The feeling of riding the wave of a successful business career is so intoxicating, many wouldn’t image a time may come when things would go the other way round. This usually results in inexperienced entrepreneurs finding themselves in situations they’re not well prepared to face. Many entrepreneurs resort to making unwise decisions that only help them achieve brief relief and result in a worse situation. When you’re in that situation when things are not going as expected, decision making becomes critical. While a failed business is certainly not the end of the world, it is important to prevent the business from hitting the ground and stay afloat.

Here are some ways to react and handle things if you find your business is crumbling.

• Keep your mind clear to enable you process your thoughts clearly.
• Create new opportunities to get your business back on track by making new deals.
• Accept temporary failures. 
• Stay positive and look beyond your current situation. 
• Focus on what drives you.
• Ask for favors from others.
• Think of the people you know that can help you and reach out to them.
• Re-strategize your business plans.
• Don’t keep anyone in the dark by pretending that everything is alright. 
• Be bold and come out clean with everyone.
• Treat your employees like your co-partners, and they would be glad to offer their help and contributions.

Implosion of trust

• The year 2017 witnessed the largest-ever drop in trust across the institutions of government, business, media and NGOs.
• Trust in media fell to an all-time lows, while trust levels in government dropped and is the least trusted institution. The credibility of leaders also is in peril: CEO credibility dropped globally to an all-time low, plummeting in every country, while government leaders remains least credible.
• The mass population distrusts their institutions, compared to the informed public.
• The implications of the global trust crisis are deep and wide-ranging. It began with the Great Recession of 2008, but like the second and third waves of a tsunami, globalization and technological change have further weakened people’s trust in global institutions. The consequence is virulent populism and nationalism as the mass population has taken control away from the elites.
• Current populist movements are fueled by a lack of trust in the system and economic and societal fears, including corruption, immigration, globalization, eroding social values and the pace of innovation.
• Politicians and the government are in real trouble. People don’t think they are the solution. They simply don’t trust them. The majority of people believe blunt, outspoken, spontaneous straight-talkers over rehearsed and diplomatic communicators.
• The cycle of distrust is magnified by the emergence of a media echo chamber that reinforces personal beliefs while shutting out opposing points of view. People favor search engines and more likely to ignore information that supports a position they do not believe in.
• People now view media as part of the elite. The lack of trust in media has also given rise to the fake news phenomenon and politicians speaking directly to the masses. Media outlets must take a more local and social approach.
• The dispersion of authority is evident. An ordinary person is now just as credible a source of information about a company as is a technical or academic expert, and far more credible than a CEO and government official.
• Business is viewed as the only one that can make a difference. Many believe a company can take actions to both increase profits and improve economic and social conditions in the community where it operates. Moreover, among those who are uncertain about whether the system is working for them, it is business that they trust most.
• Yet business finds itself on the brink of distrust of the public seeing it stoking their fears. A majority of population  worries about losing their jobs due to the impacts of globalization, lack of training or skills, immigrants who work for less, jobs moving to cheaper markets and automation.
• Business is the last retaining wall for trust. Its leaders must step up on the issues that matter for society. It has done a masterful job of illustrating the benefits of innovation but has done little to discuss the impact those advances will have on people’s jobs. Business must also focus on paying employees fairly, while providing better benefits and job training.
• Trust in business & NGOs dropped. Employees are trusted more than CEOs. In many countries people have lost faith in the system. Trust in traditional media and social media dropped. Only online media received the biggest bump in trust.

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Now a days, we don’t trust anything, or anyone. Mistrust is high, morale is low and trust is in crisis.Trust has been so much corroded that we now trust leaked information much more than traditional news sources and algorithms over human editors. Trust in institutions has evaporated to such an extent that falsehood can be misconstrued as fact, strength as intelligence, and self-interest as social compact. To rebuild trust and restore faith in the system institutions must move beyond their traditional roles of business as actor and innovator; governments as referee and regulator; media as watchdog; and NGOs as social conscience. Companies can build trust by treating employees well, offer high-quality products and services and listening to their customers. With employees more credible than a CEO, companies should work harder to get their customers and their expert employees to speak and advocate for them as much as possible. Companies have to show that they are not just listening but are also learning and responding to any feedback that they are given. The winners will be those that are more open, responsive and leverage the collective voices of both their employees and their customers.

Why one should not do business with friends or relatives?

Economic recessions creates accidental entrepreneurs and self employment due to large scale job losses. Technological advancements and the changing economic landscape makes it easier for friends and relatives (including family members) to launch business ventures with minimal experience and financial resources. Just because people have the resources to launch a business does not mean that they should. Even with innovation and increased accessibility, the worlds of commerce and industry remain extremely difficult to conquer. Multiple factors can undermine a fledgling business and ruin relationships between friends and relatives.

1. Friendship does not translate into business compatibility.
   It is tempting to believe that your existing relationship will easily translate into a successful commercial union. This is rarely the case even as people with similar values and philosophies may not share the same approach to completing various business tasks. This creates conflicts when establishing a business model or cultivating a company culture, which in turn has the potential to undermine even the most durable of relationships.
2. Friends and relatives rarely plan for worst case scenarios.
   Between friends and relatives who have unsuccessfully attempted to launch a business, one of the key issues is a lack of communication. Friends and relatives rarely consider all potential worst-case scenarios in detail before making a fixed commitment, so that they can develop viable contingency plans and prepare their friendship / relationship in the event of failure.
3. It can be difficult to create clearly defined business roles.
   The majority of friendships / relationships are formed organically with no predetermined roles or structural hierarchies. In business, it always requires one partner to take an authoritative leading role, which can create imbalance in an existing friendship / relationship and ultimately cause unrest. There may be a tendency among friends / relatives to avoid this entirely, but this exposes the business to a critical lack of leadership.
4. Your business goals may differ from those of your partner.
   Your motivation for launching a business may differ to that of your friend or relative. While you may aim to realize the long-term goal of launching a business, your partner may want to earn some additional money to supplement their existing income. This is entirely opposed to the foundation of commercial partnerships, which should be formed from a common goal and fixed business aspirations. Such a gap in expectations can be devastating which can trigger arguments, undermine business growth and compromise friendships.
5. The price of failure is far higher
   An estimated 50% of all small businesses fail during their first 24 months. Such failure comes at a considerable cost to small-business owners, although this is restricted to financial losses. For those who partner with a friend or relative, the failure of a business venture can create a strain that even established relationships are unable to cope with. This means that the cost of failure is even higher, as it can compromise both your personal and professional lives.
6. Financial arrangements and friendships make for uneasy bed fellows
   In business, each partner may be required to invest some of their personal capital, which in turn creates a financial arrangement that binds two friends / relatives in a legal contract. A single act of negligence or irresponsible behavior by one can impact heavily on their partner. If you consider the financial cost of such personal injury that arise as a result of carelessness, it is easy to see why friends should avoid funding a joint business venture.
7. You may struggle to plan holiday’s and breaks away.
   Whenever you start an independent business with friends and relatives, you are placing an incredible strain on both your personal and professional time. Booking holidays or taking breaks can be particularly difficult, that expose business to a lack of leadership at a critical juncture. Unless you have a trusted employee who can hold the fort and lead strategically in your absence, you may need to stagger your holidays and take separate breaks.
8. You will place a huge strain on your finances.
   There may be many reasons for you to choose to launch a business venture with a partner, benefiting from an influx of capital is the most prominent. The cost of establishing a business can be considerable, so it is natural to share this financial burden with a trusted partner who can also add experience, strength and leadership. Starting a business with friends and relatives is an entirely different entity, as you may be drawing capital from a more restricted source and placing a greater strain on your finances.
9. Friends and relatives business ventures usually lack expertise.
   Aside from the ability to provide an initial investment, a carefully selected, independent business partner can also bring considerable expertise and experience to your venture. You may need to compromise on this when partnering with a friend or relative. Since your share of equity is limited, it is important to retain the incentive to succeed. By sacrificing invaluable business knowledge, you could enter the marketplace without the necessary tools to succeed.
10. Emotions can override good business sense.
    Familiar business partners who are emotionally invested in one another, as periods of hardship can damage the relationship and cause both parties to act irrationally. It is therefore easy for emotions to override sound business sense, and this can quickly sound the death knell for any commercial venture.
11. It can be hard to appraise your partner’s performance.
    Honesty should be the bedrock for any successful and meaningful friendship  but it can be hard to administer a frank and withering appraisal of those closest to you. This can cause a significant issue when friends and relatives partner in business. It often leaves faults unaddressed and causes operational issues to continue longer than they should. While third party assessments can be sourced and paid for, the potential impact of negative criticism can still damage relationships.
12. Relationship breakdowns can divide families and friendship groups.
    The fall-out between two family members or close friends can trigger huge divides, and cause even the tightest-knit of groups to splinter and form rival factions. This can lead to an ongoing and acrimonious dispute that involves multiple parties, while leaving a family or friendship group in tatters.
13. Relationships can suffer even when the business venture succeeds.
    There is a strong possibility that relationships can also crumble if a venture proves to be successful. Relentless pursuit of success can take its toll in a competitive market, and attainment can also change each individual’s outlook and create distance within a relationship.
14. Changing circumstances can upset the equilibrium of any partnership.
    Over time, the market can change significantly and to meet new challenges partners must be flexible with suitable response. This can create significant inequity within a relationship especially if one partner is forced to carry greater responsibility without reward. If a business requires additional investment but one member of the partnership has fallen on hard times the other will need to fulfill this financial commitment without gaining any additional equity causing considerable resentment and create a huge divide between once close allies.
15. Business may not always be a priority.
    Changing personal circumstances, like marriage or parenthood, can alter our priorities and force us to spread our time more thinly making it harder to prioritize a business venture that has already been established with a friend or relative. Even if partners have entered into an prior agreement with the same outlook and goals, these can quickly change in the face or rearranged priorities. This situation can also occur gradually over time, leaving businesses exposed and left to decline.

Don't do business with friends rather do friendship with businessmen.

More than anything, envy and jealousy among people is the primary pulling down factor in any relationship. More so in India lacking resources, education and ethics. Hypocrisy i.e. inconsistency between thinking, speaking and actions also contributes to problems & failures.

Social media greatly impacts society

Social media websites are some of the most popular haunts on the Internet. They have revolutionized the way people communicate and socialize on the web. Social media has tremendous impact on culture, business, politics, socialization with some negative effects such as cyber bullying and privacy.

• Social websites have played an important role in many elections in many countries.
• Companies are using social media to advertise their products, to enhance brand image and popularity which costs nothing.
• Social networks offer the opportunity for people to re-connect with their old friends and acquaintances, make new friends, trade ideas, share content and pictures etc. 
• Users can stay abreast of the latest global and local developments, and participate in campaigns and activities of their choice. 
• Professionals use social media to enhance their career and business prospects. 
• Students can collaborate with their peers to improve their academic proficiency and communication skills.
• Social networks is the choice for the bloggers, article writers and content creators.
• Social networking sites is to unite people for the achievement of some specific objective to bring the positive change in society.
• There are a some downsides too to social networking. 
• Many introverts and socially reclusive users place too much emphasis on virtual interaction, and ignore the real world outside. 
• If you are not careful, unscrupulous people can target you for cyber bullying and harassment on social sites. School children, young girls, and women can fall prey to online attacks which can create tension and distress. 
• Social media or network could lead to addiction. Spending countless hours on the social sites can divert the focus and attention from a particular task. It lowers the motivational level of the people, especially of the teenagers and students. 
• Many companies have blocked social networks on their office internet as addicted employees can distract themselves on such sites, instead of focusing on work. 
• Kids can be greatly affected by these social networking sites. Sometimes people share photos on social media that contains violence and sex, which can damage the behavior of kids and teenagers. 
• What you post on the Net can come back to haunt you. 
• Revealing personal information on social sites can make users vulnerable to crimes like identity theft, stalking, etc. 
• Many companies perform a background check on the internet before hiring an employee. If a prospective employee has posted something embarrassing on social media, it can drastically affect their chances of getting the job. 
• Our loved ones and friends may get to know if we post something undesirable on social networks.
• Even with the tight security settings your personal information may leak on the social sites. Downloading your videos or pictures and copying your status is an easy task.
• Social media has its above mentioned advantages and drawbacks. 
• Anther disadvantage of social media is the low control of the integrity of posted information.
• It is up to each user to use social sites wisely to enhance their professional and social life, and exercise caution to ensure they do not fall victim to online dangers.

Not disputing anything, it leans heavily in favor of the positives. Social media is greatly implicated in increased depression, feelings of isolation and loneliness, spreading of false information, creation of "echo chambers", break down of inter-personal communication skills, break down of intimate relationships and cause of broken friendships/ relationships. Social media  is a prime catalyst of social decay with unquantifiable negative impact.