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Business Unplugged™
This blog features Carol Roth's tough love on business and entrepreneurship, as well as insights from Carol's community of contributors.

Bad Business Practices 2021

Written By: Catherine Morgan | Comments Off on Bad Business Practices 2021

This year, in my opinion, was only slightly better than 2020. At least in March 2020 through the end of the year we were all experiencing the same thing and banding together during the crisis.

Oh wait, we weren’t.

So, here we are at the end of 2021 and the stupid stuff just keeps continuing. Here are a two examples.

Mass layoff on Zoom

You may have seen this. It’s a PR nightmare. Here’s what happened, according to this article by LinkedIn.

“Digital mortgage startup Better.com invited 900 employees to a short Zoom call last week — to inform them they were all being laid off just before the holidays. CEO Vishal Garg announced the layoffs, citing market efficiency, performance and productivity, and also accused the staff of “stealing” from their colleagues and customers by being unproductive, Fortune reports. SoftBank-backed Better.com has a valuation of around $7 billion and last week received $750 million as part of a deal to go public through a SPAC.”

Let’s start using the hashtag #worstpractice for obvious train wrecks like this because it’s the polar opposite of a best practice.

I was anxiously awaiting the thud of the other shoe dropping, as it did previously when an oblivious management team did the same thing last year. Here’s the fallout according to the New York Post in “Better.com execs resign from company after CEO’s controversial mass layoffs over Zoom”:

“Three of Better.com’s top executives have reportedly resigned from the company after the online mortgage lender was hit by a wave of backlash over a leaked Zoom call in which the CEO callously laid off some 900 employees. The company’s head of marketing Melanie Hahn, head of public relations Tanya Hayre Gillogley and vice president of communications Patrick Lenihan have all resigned, Insider reported Tuesday. The high-level departures are directly related to CEO Vishal Garg’s handling of recent layoffs at the company and his reportedly divisive management style, Insider reported.”

Who could have seen that coming?

Oh wait, I did.

It’s been tough and we’re doubling your fees

If you know a new accountant in the Chicago area for small businesses, I am in the market. I received this today and I am fuming:

“To Our Valued Clients: As we approach the New Year, I hope you and your family are safe and healthy. As I am sure you have experienced, the last two years have brought many challenges. The accounting industry has been required to interpret and implement numerous new tax laws and experienced significant increases in the cost of labor and technology. Effective January 2022, the new minimum fee for business tax returns will be $1,000. We don’t make these changes lightly, but the current economic reality forces us to make changes to ensure that our firm maintains the appropriate level of service. While we hope to continue as your provider if you decide to discontinue services with our firm, we will work with you to ensure a smooth transition to another provider.”

This is me making a rude gesture of playing the world’s smallest violin.

My returns are as basic as they come. This will double what I have been paying for years. I think I’ve been using them for six years.

To be clear, this isn’t how you treat your long-term clients. Sure, the rules have probably changed, but you learn the new rules and then apply them for all of your clients. This is what you do for a living. It’s part of the cost of doing business and should have been factored in.

I am so done. #worstpractice

Article written by
Catherine Morgan is the founder of Point A to Point B Transitions Inc., a virtual provider of coaching services to individuals who are in business or career transition. She specializes in helping entrepreneurs transition to corporate jobs they love. Catherine is the author of the eBook Re-Launch You: Discovering Your Point B and Embracing Possibility. An experienced independent consultant who was employed by three of the former Big Five consulting firms, Catherine speaks frequently on topics related to career transition, small business, productivity, and mental health. She doesn’t take herself seriously, but takes her subject matter very seriously.