Why tech companies go broke

The tech industry in 2017

There are several reasons why a technology company like Nokia went broke or “bust” like the Americans like to call it!!

These are some of the reasons you need to pay attention to if you are a director of a technology company, a shareholder or an owner. Or an employee!! (if you are happy with your job and want to keep it:) )

  1. At lease keep up to date with the trend.

Nokia failed because they saw a trend but did not ride the was, they saw it coming, and the directors ignored smart people like Steve Jobs.

Always always keep an eye on trending companies. You can see below how the trend has been moving up in google trends for the past 5 years or so… its so easy to keep in the loop of what customers are looking for, their need, their desires, which will make your company a ton of money in any case.

2. Hire the best people

What is a company made of? Its not made of bricks or computers of desks, its made of people. People are the no1 asset of the company together with the customers. No 2 are shareholders. Jack Ma always states that no1 is the customer, no1 is the employee and no3 is the shareholder because the latter will always tell you goodbye when things are not running smoothly in times of recession for example. Customers are loyal if you have a good product. The same applies to employees. If the company treats them fairly, and they are happy, proud and satisfied, they will show an immense amount of loyalty in tough times. Guaranteed.

 

3. Capital

Third but not least, keep a great part of the profits as reserve/investment. Investment means, invest most of the profits back into the company because only that way you can grow the firm at a fast rate. Giving the majority of your profits to shareholders will not help you build a solid business. Invest in research and innovation, new technology, machinery to make the production more efficient, solar energy to save money on bills and invest in your employees by giving them the training they need and some bonuses to boost production. Yes, a happy employee will be so much more productive.

I hope you enjoyed reading this post. Stay tuned because we have a lot more to come soon. Share the love if you enjoy reading!!