Why Are Shopify Shares Down

Bad management

Bad management

A lot of companies get themselves in trouble by focusing on profits instead of customers.

They try to be all things to everyone –– products, services and more products. This over-extended brand tries to attract one type of customer then loses them when they don’t need or want what it offers.

Customer service drops as the company grows and attempts to cut costs. People go back to using traditional brands because they can trust who makes their product and that information is still on the label.

By having too many people trying to work for you, you end up with less time to do your job correctly. Customers notice lower quality and fewer benefits from your business and they start looking elsewhere for help.

Your sales team may have grown along with the company but this doesn’t mean they should get paid equally. Offering equal pay usually causes issues and creates competition between teams.

Companies spend a lot of money making new hires while letting other teams fall behind. It’s hard to keep improving if you’re not being challenged.

No vision

No vision

There’s a reason why Amazon has been so successful. It was only able to focus on its original mission of selling books online when it had a small team and limited resources.

As it grew, Amazon realized that in order to thrive, it needed to expand into other markets and services. This required people power – involving more employees as Amazon expanded.

Visionary leaders understand that in order for an organization to grow, there needs to be room for new ideas and concepts. They also recognize that any growth comes with its own set of challenges and problems.

When you have little or no space for growth, your development will be stunted. This is why firms like Google, whose motto is “do not change,” and why they experience massive attrition rates among their staff.

According to Harvard Business School professor Benjamin Mingeon, one key difference between high-growth companies and low-growth companies is autonomy. High-growth companies give their employees greater autonomy which leads to higher performance.

At its root, the issue is control. People feel they lack control over their work and try to gain it by gaining self-knowledge. When self-management systems are implemented at big organizations, outcomes improve.

Uncertainty about the future

Uncertainty about the future

One of the biggest reasons why people do not buy shares is because they are unsure about the company’s future. Even if you have confidence in the management team, there is always uncertainty when it comes to investing. You want to make sure that the company is healthy and has a long history of success.

When companies go out of business or reduce their operations, people lose jobs and income. This can cause stress on the economy, which in turn affects investors.

If a company is doing well, everyone with an investment will be seeking their own shares. This increases competition for available stock and raises prices. People who already hold shares will try to improve their buying position (by either going to auctions or purchasing trading tickets), while others will wait until someone sells theirs.

All of these factors affect how quickly someone else could sell his share and need help from the market place. Someone might not be able to afford to purchase your share at the current price level.

Issues with Facebook’s advertising platform

Issues with Facebook’s advertising platform

Over the past few months, sales of certain products on our website have dropped by as much as 25%. We haven’t noticed any decrease in traffic to your store from social media. But what we have seen is an increase in visits to your page that result in direct actions — often deletions or amendments to account information.

We suspect this has something to do with Facebook changing their advertising platform earlier this year. Subconsciously maybe you are watching less television or having fewer conversations in public places. You may be doing more research into things before putting money down for them.

It’s not just Facebook running into trouble keeping people logged in. Google recently said that around one million accounts linked to Gmail were compromised between 2013 and 2015. It’s thought that hackers took advantage of flaws in Google+ to infiltrate users’ accounts.

By incorporating login details into websites and apps, it leaves those companies open to risk.

Issues with eBay’s PayPal payment service

Issues with eBay’s PayPal payment service

This has been an issue for several months, but it became more apparent to people in recent weeks.

Some users have reported problems with signing up for new accounts, trying to create an account or logging into their existing PayPal accounts. Others have complained about getting error messages when they try to use their accounts.

PayPal has issued a statement saying that its team is working consistently to resolve these issues. At this time, we have no evidence that any of PayPal’s 80,000-plus independent developer partners were targeted by anyone attempting to exploit the API. We continue to work directly with them to ensure all security measures are in place, and if needed, make recommendations to improve those safeguards.

Leadership is out

Leadership is out

When leadership is taken out of the equation, that’s when problems arise. I believe that if you take away the leader, group will still work, but it might take longer to accomplish tasks.

When there is no one leading, everything starts coming up short. No one takes responsibility for things. There are always people saying “it wasn’t my job to do something” or “I was not aware of what was going on�”.

It becomes everyone’s job including the person who started the task. Sometimes this creates a whole new set of responsibilities where before there were only ones.

A poor choice of investors and board members

The other day I was sharing on Twitter about how amazing my shopping experience had been at Things from India, when one of my followers commented that they didn’t believe in companies if their owners were just trying to make a few bucks before moving onto another company.

It made me wonder what would happen if we changed the way we invested our money and teamed up with different companies?

More often than not, people choose who they invest with and trust, only investing through firms or individuals they know or trust. But it is your responsibility to do your research and find reputable partners.

Also, you should feel comfortable asking questions and being heard, especially during the early stages of investment. Oftentimes investors will ask questions to which others may not have an answer.

Investors work hard educating themselves about new opportunities and can help others realize the benefits of doing so.

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