Over the last 18 months there have been a number of businesses fall over – which in and of itself has not been surprising given the recent economic climate. However, one element that serves as a warning for us all is the flow on effect of those failures. Not just in a tangible sense, where suppliers or ‘subbies’ are left out of pocket and can’t survive, but where acquaintance businesses can be tarred with the same brush.
We tend to associate the word “brand” with large multi-national companies such as Apple, Microsoft and BMW, and less so with smaller local businesses. Maybe an equivalent description for a local business is “reputation”. It is less tangible, a product of individual perspective, rather than a wider shared view, and can change rapidly. So, what can you do to make sure you are not tarred with the same brush to ensure you protect your reputation?
Review your customer and supplier list with a non-financial lens. Consider whether there are businesses that have a reputation for trading aggressively, unexplained profitability or other warning signs – do the owners share similar values to you? Review their on-line profile to confirm their social media posts, images, and videos are not offensive or misleading. Is your relationship with an at-risk business a matter of public record?
Regularly review your own online presence to stay aware of what people are saying about your business. Whether it’s praise or criticism, showing that you listen and respond in a constructive way may help prevent people from assuming the worst.
Consider whether you have a disproportionate relationship with a single supplier or customer where if something goes wrong, you could be assumed to be involved or complicit.
When employing new staff, consider where the employees are coming from. Is it a business that has a poor reputation? Is the employee the product of that poor reputation? Or are they a good hire because they left due to that poor reputation.
Beyond your direct business relationships, think broader. For example, if you are sponsoring the local rowing club ask who else is sponsoring it, and who your logo will be sitting beside. Consider what impression being associated with that business will have on your stakeholders.
Finally, have a plan in place for handling issues if they arise. One of the biggest decisions you might face is whether to cut ties with a customer or supplier early, or risk being dragged down with them.
