Managing your reputation

For the small business owner or for someone still considering setting up a business the question of managing a reputation is probably the furthest away from their mind. It’s surely only big companies that have problems in this area.

The tech world’s derision towards Microsoft’s plan to set up retail stores is an example of how a major company has neglected to manage its reputation. Read here or here. I have yet to see one tech blogger say something kind about this move into the shopping environment.

Of course Apple received a fair amount of criticism when it opened its stores.  Many in the tech industry predicted doom and gloom. Microsoft could be successful as well even with the retail industry being in a nasty slump due to the global recession.

It’s not the success that is my question here. In fact I hope Microsoft makes a success of this venture which could be totally possible. One tends to forget how heavily Microsoft is invested in gaming.

The observation is more about the fun that is being poked at the concept and the way that techie bloggers are laughing at Microsoft. Somewhere along the line Microsoft has not listened to its customers enough and has neglected to manage its reputation.

How did Apple manage to make it’s retail stores so popular and deliver on great profits during these last few months of bad trading times? Apple has a reputation for delivering exciting, functional, beautifully designed cool products.

That is the reputation Apple has built up and they have guarded this religiously. If you look at the way they launch new products you get the idea. Watch the Soho Apple Store opening for the iPhone launch. It says it all. Apple manages its reputation well.

As a new entrepreneur or small business owner, managing your reputation could be something you are not awarding much importance to. After all your sales and keeping the business going during hard times is a lot more important.

However, it would still be a good idea to build the concept of reputation management into your general way of doing business. Consider it an item in your operations manual, which of course is only in your head at this stage.

A quick question whenever you come across a problem in your business should also have a component to it that queries whether what you propose to do is good for your reputation.

As an example imagine a customer who is being difficult and is pushing you to deliver more than what the accepted quotation has noted. How do you handle this?

Do you stick with your quotation because you are in the right? Or do you go that extra mile and overdeliver. In between calculating how much the extra could impact on your bottom line it’s an idea to also tick your options off against your reputation cost.

Which will give you more points? Sure on the one hand you might reduce your profits if you overdeliver. On the other hand, you don’t end up with a customer who might just have some unkind things to say. Even if he is being unreasonable.

Manage your reputation from day one. Make it part of your business strategy. It will be worth it. Sign up to the RSS feed or e-mail newsletter. Your reputation won’t suffer.