Reputation or financial performance?

I’ve heard it said that there is a MORI poll, dating back to the 1990’s which claims that when investors were asked what they looked for the most in a business to buy, they felt that it’s reputation was marginally more important than its financial performance.

Now I’m no accountant, but that seems to make sense to me. Finances can be turned around with savvy management. Reputation however, is a different matter. As (possibly Warren Buffett) says, “it takes a lifetime to build a reputation, but a moment to destroy it.”

If you have a view on this, do please link up to the poll on Linked In and vote.

I suppose being a PR specialist, it will come as no surprise to you that I am firmly on the side of reputation. I am really full-on about the importance of nurturing reputation, and clearly, so is the wonderful Evan Davis with his BBC series on Business Nightmares. Watching again how big brands have mismanaged their good names was astonishing, and is well worth another watch if you missed it first time.

So my question to you is this. Are you taking steps to protect your business’ reputation?

Here are FIVE top tips to do just that:

• Create a social media strategy document. You can’t stop your team using social media, but you can establish expectations and standards
• Train your staff (who let’s face it, should be your brand’s most ardent ambassadors)
• Develop relationships with your publics. Not just your customers, but everyone who ‘touches’ your business
• Keep communicating the good things that are happening.
• Have a plan on what to do if things go wrong. Fingers crossed of course that they won’t; but better to err on the safe side. In these days of Twitter and rolling news, stories can travel very VERY fast. Be prepared.