Last Updated on October 22, 2018 by Jessica Adams
Certain businesses seem almost bulletproof. Apple, Volkswagon, Uber etc. have all taken major hits and still managed to turn a profit… and then some. Indeed, each of these three giants has received negative press in just the last two years, which would smite any other company.
Unfortunately, small businesses, the brick & mortar, and ‘mom & pop shops’ don’t have the same luxury. Get some bad press in the media and your customer base will bounce before you can blink! Sure you could hire a PR guru or an agency but at the end of the day, this industry just wasn’t created equal. For this and many other reasons, it’s important to learn about disasters that could potentially ruin your business. There are some from which there is no coming back, disasters that can crush your small business.
Disasters That Can Crush Your Small Business
The Scandal
As soon as the papers get ahold of some juicy gossip, you’re already fighting a losing battle. In court, you’re innocent until proven guilty but that doesn’t transfer to the court of public opinion. If there is a story about someone telling a racist joke or discrimination of any kind, in the workplace, then you can guarantee most people will assume it’s true. One of the best ways to avoid a scandal is by promoting a safety culture within the workplace. That way, discrimination of any kind isn’t prominent and no one has to feel uncomfortable.
The Scorned Customer
We’ve all heard the saying “hell hath no fury like a woman scorned”. If you change “woman” to “client” or “customer”, you’ll see where I’m going with this. Shoppers that feel as if they have been screwed over will fight back. Some will go so far as to file a lawsuit suit. Or they’ll drag your small businesses brand name through the mud. They might even decide to make it their life’s mission to tell every friend, family member, and media outlet to never do business with you. Keep disputes to a minimum by coming to a compromise as soon as possible. The sooner the better!
The Data Breach
Having a data breach, especially if you’re in the ‘information gathering’ business or ‘taking payments by credit cards’ business, is really bad. It will eliminate any faith that your clients and peers once had in the business. How can they trust a company that doesn’t take its customers’ data seriously? Where is the respect for their privacy that you insist you have? You know, every time they land on your website and your privacy policy pops up in their face? They’ll remember that pop-up after a data breach, and they’ll be laughing at you… that’s the best reaction you can hope for!
The next time they have a choice of making an online credit card purchase with your company or one of your rivals, they’ll choose the latter. Of course, the obvious solution is to fill in the gaps to avoid a leak. To do that, the company will need to pay for specific managed services. Anything else would be too risky. Also, you’d have to make some major changes by creating a data safe atmosphere. This includes but is not limited to, shredding important documents after use and consistently rotating passwords.
The Natural Disaster
Tornadoes and floods are called an ‘Act of God’ by most insurance companies, which means they might not be events in which the damages are covered. For a business, this can quickly spell ‘the end’ because you probably won’t have the resources to get back up and running. And, you’ve got to do it quickly if you want to keep your market share and stay in your customers’ minds. The key is to include a natural disaster clause in your insurance policy so that there aren’t any surprises! And, if you happen to know that a natural disaster is headed your way, be ready! Do whatever it takes to protect your small business from the present danger that is threatening it.
Edited by Jessica Adams
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