Develop a Business Reputation
Strong Business Ethics Can Build Word of Mouth Referrals
"Any publicity is good publicity" doesn't work as well for the small business owner. A reputation for strong ethics and solid business values will get far more clients.
With the tinier marketing budget of a small business or home business, entrepreneurs must establish a strong business reputation in order to generate the word of mouth referrals which are often their lifeblood. A solid reputation of following through with promises, and delivering good or services as agreed upon, will increase the frequency of recommendations.
Develop Personal Relationships
Consumers are motivated by price, convenience, and confidence.
- Price. In an age of big-box stores and large consulting firms it is nearly impossible to compete on price. Wal-Mart demonstrates that the economy of scale is necessary to undersell the competition, and the same principle holds true for service professions such as plumbers and business plan writers.
- Convenience is a matter of location, which is also an asset because it can create less expensive, more effective word-of-mouth traffic to a location. Because convenience is sought after, not everyone can have a convenient location.
- Confidence is the cornerstone of any successful startup business. Although large ad campaigns can create a sense of confidence, for the solo entrepreneur personal relationships are more effective.
Good eye contact and a firm handshake makes a small businessman more memorable. Clients that walk away satisfied, or preferably impressed, will tell others of that experience, which is exactly what any business owner wants.
Attend Business Networking Events
Many business owners generally understand the need to develop a positive and strong business reputation, and they gather at business networking events such as business mixers and business card exchanges to build their own reputations. Strive to attend events like these with some regularity, keeping in mind effective networking techniques and the goal of leaving a positive impression. Other entrepreneurs can become an extension of the business' sales force, recommending non-competing services to their own clients.
Be Generous to Other Businesses
This philosophy is summed up by Business Networkers International in its motto, "givers gain." BNI's success is based upon the idea of social equity, that people wish to give (be it items, money, references, or whatnot) to people that have given to them. Business owners that do so become more memorable, and get spoken of to friends and associates more frequently. This reputation will build momentum, and word of mouth referrals.
Volunteer in the Community
Building a positive reputation can be as simple as putting in some time. Volunteer activities can provide fodder for a press release, strengthen relationships, and provide exposure that a small business owner cannot easily afford. Some good activities to consider include:
- Adopting a road to keep litter-free
- Building homes for the disadvantaged
- Becoming a mentor to a child
- Writing articles for the newsletter or ezine of a non-profit agency
Volunteer activities can only be maintained by those with a sincere interest, so it's important not to overcommit or select volunteer jobs that aren't personally rewarding.
Word of Mouth: A Business Owner's Strongest Asset
A reputation can be built over time and destroyed in an instant. Any business owner should take care to preserve his good name and reputation. That reputation, if carefully tended, can be a wellspring of word of mouth referrals for the business. Scott Allen, in his series on developing a reputation for consultants, provides a number of helpful suggestions that could easily be applied to other small business reputations as well. Allen notes that strong ethics and credibility are critical to a good reputation, and discusses strategy for greater visibility to generate word of mouth referrals.
