Your reputation is the general opinion people have about your business. A good reputation is a valuable asset.
Your reputation is based on your behaviour, performance, actions, branding, customer reviews, and so on. You can have a good reputation on a local level or a national, or even global, scale.
Why a good reputation matters
A good reputation makes existing clients trust you, and can encourage loyalty and repeat purchases. It can also attract new customers or even investors. It also gives you a competitive edge, and can even let you charge higher prices for your products and services than your competitors, especially if they’re struggling with a less favorable image.
This means that having a good reputation is an important factor for the liquidity and revenue of your business. In other words, it can help you earn enough to cover your liabilities, as well as giving you a profit to either take home or invest in the business.
When it comes to accounting, reputation is referred to as goodwill. It’s an intangible asset that still adds a lot of value to your company, and can potentially increase the company’s overall value if you’re ever looking to sell.
How to improve your image
First of all, unhappy clients are bad news. If you have bad reviews on Google or Trustpilot, this can severely damage your reputation. Cultivating strong relationships with customers—also called CRM—is key.
See also: How to build great relationships with customers
Here are some other steps you can take to establish a good image:
- Responding quickly to customer inquiries: Here are 5 customer service tips for small businesses
- Being flexible about your returns and warranties policy, and having a solution-oriented approach
- Paying invoices on time to keep suppliers happy and uphold your image as a professional business partner
- Prioritising employee welfare, by for example offering flexible hours, mentorship programmes, teambuilding activities, or gym memberships
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