How social networking can kill a business.

My co-editor at the Quarterly, Frank Marafiote, also publishes Coaching News and Events, a marketing blog for executive, career, and life coaches. Yesterday he published a comment about the damaged business reputations that can result from misuse of social networking tools. For those of us in the political realm, we know full well that our “enemies” will find ways to inflict harm whenever and wherever they can. We’re used to it, expect it, and actively deal with it.

Not so with smaller businesses and professional practices. They tend to be less aware of the angry voices that might use social networking as a way to ruin their reputations and businesses.

Here’s Frank’s comment, a reminder to smaller companies to be alert for negative comments and some common sense ideas on how to deal with it.

How Social Networking Can Kill a Business.

Most of us take for granted the power of social networking to expand our contacts and gently promote our businesses.  We need to remember, however, that there is also a downside to this “empowerment.” The same tools that can be used in a positive way can also be used to damage our reputations and destroy our businesses.

The comment below about a restaurant was posted to a widely read forum in the community where I live. Most people are guessing that a disgruntled employee made the comment. Nevertheless, reading it certainly gives me some reservations (pun intended) about wanting to eat there.

The same types of things certainly were said by unhappy customers or employees years ago, but the number of people who heard it was very limited. Now, in almost an instant, the same comments have a worldwide audience. Because this restaurant operates in a tourist area, visitors doing informational searches about where to eat will very likely run into this “review.”

So what does this mean for coaching businesses and other reputation-based enterprises like ours?

First, we need to stay alert to what is being written about us. Just as you might check your credit report on a regular basis, you need to do a “reputation report” on your name and your business. You can purchase services that will monitor your business name and alert you whenever it is mentioned on the Web. You should also do your own frequent searches using the major search engines. By “frequent,” I mean at least twice a month.

Second, be proactive. That means staying in touch with your market and providing positive and helpful information via your blogs, press releases, Web forums, trade and business Web sites, etc. Stinging negative comments are less credible when they are read in the context of a positive news environment.

Third, react. In the case of this restaurant “review,” there’s a chance that by complaining to the webmaster the comment might be removed. If that is not possible, get third party endorsements — and your own — on the site as soon as possible. Don’t let the mud hang there on the wall with no counter-response. Otherwise, readers will assume it is true.

So here’s how one person damaged the reputation of a local business –

Top Ten Reasons Not to Go to XYZ Restaurant

10.) Drink are priced way to high even if they are doubles

9.) Lyn and Bob no longer own the place

8.) They have the same 12 specials on rotation all the time

7.) That peppercorn encrusted tenderloin special they sell for $25 is select grade beef not prime or even choice meat.

6.) The owners treat their long term employees as if they worthless

5.) Seafood that comes in on Friday will be either frozen and used the next weekend or packed in ice in hopes that they use it, they never throw anything away!

4.) I’ve seen rotting lamb chops that are green and smell like a horses a** be cooked and served to customers

3.) If you send something back there and it needs to be cooked it def. gets cooked in the microwave. The owner insists on it

2.) The walk-in cooler in the kitchen looks like the inside of a dumpster, its disgusting and should not be a place where food is stored

1.) The new ownership is clearly out to take advantage of the consumer and its employees. The food at best is mediocre, the management is rude, and it is just not the what the XYZ was or ever will be again. Lyn made that place her baby and these people are ruining a great local tradition!

Still hungry?