Comprehensive Tax & Legal Solutions

When a public relations crisis strikes a small business

On Behalf of | May 12, 2017 | Business Law

Among the things that can fill a small business owner with dread is a public relations crisis. There are many things that could lead to a small business facing such a crisis. This doesn’t just include missteps by a company, but also things out of company’s control.

However a PR disaster comes about, how a business responds to it matters considerably. Such crises can be particularly tough on small businesses. Among the things a major PR problem can do is harm a company’s reputation, which could drive customers away. A significant loss of customers, even for a short period of time, can subject a business to a big financial hit. Small businesses often don’t have much of a financial cushion available to help weather such a hit.

While small businesses can be particularly vulnerable to the impacts of a PR crisis, they can also have an advantage when it comes to responding to such a crisis. The small size of such a company can give it nimbleness conducive to quick and creative responses to problems. When a PR disaster comes up, it can be important for a small business to quickly to action to protect its reputation.

Many things could have reputation effects on a small business in the wake of a PR crisis. Among these are how the company conducts itself in any litigation that comes out of the crisis. So, when facing legal disputes with a customer or another party in relation to a PR disaster, a small business owner may want an experienced business lawyer’s guidance on what they can do to protect their company’s reputation and other key aspects of their company’s well-being during the process of dealing with the dispute.

Source: The Blade, “Public relations disasters hit small businesses harder,” May 12, 2017