“The line of least resistance makes crooked rivers and crooked men.” Bob Murphey Don’t let your business or you become soiled merchandise-goods no one wants. Entrepreneurs who promise the moon and deliver garbage don’t hang around. Businesses built on words without worth become worthless. Promises-even well intentioned-not kept will create problems-problems your business does not need. Consider, Jake Smith, who was promised a piece of the action. For ten years, as vice president of marketing, Jake worked for a small manufacturer of auto parts, guiding it to ever- increasing sales and profits. But it was only a promise. Periodically, Jake would ask about his stock but was told more than once the company attorney was at fault for not getting the agreements prepared. Being a trusting soul, he partially believed the tale until he heard a rumor that his boss was bringing in a new partner. Upset, Jake demanded his promised equity. Embarrassed, the owner tried to explain that he meant the promise, but his family and the new partner were against giving any stock to any employee for any reason. Jake quit, within months he found a backer and was in competition with his former employer. Vowing to even the score, Jake persuaded many customers to follow his move- and they did. The deception cost Jake’s former boss dearly.” An employee scorned”-need I say more. A soon to be out of business roofing contractor promised the moon to an acquaintance of mine, He claimed no one could beat his price, his workmanship, or the quality of his material. Six months later, when some of the shingles blew off and the leaks started, the contractor was unavailable. He disappeared from the phone book. A carpet cleaning service quoted a low price to shampoo the carpets of one of my readers and when the final bill was prepared, he became angry as the price was 50% more than the original estimate. It seems the cleaning service misunderstood the description of the number or rooms and total square feet. So much for the low bid and so much for the carpet cleaner’s neighborhood reputation. Too many entrepreneurs think nothing of fleecing their customers, disappearing overnight leaving a string of unpaid bills. Too many entrepreneurs confuse business with a confidence game. It is not out of ignorance that many consumers don’t trust some used car salespersons, telephone solicitors, renegade long-distance phone companies, home re-modelers, window installers, driveway dressing contractors, or antique stores. The list of merchants who exist on deceit and deception is long. Sooner or later they go out of business, move on to a different town, and start over. Unfortunately the few unscrupulous business owners cast a shadow over all. Desperate times may cause desperate actions, If your reputation is suffering, rebuild it. Start with your commitments to your customers. If you promise delivery be there or call. If you promise to take care of a problem do it. Avoid high pressure sales tactics and artificial low quotations, if you promise a raise keep it or risk losing your employee. If you promise employee equity keep it or risk creating a new competitor. If you promise a creditor a check, send it or don’t make the promise. Be careful of the impressions you convey. Don’t appear to say yes, when you mean no. Misunderstandings and poor communication can damage any relationship. Honest leadership means keeping your word to those you are leading. No one wants to be lead down a prim rose path of empty promises. Your reputation can be an asset. It is the intangible called goodwill. Check out the balance sheets of some publicly traded companies and you will see goodwill capitalized as a long term asset and part of the firm’s net worth. Grow your reputation and the goodwill you build goes right to your bottom line of equity. As I say, goodwill is money in the bank. Don’t deplete it hoping for shortcuts and quick riches. It makes good business sense to boost the value of your business by boosting your reputation and your equity. In time promises kept, convert to profits, but deception will create deficits. Copyright 1999-2003 Paul E Adams Dr Paul E Adams, Professor Emeritus Business, Ramapo College of New Jersey & Retired Entrepreneur, Syndicated Columnist, Host of the access cable TV program "Tri -State Movers and Shakers," and Author of “Fail-Proof Your Business,” Available @ Amazon.com. Comments, questions, or suggestions to: xpaul@pikeonline.net