Does a Bad Business Reputation Matter?

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Many people grow up learning to disregard what others think about them. And, for the most part, this is a good way to deal with unfounded criticism and negative influences. Blocking out what “haters” have to say can help you accomplish some pretty impressive goals.

However, at the same time, business reputation does matter a great deal. For better or worse, how a company is perceived can have a big effect on how it performs in the present and future. Indeed, a business’s reputation may enhance or hinder its future prospects. Thus, making it more important hoe you view what your customers or other people see in your business.

Negative Effects of a Bad Reputation

When companies develop a bad reputation, they can suffer its ill-effects in a myriad of ways. For one, a bad business reputation could make it difficult for a company to successfully recruit new talent. Few professionals are willing to work at places that have a perceived history of mismanagement.

Additionally, a bad reputation can unsettle current customers and turn off quality leads. The long and short of it is that –– in the worst-case scenarios –– a poor reputation can sink a growing business. Determining what your bad reputation and how you can reverse them is something which you can do to lessen the effects of what bad reviews people will give you and your business.

Determining Reputation

What’s more unsettling than having a bad reputation and knowing about it, is having a bad reputation and not knowing about it. Yet, the reality is that many business leaders don’t realize exactly what their employees, customers, and consumers, in general, think of their brand. As such, it’s imperative to utilize audience analytics tools and employee surveys to get a deeper understanding of how others view your company. You can also try and visit and search your own business on social media or on the internet to see how people view your business. The results of these measures might surprise you, but they’re clear indications of business reputation. Remember, your reputation is subjective, but also cumulative; one person cannot dictate perception. 

Reversing a Negative Reputation

Ignoring a negative reputation is not a sign of strength or quality leadership. In fact, it’s often just the opposite. Even if you feel your company has an undeserved negative perception, pretending it doesn’t exist won’t make it go away. Instead, the only way to reverse a bad reputation is through hard work. Consider creating social media posts or marketing efforts that acknowledge the criticisms of your brand, and display what you’re changing to improve your company, you can also try to create polls or feedback form which can identify some of your customer or clients view on what you need more improvement on. Hundreds of high profile companies have gone back to the drawing board in this way and subsequently launched very successful advertising, marketing, and PR campaigns. 


No one likes being judged unfairly or being slighted. Still, successful professionals understand that perception in business is just as –– if not more –– important than reality. Keep this in mind at all times. You’ll be glad you did!