Be Proactive in Times of Trouble

Be trustworthy when dealing with money Marketing experts predict that H&R Block, the U.S.’s largest income tax preparation company, will see less clients coming through their doors this year.

According to the Associated Press, and reported in the February 25th edition of The Record, the service firm “made a mistake in determining its state income tax rates,” resulting in a $32 million error. H&R Block is preparing to restate its earnings for 2004 and 2005, as well as estimated earnings for the first two quarters of 2006.

I learned years ago at a business school class, and also through the example set by Tylenol in 1982, that credibility concerns should be diffused with a proactive approach.

The sting of embarrassment ends when you are first to alert the public, turning the tables on the media so that clients continue to view you as respectable and responsible. I bet that small and solo business owners understand and would take this approach.

A marketing plan must include actionable options, in good and bad times, to tell your side of the story before the media and competitors damage your reputation. The last thing you want is for clients to distrust you and choose other companies as their preferred suppliers.

Consider the proactive approach to be an ally looking out for your best interest.

Technorati Tags: H&R Block, income tax preparation, Associated Press, The Record, Tylenol, solo business owner, marketing plan, small business marketing, small business owner

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February 27, 2006 | Filed Under Problems & Solutions, Recent Entries

Comments

2 Responses to “Be Proactive in Times of Trouble”

Flora Morris Brown on February 28th, 2006 3:39 am

This advice is very sound. Being the first to point out your mistake is a tremendous way to secure your credibility with a distrustful public.

By the way, I had to smile at the irony of H&R Block making a mistake in calculating its own taxes.
Shirley George Frazier on February 28th, 2006 5:52 am

Flora,

Your reaction to this article probably mirrors what millions of others did when reading it, which is why, in my opinion, it’s better for a company involved in preparing other people’s taxes to come clean before the media runs with the story.

But perhaps they believe profits will still be made no matter what.

Small and solo business owners cannot afford to be so confident. We must dot every “i” and cross every “t” to ensure public trust. Companies such as H&R Block can and should learn from our business practices.