Honesty is a vital component of profitability. This is a concept I’ve been toying around with since my conversation with Larry Winget. According to Larry, dishonesty and a lack of core values is what is wrong with business nowadays. Not only must we demand honesty from businesses whose services we consume, but we must demonstrate trustworthiness in order to retain clients.
When big businesses regularly set poor examples for business ethics – skirting around labor laws, releasing misleading ad campaigns, evading EPA regulations – it’s tempting to sink to the lowest common denominator. If that’s how multi-billion dollar companies do it, isn’t that how I should do it too? Not necessarily.
Being honest with your clients will directly impact your profitability. Customers recognize quality service and by always following through on promises, you will gain their trust. Better yet, when you know you won’t follow through on a promise, communicate honestly and early. Show your respect for your customers and you could gain their lifetime loyalty.
Over time, your reputation for honesty and superior customer service will spread and earn you more clients. On the flip side, a reputation for manipulation and unreliability could be the death of your business.
When faced with your next difficult decision, to tell a small white lie or to bend the truth, think about what will best drive your profitability.