Mysteries of a Gen-Y Confidant Rotating Header Image

Morally Bound

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The question faced by providers continually is the obligation to their customers, versus the obligation to shareholders. Torn between profits and the ability to provide quality products. Customers expect the truth from their providers in terms of service, quality, and performance. Each large corporation faces the so-called principal-agent problem of incentives; the beauty is that this “problem” is avoided by small business.

Assuming your business is small enough to avoid bureaucracy, there is a distinct opportunity to provide your customers with a superior product. As a business you no longer have to worry about your bond ratings or your stock prices, you need only worry about your customers. This does not avoid the inequality of knowledge afforded by your ability to be seen as an expert in your field. By leading your customer to believe you have the ability to “know what’s best” you can basically tell them anything and they will believe you. The consumer in a generalized term is easy to fool; consider how many people buy items from shopping networks. There is no comparison; it is purely based on impulse and the ability of the advertiser to convince you that you need the item. Based on this life example how many of those necessities end up discarded or unused?

Back to the point, as a business owner, expert or consultant, you have the ability to show your clients or customers a new world of truth. This may be a little utopian but the fact remains that the small business that that grow into big businesses have provided their customers with products that are best in class, and not driven solely by profit margins.

Look inward towards your product, or service, your content if you are a blogger; honestly consider whether you provide a meaningful and honest service. Is it worth the price you render or have you created an effective sales funnel based on profits? Whatever the answer remember the truth often reveals itself in not to subtle ways usually ending in catastrophe for the small business.

Establishing yourself as an expert is easy with a little homework, establishing reputability for your corporate identity is another matter, one slip and you’re tossed to the curb. The incentive for a small business owner should not only be the check he or she writes to himself at the end of the year but also their ability to provide for their customers in an honorable way.

Measure your success in the positive impact you have on the community, not only by the number of zeros in your bank account.

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