The Raw Truth: Making Big Bucks From Startups Takes Time

Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Whether you’re the business owner or the investor, a lot of money can be made from start companies also known as “startups”. The truth however is that these ventures in all likelihood won’t started generating significant cashflow early on. The following contributed post is entitled, The Raw Truth: Making Big Bucks From Startups Takes Time.

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A few companies start generating profit immediately. But almost always, the most financially rewarding enterprises make practically nothing for the first five years of operation. There’s a long ramp between setting up the firm and actually getting a return for all that hard work.

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Take Square, for instance, a company heavily involved in payment systems. The firm, operated by Jack Dorsey of Twitter fame, was lambasted by investors in 2013 for failing to make any money. That year it lost nearly $100 million after taxes and depreciation, and many thought it would fail. Furthermore, the company had already been operational for four years, meaning that such losses were even more difficult to bear. Investors wanted to see a return, but they weren’t getting it.

Just a couple of years later, though, all the doom and gloom disappeared. The company turned things around. And now, it is part of practically every investor’s stock portfolio. You can’t afford to leave it out.

What happened? Essentially, Square spent the first five years of its existence looking for long-term profit opportunities. It didn’t try to satisfy investors by the quarter. Instead, it made decisions that were costly but would set it up for market dominance in the future. These bold decisions then attracted more investors who kept the enterprise afloat until it started making money.

It’s not the only example, either.


Jeff Bezos founded Amazon in 1994. The company increased its sales to around $150 million by 1997 and over a billion in 1999. Unfortunately, it wasn’t making any money over this period. In 2000, the company borrowed billions from investors but had less than $350 million in cash on hand at one point.

It took the firm until 2003 to turn a profit, but it was a weak result. Many people believed that Amazon would never make any serious money.

Bezos, however, had a plan. He decided to invest all additional revenue into the firm to develop its technologies and systems. Eventually, it became the market leader, able to do things other eCommerce brands couldn’t. Ultimately, it came to dominate the market, even managing to beat out rivals like eBay.

Tesla Motors

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Something similar is happening with Tesla motors. The company began in 2003 and yet it didn’t manage to turn its first profit until 2013. After that, it continued to make losses, only making serious money towards the tail end of 2019. That’s a long time to wait!

According to fintech industry experts, something similar is happening in their sector. The InsurTech Accelerator, for instance, provides security for firms with a long ramp. The hope is that the sector will see success stories similar to those of Amazon and Tesla.

Making big bucks, therefore, takes a long time. When you reinvest profits in a firm, you’re essentially compounding your advantage (as you might with a stock portfolio). The longer you leave it to take money out of the company, the more it’ll eventually make (so long as you make smart business decisions).

How To Find The Perfect Company Vehicle

Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. An important company cost to figure out is the company vehicle. Cost has to be factored in, in addition to practicality. The following contributed post is entitled, How To Find The Perfect Company Vehicle.

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Whether you just have a couple of company cars for the directors of your business, or you have an entire fleet of cars and vans that are used by a range of employees, there is a lot that you need to consider when it comes to buying, owning, and managing your company vehicles.

The decisions that are associated with the vehicles will start when it comes to working out which vehicle you would like, and whether you would prefer to buy or lease it.

Whether To Buy Or Lease The Vehicle

Vehicles are expensive to buy and there are a lot of associated costs in terms of running. You will need to decide whether the cost of owning a vehicle is really worth it, or if it may be a better option to look at a lease hire option.

When you buy a company vehicle, the advantages are that it becomes a financial asset. The problem with vehicles as an asset is that they very rapidly diminish in value. The amount that you pay for the vehicle new, will be so much lower after just a few months of ownership. If you were to sell the vehicle on after a year or two, you would not get a good return on your investment.

On the other hand, leasing will mean that you and your company will be able to use the vehicle as and when you need it, and after a set period of time, it will return to the company you took the lease out with.

With a lease vehicle, you would be required to maintain a certain standard to the vehicle, and there may be limitations on the milage that you can do. Any deviation on these points could mean that you have to pay out at the end of the agreement.

Buying New Or Used

If you did decide to go down the route of buying your vehicle, you have the choice of buying new or used. There are definite pros and cons to both options.

As previously discussed, a new car does not hold its value. However, you will get the benefit of the manufacturer’s warranty which may mean a reduction in repair costs should anything go wrong with the vehicle during the warranty period.

Used vehicles can often be much cheaper, with the biggest percentage decrease coming from the first year on the road, buying something that is only a year old will be much cheaper than buying the same model brand new off the dealer’s lot.

Of course, if anything goes wrong with your used car, you won’t have the manufacturer’s warranty to fall back upon and you will have to manage any costs incurred in maintenance yourself.

Selecting Your Vehicle

When choosing the vehicle, work out what you want from it before you decide on the make and model. If you are going to be driving long distances, then you will want an engine that is built to last. How many people will need to ride in it? If it will be used for carrying things, think about the size. If you’re buying a van, decide whether it is important to have a tail lift. You may not currently use pallets to load your vehicles, but if you are likely to do this in the future, having the ability to raise a pallet truck to the level of the van is going to be vital. Fuel efficiency and environmental impact should always be a factor in your decision making, but you may also want to throw in insurance costs, and availability and cost of spare parts. Some vehicles have very cheap generic parts available, while others can be a lot more proprietary.

If you are buying a used vehicle, have it thoroughly inspected and do your due diligence to check that it has never been written off following a major crash. Try and find out about any work that has ever been carried out on the vehicle and ask to see the service history. This will give you an indication of any potential problems that may emerge in the future so that you can factor repairs.

Getting Your Vehicle To Your Business

There are of course practicalities to contend with when buying your vehicle. Getting the car or van from the dealer’s lot can prove to be tough. The vehicle may be coming quite a distance, and it may be that you are unable to go and get it yourself. Or, it may not currently be road legal yet. Whatever the reason, you will no doubt want to look for reliable and cost-effective car delivery options.

Vehicle Insurance

Before you buy your vehicle, you will need to factor how much it will cost to insure it. You will need to get a comprehensive level of cover to ensure that you do not have to pay for any repairs in the instance of a crash where your driver was at fault.

The next thing to decide will be who can drive the vehicle. If it is for a certain person, for example like a company car that a member of your team working in the field will drive, then this is fairly straightforward. You may want to have a pool car, which can be used by anyone with permission, or you may be looking for a delivery vehicle which may be assigned to multiple drivers. Being clear about the way in which the vehicle is used will help to determine how much it will cost to insure it.


There are a great many decisions surrounding the purchase or lease of a company vehicle, and it is important that you weigh everything up to work out what is right for you. The way that the vehicle is used, and whether you wish to view it as a company asset will be vital. Make sure you do your due diligence into the specific vehicle you are buying to make sure that it is the most cost-effective option available.

4 Tips For Hiring The Right People For Your Company

The first principal of my blog is Creating Ecosystems of Success and two key focuses are Business/Entrepreneurship and Career Discussions. One of the keys to success for your company is hiring the right people to perform your critical functions. Hiring the right people can only maximize profits, but it can also solidify the long-term health of your company. The following contributed post is entitled, 4 Tips For Hiring The Right People For Your Company.

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As an entrepreneur, you’ll know that your employees are the hub of your operation. Hiring the right people for your company is both important and challenging. Interviews are a mere snapshot into the candidate you’re taking on; so every moment counts. It’s vital to find a person who can contribute to your company culture and who possesses the right skills and attributes. Let’s consider a few tips that can help you throughout the process.

Create a thorough job description

One of the first things that you’ll need to do is to create a thorough job description. You need to break down all of the duties that the role entails and include them in great detail. You’ll need to define the personality traits and attributes that your candidate is going to need. Consider if you need someone with certain experience or qualifications. Perhaps you are happy for someone to learn certain things on the job? The more thorough that your job description is, the easier it will be to find the perfect person. As well as this, a detailed job description can ensure that you don’t have unsuitable candidates applying for the role.

Plan your interview process

You should create an interview process plan that sets out how many stages your interview will have. It’s key to decide exactly what will be included in each stage. You might have an application form, followed by a first stage interview in-person. Perhaps you’ll then create a short-list of the best candidates to take through to a second-stage interview. It may be that you prefer a group interview with group tasks. Such interviews can be useful if you wish to learn about how a candidate works in a team. When you are conducting your interviews, you’ll want to test the candidates skills and knowledge as much as you can. Some businesses like to create interview tasks to do so; whether a presentation about leadership or designing a marketing strategy. Give your interviewees every chance to show their talents and make a good impression.

Background checks

It’s essential to perform background checks on any candidate before you hire them. Employee Background Checks are a surefire way to ensure that you are definitely getting the right person for the job. Any bad reference or criminal activity could mean that you have to rule out the candidate. Background checks are useful to protect yourself and your company. In many industries, it is a common legality that the employee must pass a police check before they are hired.

Probation periods

It’s a good idea to have a probation period included in any employee contract. In the case of hiring the wrong person, it may be that they do not pass the probation period requirements. If this is the case, you’ll be allowing yourself to then find a more suitable candidate. Make sure that the employee understands the probation period and precisely what is expected of them. When you are looking to hire the perfect employee it’s key to focus on attention to detail from the start.

Why Some Companies Stay in the Slow Lane

Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Some businesses excel and thrive, while others sputter and perish. There are distinct reasons why this occurs and if you want to be in the former group there are things that you need to do. The following contributed post is entitled, Why Some Companies Stay in the Slow Lane.

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There’s no company on earth that is guaranteed success when they first get started. Sure, sometimes it’s more likely for some businesses than others, but if the number of high profile failures has told us anything, it’s that failure is always an option. But let’s not focus on those large ventures: let’s look, instead, at small companies, and specifically at why some seem to rocket up, up, up, and some stay in the comparative slow lane for the duration of their existence. There are some shared characteristics that seem to run through businesses that follow this path.

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They Think Small

You’re not going to get very far, or anywhere at all for that matter, if you possess a small mindset. A company that sees themselves as small will find it impossible to achieve big things. It’s all about vision. There’s a big difference between a business owner that dreams big, and one that has eyes for nothing more than mere survival. Of course, it’s riskier to have a big vision, but as with most things in life, the person that dares is the one that wins.

The Wrong Players

Your company’s strength will depend on part on the need for the products and services that it provides, but you should also look at your staff; they’re the people who are driving the ship. If you’re not hiring correctly, then you will likely find that you’re not making as much progress as you would if you’d developed a robust hiring policy. It takes time, money and effort to hire any employees, but it’s worthwhile devoting that little extra effort to get the right one. If you don’t know how to hire the right employee, take a read of these useful tips.

They’re Not Wired For Success

You could have excellent ideas and a stellar team of employees, but if your business doesn’t have the right infrastructure, then success will likely be hard to come by. That’s because you won’t be working as productively as you could be, and when it comes to business success, productivity is what counts. If you’re currently managing your IT needs on your own, look at handing the responsibilities over to a company such as Tech Squared Inc. They can install the systems you need in order to work at your best, and also free up your time so that you can focus on your core business offerings.

Outdated Working Practices

The working world is changing, and, as with most advancements, it’s for the better. Studies have shown that the traditional way of working has major flaws. The new ways of working, which include more relaxed working hours and unorthodox offices, can significantly boost employee happiness and productivity.

Lack of Development

Finally, make sure you’re not standing still for too long. It’s the companies who refuse to settle, and who instead push forward with new ideas and plans, that achieve success. It’ll be in your interests to keep an eye on where your company is moving in the years to come.

Top Tips For Being A Shareholder

Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. There are numerous ways invest money for a ‘return’. One was way is to become a shareholder. The following contributed discusses what’s involved in being a shareholder and is entitled, Top Tips For Being A Shareholder.

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If you are looking for a new direction to take within your professional career this year, one of the things you could consider doing is taking up the role of a shareholder. A shareholder or a stockholder is any person who decides to buy a small share of a company or a product. As a shareholder you will often be able to get benefits such as discounts on products, dividends as a reward and also a hand in the decision making of the business.

Today we are going to take a look at what it takes to be a shareholder and some of the top tips which you need to know if you want to be a successful shareholder this year. There are some amazing opportunities to be a part of when you become a shareholder and you can see this with Ogletree Deakins Shareholder Appointments, and this is why we want to bring some handy tips and tricks for you today.

1. Look into the business

When you want to become a shareholder the first decision you will have to make is to choose which business you want to invest in. This is a big choice to make for yourself and for the business and this is why you need to make sure you take your time and think it through. A good idea if you have the money will always be to take a share of a brand you know and trust because this can lower your risk. If not though, you need to be very careful with your decision making. Take some time to come up with a budget and narrow down your search to a few different companies. When you do this you will want to take some time to look online and look for any evidence of bad reviews and scams associated with the company. If your search comes back clean and the company seems to be trustworthy then you have no reason to worry and you can go ahead and invest in the company.

2. Do you know the shareholders?

One of the other ways that you can get into the world of shareholding is by being asked to join by someone else. If this does happen to you, be sure that you take a moment to consider before saying yes right away. Have a think about who asked you and decide whether or not you trust them and know them enough to do this with them. It can be a dangerous choice to trust the wrong person so be sure that you take the opportunity to do this and be sure that you know what you are signing up for.

3. Responsibility

Depending on how much of the company you decide to buy, you will be asked to have an input in the decision making of the business to help guide it to success. Therefore because of this you need to be sure that you have a contract on the dotted line of what you are responsible for and what you are not. The reason for this is that you want to make sure you aren’t held accountable for a bad decision which could lose the company some money.

4. Money

The big question to ask yourself and of course the biggest reason why people invest in the first place is to make money. Before you spend money be sure that you check how much you can reasonably afford. When we say reasonably, we mean that rather than adding your whole savings to an investment you will want to make sure that you have a buffer which is kept safe in your bank account. Take the time to come up with a realistic budget and be sure that you only pay what you can afford to risk. Think about the risk of failure with your new shareholding position and this will help you decide how much to put in.

5. Death

If you are to invest highly in a company which only has one other partner, you need to consider what will happen if your partner suddenly becomes ill or dies. It is one of those things that no one wants to think about but you will need to have some measures in place in case the worst does happen. Make sure that you take the time to plan out what would happen if either of you died and this can be a huge decision to make which can save you later on.

6. Exit strategy

As much as knowing what you want to do when you are investing in a business, you may want to know what to do if the business starts to fail. It is always important to have an exit strategy should anything g go wrong and it can be what saves you from losing a lot of money.

How to Collaborate with an Outsourced IT Company

Three of the focuses of my blog are Financial Literacy/Money, Business/Entrepreneurship and Technology. Outsourcing can be very helpful to your business operations. In some instances you can use an outsourced IT company and it’s important to understand how to get the most out of the collaboration. The following contributed is thus entitled, How to Collaborate with an Outsourced IT Company.

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It is now quite evident that many businesses are reliant on IT to be successful but what many aspiring entrepreneurs don’t understand is that they don’t have to be IT geniuses – they just need to hire an IT genius to realize their vision.

Outsourcing is now so fundamental to business that almost any function can be outsourced from PR, HR and Accounting to Cloud Computing. It stands to reason that even the heart of your business idea could be successfully outsourced if you find the right professional to help. Then all you need to focus on is coming up with new ideas and strategies for growth.

Many IT companies such as offer a wide range of services from CIO services right through to email management. However, finding the right company and working well with them can be two mutually exclusive ideas.

Here’s how to manage your relationship and make the most of your outsourcing.

Be Clear With Your Vision

As an entrepreneur you really only have one main job: to have awesome ideas and be able to explain them to other people (preferably people with the cash to buy into it!). This is a fundamental skill and yet for so many of us, finding the language to explain a complicated idea so that it can be translated into an IT solution is tough.

If you can’t explain your idea to a company – either because they simply don’t understand or because you don’t have the right approach – your project is going to stand still until you can. A good IT company will try to suggest what you might mean but a great IT company will ask questions until they are sure they know what you mean.

Clarity isn’t always immediate so work on your relationship to develop a common ground you can work with. This should make future collaboration easier.

Welcome Alternative Ideas

Of course, it could be that you are struggling to communicate your idea because your IT company knows that there is a simpler solution. In this case, it is vital that you are able to let go and welcome new ideas. Being more open minded and focusing on the results is the best way to work. Does it really matter whether you use your idea or their idea to get to what you want?

If you are not an IT expert yourself, it is very likely that the company you outsource to will have all kinds of alternative ideas for you to consider. To work well together, you might find that it is actually easier to present them with a problem first rather than a solution. Compare and contrast the solutions you both come up with and you could just find a game-changing alternative to bring to your industry.

Collaboration with an outside company may not seem as sensible as bringing in your own employees but when you are right at the beginning, it is important that you save money where you can but also get the highest quality product you can afford. It makes sense.

How Do You Find The Best Company For Professional Transcription Services

Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. No matter which business you’re in, identifying a quality transcription service can be critical. In order to find the right one, you have to know what to look for. The following contributed post is thus entitled, How Do You Find The Best Company For Professional Transcription Services.

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From the legal industry to the medical field, there are many companies that require frequent transcription. Most find that outsourcing transcription services proves to be the best option to go for, as it is much more efficient and cost effective. Nevertheless, in order for this to truly be the case, you need to select a transcription company carefully. That is what this post is here to help you with. Keep on reading to discover the main aspects you should consider…

Turnaround Time – First and foremost, it is imperative to discover how long it will take for your transcripts to be typed up and sent back to you. One of the main benefits associated with outsourcing transcription services is the fact that you will get your transcription completed quicker and free up time to focus on the core aspect of your business. You need to ensure the company actually gives you the platform to achieve this.

Experience – You should also select a company boasting a significant degree of experience. You want to be safe in the knowledge that they have provided their transcription services many, many times before to a whole host of different companies. Make sure they specialise in your field, whether you need real time court reporting or medical transcriptions. This will give you the confidence that they will be able to handle any task you throw at them.

Cost – Of course cost is an important factor when using the services of any company. It is important to find the right balance. You don’t want to go for a company that is too cheap, as this could easily indicate a lack of quality. Nonetheless, you obviously cannot go for a company that is too expensive, as you need to be cost efficient. The best thing to do is a bit of research to determine the average prices being charged.

Reputation – In addition to the points that have already been mentioned, you should also consider the reputation of the company. Read reviews that have been left by previous customers. What do they have to say about the service they received? Were all transcriptions accurate? Did the company stick to the turnaround time? Were they easy to communicate with? This is the only way you will get the answers to the questions you truly wish to know.

Ability – Last but not least, let’s end with the most important point of them all, the company’s ability. You need to be certain that they have the capability of transcribing anything you require. On their website they should clearly outline the type of formats they can deal with, as well as any experience they have in your industry. For instance, if you are a law firm, you will want to make sure the company can transcribe anything from affidavits, to court proceedings, to witness statements.

To conclude, if you carefully consider the five points that have been mentioned in this post, you should have no issue finding the ideal company to outsource your business’s transcription services to. The benefits you will gain by doing this are certainly worth it. You will save yourself time, money, and hassle, whilst being certain that you are benefitting from a high quality service.

Save Your Business Ship From Sinking Into The Abyss

Two of the focuses of my blog are Financial Literacy and Money, and Business and Entrepreneurship. Starting any business venture is like setting off on a voyage across the ocean or the sea. As such it’s critical to understand what provisions to load onto your ship, and what protocols to use in various circumstances. The following contributed post is thus titled; Save Your Business Ship From Sinking Into The Abyss.

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Over ninety percent of startups will fail within their first year. This means that many business owners won’t even get out the gates with their company. You have to be prepared for this possibility. You have to know how to right a sinking ship. Luckily, there are a few possible courses you can take here, and we’re going to check a few out right now.

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Manage What You Owe

If your business is starting to sink there’s a good chance, it’s being submerged in debt. When you start a business, you may have to borrow a lot of money, and you probably won’t be able to pay it all back at once. That leaves debt to build up more and more in different areas. The fact it’s in different areas can make it seem smaller and less significant when in reality, it’s eating away at your company. How do you handle this?

Well, you can think about consolidating your debt. Debt consolidation lenders are brilliant because they will provide you with the tools to put all the your debt into one sum that’s easier to pay off. You can start to treat it like another monthly bill. Be aware though, this is a loan, and you have to make sure that you understand the conditions before taking it on.

Alternatively, consider getting the help of an accountant. They’ll be able to make sure that you find out where the money is leaking out and whether you have unpaid invoices from clients. This can help shift some of the weight.

Cut The Costs Right Back

You might find that your company is struggling because it’s just too darn expensive. If that’s the case, it’s time to think about cutting the cost, bringing them in line with the level of demand you’re getting rather than what you hoped to claim when you entered on the market.

There are many ways to cut costs, but if you’re running your business from an office, that is definitely the place to start. Consider whether you can instead move towards a home business model with mobile workers who can come in and help when the needs arise. Or, just move to a smaller office and move most of your workers back to their own homes. This is possible with most company models thanks to the latest tech available on the market.

Go For Broke
Or, go in a completely different direction and push your costs right up, throwing most of the weight into new marketing campaigns. By doing this, you can give one last hit and try and get your audience to grow to the point you need it to be. Yes, this is definitely going to drive up the debt that you might already be facing. But if it’s successful, this could be the risk you had to take to save your company from doom. Make no mistake though, this is a seriously risky move, and it’s one that a lot of businesses won’t survive.

We hope this helps provide you with some choices of how to stop your business from sinking completely.

How To Keep your Company’s Reputation Intact

Two of the focuses of my blog are Financial Literacy and Money, and Business and Entrepreneurship. When building a business, it’s critical to protect your company’s reputation as companies often grow and falter based upon public opinion. The following contributed post is thus entitled; How To Keep your Company’s Reputation Intact.

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There are few things related to your company’s reputation that is easy. They take years to build, yet they can be damaged in an instant. And once you’ve lost your good standing with the public, then it can be difficult to get back. So part of your job as an entrepreneur will be to work hard to make sure that all the news coming out of your business is positive. But how do you do that? We take a look at five ways to keep things looking positive, always.


Own Up To Your Mistakes

It would be nice if everything were always moving in the right direction for your business, but that’s not going to happen. Stay in business long enough, and you’re going to make mistakes. Literally every company in the world makes mistakes! The important thing isn’t to avoid making errors in the first place; it’s to ensure that you’re handling them in the right way. A business that tries to cover up their mistakes will raise doubts with the public. Of course, if you’re only apologising for mistakes once you get found out – like Facebook – then it’s time to consider whether you’re doing something fundamentally wrong.

Tackle Disruptive Issues

You’re not always going to hire employees who are team players, or who have the greater good of the business at heart. From time to time, you’ll have an employee that seems to create an endless amount of troubles for your venture. While you’d like to ignore these problems, you can’t – employees have a lot of power to cause your business harm if the problems aren’t resolved peacefully. If an employee threatens to spread malicious, untrue bad press about your business, then work with a law firm; the services from George Birnbaum, for example, include settling employment-related disputes. It’ll be your best hope for limiting the damage that a disgruntled employee can do.

Stay Friendly With Other Businesses

When you’re a business owner, it’s not about striding out there all on your own. It’s about building bridges between yourself and your client and other businesses. If you’re constantly trying to climb over other companies on your way from the time, then you’re not going to make any friends. So don’t bad mouth your competitors. It might feel good for a moment, but trust us, you’re the one who’ll come off worse for all your talk.

Work with PR Firms

Sometimes, you’ll be hit with bad press that seems difficult to overcome, even if there’s not a grain of truth to it. If that happens, then you’ll be well-served by working with a PR firm to make sure the situation is handled carefully. It’s always possible to get the truth out there, but not always on your own.

When In Doubt, Stay Quiet

Finally, remember that there’s much value in staying quiet! If you think that your mouth might cause your company harm, then keep it shut – it’s better to say nothing rather than something that’ll get you in trouble!