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Reputation Management: 5 Steps to Rebuild Your Image After a Lawsuit
(0) Reputation Management: 5 Steps to Rebuild Your Image After a Lawsuit

The end of a lawsuit – or any crisis, for that matter – can necessitate the question of how best to move on.

How to rebuild or manage your reputation going forward after a public embarrassment can be a significant challenge, and not just for major public figures like Martha Stewart or the heads of large companies like United Airlines.

While celebrities or other wealthy individuals can afford teams of professionals to help them navigate the obstacles of managing their image, the rest of us often need to find our own way – perhaps with the help of a trusted friend or family member. Here are five critical steps you can take to help you find your way through these troubled waters.

1. Avoid speaking publicly on the cause of the crisis.

Revisiting or rehashing the past is almost never beneficial. If you need a reason to help avoid the conversation, you might suggest that your preference for staying quiet is based on advice from legal counsel. Whenever the subject of your lawsuit or crisis does arise, be careful with what you say. You want to avoid appearing at all confrontational, or like you are trying to explain away or defend yourself or your actions. This may give the impression that you are making excuses, which will only reinforce any negative perceptions that people have about the incident.

2. Stay away from further sources of trouble or controversy.

This should go without saying, but moving forward you need to avoid any behavior that could get you into more (possibly worse) trouble. You will also want to avoid associating with anyone who might get themselves into trouble of their own and tarnish your reputation in the process.

Make sure to pay your bills in full and on time. The key here is to avoid any new crisis – financial, legal, or moral – that will remind people of your previous problems.

3. Get back to work as soon as possible.

Being productive is not only good for your psyche, but also for public perception. Work to regain your confidence, but be sure to avoid anything that could create a perception of being cocky. This can mean scaling back your ambitions – or public discussion of those ambitions at a minimum – and going quietly about your business. You should try to create or reinforce the perception of yourself as reliable, honest, hardworking and trustworthy.

4. Strive for an easy-going demeanor.

They say that the meek are destined to inherit the Earth. To effectively manage your reputation after a lawsuit, you want to avoid being too loud, overzealous, confrontational, or generally rambunctious. However, that does not mean you should strive to look like a push-over. Instead, let an air of quiet confidence and cautious optimism govern your behavior. Keep a level head, and avoid putting on airs.

5. Indulge in some philanthropy.

After a time, you may want to consider some small-scale philanthropic activities. Try to avoid undertaking anything that might call unwanted or excessive attention to yourself or your legal trouble. Be understated but helpful in your efforts. You may want to align yourself with a philanthropy that is somehow related to the subject of your litigation – if the role is a good fit. However, make sure that your involvement puts you on the right side of the issue, and be very careful not to look like you are only getting involved to help polish your image. The negative perception that might be generated by being seen to use a charity for personal gain will be greater than the positive impact of the philanthropy on your image.

Conclusion

No lawsuit or crisis is ever pleasant. Even though they may get our adrenaline running or force us to focus on efficiency, they are still extremely stressful and counterproductive. Even if we win or ultimately find ourselves vindicated, lawsuits still adversely affect public perceptions of us and our reputations. While there is some novelty found in our brief celebrity, it is quickly outlived and requires us to be far more cautious and purposeful in rehabilitating or shepherding our reputation. 

For those who represent substantial interests or find themselves in the public spotlight for the wrong reasons, it can be helpful to surround themselves with professional teams to help manage their reputation after a lawsuit or other crisis. However, whether efforts are being coordinated by paid professionals or just with the help of a friend or family member, the points listed above should serve as guideposts to help rekindle a tarnished reputation or otherwise return to productivity and put the past behind us.

Image by iStockPhoto.com

About the Author:

A Suffolk native, Sara Waterson has been writing for Net Lawman after graduating at the top of her class at the University of Nottingham. She is passionate about law and seeks to educate her readers to the best of her ability. In her spare time, Sara loves to spend time walking in the local countryside with her partner and two dogs.

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To your customers, you are your business.

YOU are undoubtedly one of the major reasons that your entrepreneurial business is successful. You remain a key component of what is described as the “value” of your business. Clients, customers and staff consider "you" to be “the business”.

In planning for succession, retirement, sale of a business, or the withdrawal of equity from the business, you need to properly consider the question of how to extract or protect the value of the business.

This planning process begins by (i) a careful examination of the issues faced by the business and consideration of the options available, and then (ii) a step by step process of preparing legal documents, making any required changes in the corporate or financial structure of the business, and a review of your approach to the business.

Do any of the following scenarios apply to your business?

  • There’s no time to think about planning for the future because (1) the business is very busy, or (2) the business is finally turning around, or (3) the business is going through some tough times but you have confidence that things will change if you just work harder and smarter and better. 

  • You’ve been in business for awhile but you have not yet pursued any significant long term planning, although you know you should. Now your circumstances are changing, you're getting older and so are your customers.

  • You have considered some long term planning, but most of it is still being worked out in your own thoughts and it has not been reduced to writing.

  • No one but you knows the full picture of how to manage the business, but you just haven't had time to write it all down.

Why you need to consider preparing a succession plan now.

  • You are not going to be leading the business charge forever. You're getting older and you need to consider what happens to the business when you can no longer run it.

  • If you do not give key employees some equity in the business, they may either start their own business or go to work for a competitor who is prepared to give them equity and more opportunity.

  • If your children are involved in the business, they will want to take a greater role and more responsibility and authority in managing the operations.
  • If your children are not involved with your business at all (except to the extent they share in the revenues generated by the business), you need to consider who will take over the business when you retire.

  • Speaking of retirement, don't you want to enjoy the benefits of the profits for which you have worked so hard while you still have your health and are able to travel and be active?

  • Maybe you've decided it's time to sell the business but are not sure how to “package” it and make it attractive enough for someone to buy it at the price you believe is fair.

How a business succession plan benefits family members

Your spouse or children may not be familiar with the workings of your business or its inherent value (hidden or future) and they could be at the mercy of your partners, your employees or your competition if something happened to you.

In a family business, those family members who are actively involved in the business may want to continue to build it, while other family members who are not involved in the business may want to sell it in order to realize on its present value. And if you have a child with special needs or a spouse or parent who needs care, their interests may not be best served by those surviving you or by leaving your estate in the hands of others without proper instructions.

A written succession plan can deal with all of these issues.

Planning for the unexpected

The bubble has burst in our economy - stocks are down, real estate prices have plummeted, interest rates are going up and creditors are nervous. Does your current business plan consider these kinds of contingencies? Do you know what the tax costs would be to your business or to your estate if you died tomorrow?

Your business may be healthy so long as you are healthy, but if you have no succession plan in place to provide for sudden accident, illness or death, how would business decisions be made in such an event?

Summing Up

Take a moment to evaluate what might happen to your business, your estate and your family if either you or your business suffer a sudden set-back. Now is a good time to begin the process of succession planning for your entrepreneurial business.

Image by Dirk Wouters from Pixabay

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