5 Vital Ways Criminal Charges Can Impact Your Business
If you own a business, you probably face many challenges. You must hire the right employees, and you need the best marketing campaigns to get the sales you want. You may also approach credit unions or banks and get additional funding. You might court angel investors or venture capital firms instead.
If you face criminal charges, though, that can impact your business in several different ways. Maybe you didn’t commit a crime, but just the allegation can harm your company or its standing. We’ll discuss some ways criminal charges can impact your business enterprise right now.
You Might Lose Some Customers
If the police accuse you, you’ll need legal representation. However, you may also lose some customers once word gets out.
Maybe you didn’t actually commit any crimes, and you’ll fight the charges. In the meantime, the accusation might make the local news. Your business might show up on TV or in the newspaper.
When that happens, you might lose some customers or clients. Perhaps the police say you did something really egregious, and your company has a squeaky-clean image. If so, some clients or customers might shy away if they hear about any possible impropriety.
You May Lose Some Employees
You may also lose some employees. Maybe the police say you did something very objectionable, and your workers won’t like hearing about it.
You can tell them you’re innocent, but maybe they won’t believe you. Perhaps you’ll see two different groups form. One might feel they should stay with you and keep backing you because they believe you didn’t commit the crimes. The other may think you did it, and they might walk away.
If that happens, you must hire some new employees. You can spend time fighting the charges, but even while you’re doing that, you must scour Monster, Indeed, and other job sites. You might also look at LinkedIn to find some replacement workers.
You Might Need a Crisis Management Team
You may need a crisis management team while you’re fighting the charges. You can hire one, and they can suggest how you might get past this.
They may say you should issue a press release. They can write a statement and read it on your behalf. They might also feel you should read the statement yourself.
The statement might say you completely deny the charges and that you will exonerate yourself. You can say you’ll have your day in court, and the facts will come out.
The crisis management team might also arrange some client meetings. Maybe you have just a few key clients, and losing them might devastate your business. If so, the crisis management team can tell you what you’d better say that might keep those clients loyal.
The team can post a message on your company’s website if they think that’s appropriate. Maybe you have a mostly or totally eCommerce business model. The team can tell you what you should say that might convince people who use your site they should keep buying your products or ordering your services.
You May Lose Some Collaborations
Maybe you have some business collaborations that you value. Perhaps you make products or offer services along with some other business entity.
If the other company hears about the accusation, they might feel they can no longer stand with you. They may abandon you because they do not want the negative publicity. Even if they believe you, maybe they feel you’ve become toxic, and they must sever ties for their own company’s good.
You May Give Other Entities in Your Niche the Upper Hand
If the police say you committed crimes, and they arrest you, that probably gives other companies in your niche the upper hand. Very few industries have no competitors. You almost always have other companies that make similar products or offer similar services.
Maybe you’ve carved out a niche for yourself, and you have some loyal customers. If they hear about what’s happening, they will probably seek out other companies to get what they need.
At that point, other companies you held at bay might surge ahead. Perhaps if you win your court battle and prove your innocence, some of your customers might come back. Other companies have an opening now, though, and they might take advantage while they can.
If the police accuse you, and you didn’t do anything, you can always fight back, but just the allegations might harm your business. That’s unfortunate but true.