From Twitter, Facebook and LinkedIn to customer review sites like Yelp, the internet and social media have transformed the way small businesses market themselves. Just look at this recent New York Times article about mom and pop businesses that are thriving thanks to Twitter.
Yes, social media can be great. But it also presents potential problems and liabilities for small businesses that don’t take the time to manage their risks. Here are three ways that social media can hurt you, if you’re not careful:
1. Your employees tweet or blog something negative about a competitor. It may not seem like a big deal to you, but your competitor could sue you for unfair competition, interference with contract, business disparagement or defamation. One way to manage this risk is through a written social networking policy. If you’re sued, this will help establish that your company should not be held liable because the employee’s actions were outside the scope of his work.
2. An employee discloses confidential company information or a trade secret on a social networking site. This might happen innocently enough — an employee tells a friend what he’s been doing at work, and next thing you know, your great new idea has been stolen. Employees should sign confidentiality agreements, and you should consider explicitly discussing social media disclosures in those agreements, as well as in your company social media policy.
3. Your company gets negative reviews on a customer review site like Yelp or TripAdvisor. These sites are gaining in popularity, and they’re a blessing if your business gets positive reviews, but a possible disaster if the reviews are negative. Smart business owners are proactive in managing their online reputation. Set up a Google Alert for your company name, so you’ll be notified whenever it shows up in a Google search. And pay attention to what’s being said about you. If it’s negative, take steps to repair the damage and improve your online profile. Check out this article from Business Week Online for more tips on maintaining your online reputation.
