But at its core, governance is simple: it’s how decisions are made, implemented, and monitored. It’s the framework that determines who’s responsible, what the rules are, and how an organisation (or a country) ensures transparency, accountability, and fairness.

Right now, the world is witnessing what happens when governance breaks down.

In the corridors of global power, we are seeing staggering instability. Whether it’s tariffs being imposed and reversed on a whim, international agreements unravelled overnight, or economic decisions made with little warning or explanation, the lack of transparency and consistency from some world leaders is having very real consequences. Entire economies are reacting to late-night social media posts. Global alliances are strained. Financial markets, unsure of what tomorrow will bring, are jittery.

This uncertainty filters down rapidly. Small businesses are on the frontlines of this instability. We don’t have the luxury of “waiting it out” like large corporations. We are directly impacted when interest rates shift unexpectedly, when supply chains are disrupted, or when consumer confidence falters in the face of erratic leadership.

This is not about politics. It’s about governance. And the truth is, the current global climate is a masterclass in what poor governance looks like.

Poor governance is opaque. It lacks accountability. It creates an environment of unpredictability, where rules change without warning and where decisions seem driven by impulse, not evidence. In contrast, good governance is built on clarity, transparency, consistency, and responsibility. It helps organisations and nations navigate uncertainty with purpose, providing a clear path forward even when external conditions are tough.

For small-business owners, the lesson is both sobering and empowering. We may not be able to influence what happens in Washington, Brussels, or Beijing, but we can take control of what happens in our own businesses.

And that starts with getting our own governance right.

At the small-business level, governance doesn’t need to be complicated. It means having clear roles and responsibilities, documented policies and procedures, and a commitment to ethical, transparent decision-making. It means knowing who is accountable for what, and having systems in place to monitor and evaluate decisions. Importantly, it means embedding good risk management into our governance frameworks because without risk management, governance is just theory.

Risk management and governance are two sides of the same coin. When small businesses actively assess the risks they face, from cybersecurity and climate change to supply chain vulnerability and legal compliance, they are not just protecting their bottom line. They are creating a resilient foundation that supports long-term success.

This is especially vital when the world around us is unpredictable. While global leaders may be playing a dangerous game of improvisation, small businesses cannot afford to follow suit. We need to lead with intention, not reaction. We need to model the very governance principles that seem to be absent on the world stage.

In doing so, we not only protect our own businesses. We also demonstrate the power of ethical, transparent, and responsible leadership. When trust in institutions is eroding, small businesses have an opportunity to be beacons of stability. Our customers, employees, and communities are watching. And they value businesses that are run with integrity and foresight.

Governance is not just for the boardroom. It’s a vital tool for navigating uncertainty, building resilience, and sustaining success. In times like these, good governance may well be our greatest competitive advantage.

So, while the headlines rage on and the tweets keep flying, let’s double down on what we can control. Let’s lead by example. Let’s govern well.

The post When governance breaks down at the top, small businesses must lead by example appeared first on Inside Small Business.

When small businesses seek to collaborate with large organisations, they often view the process as daunting, filled with rules, requirements, and assumptions that can make success feel out of reach. However, from the perspective of big companies, the challenges and priorities are equally significant.

What if big company decision-makers had a chance to communicate their viewpoint directly to SMEs? Imagine if a procurement executive could share a letter like this, offering insights into how large organisations operate and what they truly value in their suppliers.

Here’s what that letter might look like:

Dear SME Partner,

As a procurement professional for a large organisation, I wanted to share some insights that I believe can strengthen our relationship and help both of us succeed. At its heart, this is about mutual understanding, trust, and creating value together.

Your reliability is essential to us

Your role in our supply chain is crucial. For us, consistency and reliability are non-negotiable. We need to ensure that every delivery, every interaction, aligns with our commitments to our stakeholders. If there’s ever a challenge that could impact your ability to deliver, please communicate early. It helps us plan contingencies and maintain trust within the supply chain.

Compliance isn’t just red tape

I understand that our compliance and documentation requirements can feel overwhelming. They exist because our operations are tightly governed by regulations, risks, and expectations from our clients and regulators. Meeting these standards protects all parties, including you, from unforeseen complications. If you ever feel stuck, let us know, and we can help guide you through the process.

We value your unique contributions

As an SME, you bring something to the table that larger suppliers often can’t – agility, innovation, and specialised expertise. Don’t underestimate the impact of these strengths. While price competitiveness is important, what sets you apart is your ability to adapt quickly, propose creative solutions, and go above and beyond to meet client needs.

We’re always interested in hearing your ideas. If you see a way to improve a process, reduce costs, or enhance the end product, we want to know about it. Collaborative innovation is one of the most rewarding aspects of working with smaller suppliers, and it’s an area where you can truly shine.

Price isn’t everything

While competitive pricing is important, value often comes from quality, service, and innovation. When presenting your proposals, be sure to highlight how you add unique value. This can be the edge that sets you apart, even in a price-conscious market.

Growth takes patience

We know our processes can seem slow compared to the pace of small businesses. However, this deliberation ensures thorough evaluation and a focus on long-term partnerships. Stay the course, and be prepared to demonstrate scalability and resilience—these are key attributes we look for in our partners.

Integrity is paramount

We value relationships built on honesty and respect. Clear communication about your capabilities, limitations, and potential issues is critical. We’re here to solve problems together, but we need transparency to do that effectively.

A shared vision for success

Finally, we genuinely want you to succeed. Your growth benefits us, as it enhances our supply chain’s resilience and capability. If there are opportunities to improve how we work together, please don’t hesitate to reach out. We see this as a partnership, not just a transaction.

Thank you for your continued commitment and partnership. We’re stronger together, and I look forward to what we can achieve side by side.

Warm regards,
Big Company Executive

Now I know that for some large organisations, a letter like this is pure fantasy – they don’t yet share such an enlightened attitude to business.  But for those organisations that do, this open, honest communication is exactly what bridges the gap between small and large businesses, benefiting all of us.

If you are supplying a large company that would not be able to write this letter, maybe you could surreptitiously ensure your big-company contact gets a copy to give them a hint!

The post The letter that will help small businesses understand big companies appeared first on Inside Small Business.

Don’t you wish the big company decision-makers understood your perspective better? Imagine being able to share thoughts like these in a cover letter or conversation.

In fact, I encourage small businesses to be open about these realities which I call the “GAP Effect” – the space between small and large companies that is difficult to bridge. Here’s how a small business might communicate its position, and challenge the assumptions made about SMEs as suppliers.

Dear CEO,

I hope this letter finds you well. As a small-business owner eager to partner with your company, I’d like to share my perspective on the vetting process we go through. I understand that managing risk in your supply chain is vital and we’re fully committed to meeting your criteria. However, I believe an open dialogue about this process could help us work together more effectively.

Financial Stability:

I completely understand why financial stability is critical. If we were in your shoes, we’d also want to ensure that every link in our supply chain was strong. We’ve made it a priority to keep our financial records in top shape, and we’re happy to provide any documents you need to demonstrate our stability and commitment.

As a small business, we face different challenges to you. Our margins are often slimmer, and we probably don’t have the same financial reserves. However, we’ve built in safeguards and have a strong track record of managing risk. While our balance sheet may not look like that of a large corporation, we offer agility, innovation, and local knowledge – qualities that may be harder to quantify than $$ on a Balance Sheet, but are just as valuable.

Operational Capacity:

We take our operational capacity very seriously. We’ve worked hard to develop scalable processes Still, I believe that closer collaboration in forecasting and planning would allow us to serve you better – consistently meet your expectations and ensure timely, accurate deliveries. This benefits both our businesses.

Quality Control:

Quality is the cornerstone of what we do. Like you, we know that delivering a high standard of work reflects well on both parties. We’ve implemented rigorous quality control measures. Our goal is to show that we can meet, and even exceed, your standards.

Compliance and Risk Management:

We know that regulatory compliance and effective risk management are key to maintaining  robust supply chains, and your reputation. While small businesses like ours sometimes struggle with the complexity of regulations – we don’t have teams of in-house lawyers – we’re committed to staying compliant. We would greatly appreciate any guidance or support your team can offer to help us navigate this area and ensure that we continue meeting your requirements.

Ethical and Sustainable Practices:

As a small business, we’re deeply committed to ethical and sustainable practices. We live in the communities where we operate, and live with the consequences of our actions. We believe that our operations should contribute positively to both our community and the environment. Our sustainability initiatives and fair labour practices are part of who we are. We’re eager to align with your Corporate Social Responsibility (CSR) goals to make a meaningful impact together.

Yours sincerely,

SME Owner

Could you write this letter honestly?

Often, it’s not that small businesses don’t have what it takes, but they may not fully understand what needs to be done to reach the next level. Taking a step back to reassess your position could help close the GAP and open the door to those bigger opportunities.

Open communication and emphasising the unique value that small businesses bring – whether it’s agility, innovation, or local expertise – you can move toward building strong, mutually beneficial relationships with larger companies.

The post The letter that will change how big companies see your small business appeared first on Inside Small Business.

Before I go any further, I want to introduce a different term for SLO – Social Value (SV). Mining giant BHP created this term, and I’m a convert.  

Unlike “licence,” which implies permission to do something that might have negative consequences (think Driving Licence), “Social Value” carries a positive tone of contribution and benefit. So, let’s continue, using “Social Value”.

For small businesses, this concept isn’t just a buzzword—it’s our daily reality. We’re deeply embedded in our communities, and we understand how vital reputation and relationships are. Yet, many large companies don’t fully appreciate the role we play in helping them secure and maintain their own Social Value.

Here’s what small-business owners want big companies to understand about Social Value.

Social value is more than corporate philanthropy

SMEs, Social Value is the core of everything we do. We live and work within our communities, and our success depends on acting ethically and contributing positively. Our customers expect us to be more than a business but also a positive force.

When big companies enter a community, they can bring both benefits and challenges. Too often though, they focus on their bottomline without fully grasping how much community trust and goodwill influence their long-term success. It’s more than just donating to local causes or supporting the local footy team. Real Social Value comes from genuine engagement and meaningful partnerships—particularly with local small businesses.

How big companies can strengthen their social value

1. Invest in the local economy by supporting us

Supporting the local economy starts with supporting local businesses. When large companies choose local suppliers, contractors, and service providers, they’re not just meeting procurement needs—they’re investing in the community.

Each time a big company buys locally, it helps sustain jobs, encourages local entrepreneurship, and keeps money circulating within the community. This benefits both small businesses and the larger corporation by fostering goodwill and trust, which are key to maintaining their Social Value.

2. Leverage local knowledge

We are deeply connected to our community. We interact daily with local people, understand their needs, and know the pulse of the area. Big companies can leverage this local knowledge by partnering with us instead of imposing their own agenda without fully understanding community dynamics.

When big companies involve local businesses in decision-making—whether it’s about sourcing, community projects, or local engagement strategies—they gain valuable insights that help them build stronger community ties and Social Value.

3. Promote sustainability and ethical practices together

Sustainability and ethical practices are foundational for small businesses. Our customers care about where products come from, and how they are made. By partnering with local businesses that prioritize these values, big companies can enhance their own Social Value.

Whether sourcing materials from local, sustainable suppliers or collaborating on environmental initiatives, these partnerships show that a company cares about more than just profit. They demonstrate a commitment to the well-being of both the community and the planet.

What big companies need to understand

For small businesses, securing Social Value isn’t about corporate strategy—it’s about what happens in the community, every single day. Big companies need to realise that partnering with local businesses is not just ticking a box. It’s about building trust, fostering long-term relationships, and securing their future success.

We are not just vendors—we’re partners in the community. When large companies support small businesses, they help us grow and, in turn, strengthen their own reputation. If we work together, we can create a resilient, sustainable, and prosperous future for everyone involved.

The post Dear big business: here’s what small business can teach you about adding social value appeared first on Inside Small Business.

At the time, our region was in a severe downturn, and I was working with a group of very clever, experienced people on how to build the capacity and capability of our regional businesses. In those conversations, we identified Nine Core Business Skills:

1. Business/strategic planning.
2. Finance management.
3. Sales and marketing management.
4. Operations management.
5. IT/digital capacity.
6. Human resources management.
7. Procurement/supply chain management.
8. R&D, product or service development/innovation.
9. Leadership development.

That was a huge breakthrough in our thinking. Now we had a framework to shape the business skills development activities around.

I then took that thinking a little further, every business will be at a different stage of maturity in each of those business skills over time. I use a sporting analogy to describe the skill levels:

• Novice (Early/Beginning/Establishing): This stage represents the business owner who is just starting out, learning the basics, and building foundational skills.
• Competitor (Developing): At this level, the business owner is actively developing their skills, gaining experience, and starting to make significant contributions, much like a competitor who is in the race and steadily improving.
• Pro (Developed/Established, Advanced): This label is for the seasoned business owner who has honed their skills, achieved significant success, and is recognised for their expertise, similar to a professional athlete who performs at the highest level.

Here’s the important part.  Not every business will require every skill at pro level.

For example, one of our group owned a shoe store. She did not need a high-level, International standard, workplace health and safety system, so she would never need advanced skills in that area. Someone starting out, with no online presence, would look for an introductory website-building workshop. A business owner contemplating a contract to supply a large company might look for an introductory workshop on creating a good capability statement, while someone more experienced would look for advanced tender-writing training. Businesses with a very mature social and digital profile may be interested in advanced workshops on Facebook marketing techniques, or webinars on building the best possible LinkedIn profile. You get the idea.

Hence, a business owner can pinpoint:

• What level of skills they need in each skill category.
• Where their skills are at the moment.
• What training/courses/mentoring they need.
• Whether a particular skills development opportunity is worth them spending time and money to enrol.

Using this framework, every business owner can choose the most appropriate business development opportunity, without wasting time and resources on hit-and-miss training opportunities.

Now you can research and identify available resources that align with both your current skill level and your business’ needs. There is a plethora of online courses, workshops, webinars, and mentoring programs tailored to various skill levels so I’m not going to even start listing them here. Talk with other business owners – what have they found helpful? Can they recommend some resources to you?

If you honestly evaluate 1) the skills you really need in your business and 2) where your skills are now, you can save a ton of wasted money and time. You all know that getting out of your business for a training day is hard, so make the time you do spend on gaining new skills really count.

The post The nine core business skills – do you need them all? appeared first on Inside Small Business.

This is a common scenario for many small businesses, and it’s a challenge that transcends mere size differences. You will have to delve into the nuances of different and distinct business languages and cultures. I call it the GAP Effect, and I speak and write on this topic often because it’s such a big issue, increasingly so in Australian and NZ Business.

Understanding the communication challenges

Complex processes: For small businesses, delving into the workings of larger companies can feel like navigating a maze and be overwhelming. These giants operate with a complexity that includes layers of approvals, stringent compliance, and bureaucratic hurdles (and bungles …). The complexity can be daunting for smaller, more agile players.

Decision-making speed: We, as small businesses, often pride ourselves on our quick decision-making abilities. Our leaner structures allow for agility. In contrast, larger organisations, with their layered hierarchies, often move slower, bogged down by extensive approval processes. (Translated into practical outcomes, this means that, while your big competitor is filling out forms to get approval to buy a plane ticket, your company will have contacted the client, possibly visited them, and have the whole problem solved. All while your competitor is still waiting for approval to leave their office).

Cultural divide: There is a distinct cultural gap as well. Large companies usually adhere to formal communications and structured processes, focusing on scalability and minimising risks. We, on the other hand, tend to thrive in a more informal, flexible setting that fosters innovation and personal connections.

How to Bridge the gap – trust and respect play a big role

Fostering strong relationships: The cornerstone of smooth communication lies in trust and mutual respect. I know, that sounds so old-fashioned, but transparent personal connections can help navigate through communication challenges. Regular, open, dialogue and a willingness to empathise with the other party’s viewpoint are vital.

Clear and consistent communication: It’s crucial to simplify complex concepts into clear, understandable messages. Strip away the jargon and ensure straightforward communication. This can significantly improve mutual comprehension and trust.

Understanding each other’s worlds: An effective partnership requires a deep dive into understanding the internal dynamics, limitations, and priorities of our larger counterparts. This means recognizing their adherence to risk management and procedural complexities. Yes, it takes a bit of work, but all successful partnerships do.

Enhancing partnerships for stronger supply chains: Effective communication is the bedrock of successful partnerships. If we can align our communication styles – or at least understand them – we can collaborate more effectively with our larger partners. This improves individual relationships, and bolsters the resilience and efficiency of the entire supply chain. Everyone benefits.

As we progress through 2024, I urge you to focus on understand and leverage your approach to building trust. There are real opportunities for SME owners and managers who understand how important trust and transparency have become in business communications.

As an aside, the Edelman Trust Barometer was released last 15 January and is about how much we trust (actually, it’s how much we don’t trust) governments, NGOs and the media. Once I have digested the report, I will be writing some more articles on this theme, with tips on how to turn a failing of your big competitors into an opening for you,

The post Trust the key to bridging the communication in supply chain partnerships appeared first on Inside Small Business.

PESTLE stands for:

• Political
• Economic
• Social
• Technological
• Legal
• Environmental.

In November, a LEGAL help for SMEs finally became law. It’s something that I have written and spoken about for years, so it’s very gratifying to see the final result of all that lobbying by SME advocates and organisations (such as the Australian Small Business and Family Enterprise Ombudsman).

At last, it is illegal to have unfair terms in a contract with a small supplier.

November 9, 2023, marks a significant shift in the Unfair Contract Terms (UCT) regime. The Treasury Laws Amendment (More Competition, Better Prices) Act 2022 introduced some critical changes:

• The definition of a ‘small business’ is widened
• Unfair Contract Terms will be illegal and will be met with stern penalties.

If you are a supplier to a larger business, there’s a chance that the contracts you have signed will now be illegal.  

If you’re running a business and buying from SMEs, you might be caught by these changes yourself. A ‘small business’ is defined as any entity with fewer than 100 employees or an annual turnover under $10 million.

So, what does this mean for your standard form contracts? They’re presumed to be under this umbrella unless proven otherwise.

Previously, if your contract had an unfair term, it was simply unenforceable—no harm, no foul, right? Not anymore. The new legislation introduces hefty fines just for including such terms in contracts. Companies could face penalties up to the greater of:

• $50 million,
• three times the benefit’s value, or
• 30 per cent of the company’s turnover when the contract was in place.

Individuals are not spared either, with potential fines up to $2.5 million.

What is Unfair?

It’s crucial to go through your contracts with a fine-tooth comb. That includes both the contracts with your customers and contracts with your suppliers.

Look for any terms that might be considered unfair. Here’s some pointers:

• Clauses that skew the balance of rights and obligations
• Clauses that are not necessary to protect legitimate interests
• Clauses that give one party some rights or benefits that the other party does not have.

An example, and one that I see often, is where buyer can terminate a contract anytime, for any reason, while the supplier must give notice. This kind of imbalance could now be a costly oversight.

These changes open the door for any SME or individual to take civil action if they’re on the receiving end of a UCT. With the Fair Work Commission potentially getting the authority to make orders regarding UCTs in ‘service contracts’, the world of supplier contracts has changed.

Of course, we must now wait and see what actually unfolds in the Courts as cases are brought before them. Regardless, all businesses must brace themselves for this regulatory change.

It’s about more than just the legals

Ensuring your contracts are fair and balanced isn’t just about legal compliance; it’s a matter of upholding your brand’s integrity. Ethical dealings and fair practices are always in vogue, and the cost of ignoring these new rules goes way beyond the hefty fines. Your reputation is also at risk.

Now, your attention to the “L” in the PESTLE analysis is as important as your entrepreneurial spirit. Consider this article a call to action: live up to your brand, embrace ethics, and ensure your contracts reflect that commitment. November 9, 2023 has already passed, so the time to review and adjust your contracts is now.

The post Unfair contracts are now officially illegal; do yours comply? appeared first on Inside Small Business.

Yes, there are huge opportunities available. For example, the Queensland Government will be spending up to $180 billion with SMEs in the lead-up to the 2032 Olympics. That’s an awful lot of low-hanging fruit!

But, before you rush in, you must understand that dealing with big buyers like Government is different. You may have to adjust to a whole new way of doing business. Understanding this at the outset will save you a lot of time and angst – and possibly money as well.

This post will point out six things need to think about before you pursue some of those Government $$.

1. Understand supply chains

The first concept that you need to understand is that you become a link in their “supply chain”. Governments have hundreds of thousands of suppliers. Each one, including your small business, has their own suppliers, forming a “supply chain”. Even if you are supplying directly you are still considered to be a part of the supply chain.

As with any chain, if one link breaks, the entire chain fails. The buyer get their required products or services so they can’t supply their customers, who in turn become very, very unhappy.

2. Don’t be the weak link

The scenario above illustrates the one, underlying principle that you need to understand if you’re going to be successful as a supplier to big buyers. They hate risk.

You must be able to demonstrate convincingly that your small business is not going to be that weak link. If you can do that, you will be well ahead of your competitor who hasn’t been able to give them the same level of comfort.

3. DIFOTQ

Your potential buyer is also worried that you won’t be able to supply on time, and whether you can supply the same product or service, to the same standard, every time.

All these concerns come together in an acronym: DIFOTQ – Delivered In Full, On Time, with Quality. The “Q” doesn’t mean the best available. It means fit for purpose and consistent, and this is how your larger competitors often win contracts. Their larger size and capacity allows them to supply consistently. It may be consistently lower quality than your small business can provide, but it is consistent, and they can deliver every time.

4. Your financial health

If a supplier collapses due to financial distress, the buyer’s supply chain will be interrupted. As well as the threat of non-supply, they have to find an alternative, reliable supplier. Consequently, many big buyers will ask you for your company’s past financials so they can assess its financial health.

5. Their financial policies

The odd thing about your potential big customer wanting to forensically examine your financials is that their payment policies sometimes seem to be designed to make your finances worse! Governments have previously figured prominently in the late-payer stakes, and they are by no means perfect.  However, many have now mandated shorter payment terms for SMEs.

6. Be prepared

Being a Government supplier can certainly be a game-changer, but before you get too excited, make sure you are prepared. They have requirements around environmental performance, ethics, and all sorts of other things.  Do your homework first, and the rewards are there to be had.

So, there are the first six items you must tick off before you start on your Government purchasing journey. It’s not hard, but it does require a little time and work. But the rewards can be well worth the effort. Where are you going to start?

The post Governments want to buy from you, but you must do these six things first appeared first on Inside Small Business.

The paragraph above is an exact copy of the opening paragraph of my LinkedIn article of October 14, 2015. I have simply inserted PwC instead of Volkswagen. (Most of you will remember when Volkswagen was caught out cheating on the tests that measure the greenhouse gas emission levels of some vehicles.) 

The article continues, “I read and write a lot about Corporate Social Responsibility. The Volkswagen, Enron and Lehman Brothers scandals are now part of corporate folklore. Another decade – another scandal.”

Well, we’re not quite one decade on from 2015, but we have seen more than our fair share of corporate (and government) scandals. It’s not just another decade, another scandal, but same decade, plenty more scandals!  Here’s a short list to begin with:

• Robodebt
• Sports rorts scandal
• Victorian Government Hotel Quarantine Inquiry
• Banking Royal Commission
• AMP’s financial services misconduct
• Rio Tinto’s Indigenous cultural heritage destruction
• Commonwealth Bank of Australia’s money-laundering scandal

But it’s not just international corporate giants and governments that are vulnerable – they just get the attention of the international media.

Every single one of us who owns a business – large or small – is just as vulnerable.

The gas bottle incident

In that article, I recounted the story of my visit to a gas supplier to collect some LPG gas bottles. I hadn’t been there before, so I had approached the building cautiously, looking for the correct entrance amongst a maze of ‘Safety’, ‘Caution’, ‘One Way’, ‘No Entry’, ‘Exit Only’ etc. signs. In the end, I just parked outside!

What I deduced from all these signs was:

• This was a high-danger workplace.
• I was not to smoke or use a mobile phone anywhere on the site.

As I walked to the office entrance, a young male employee exited from the Office door. He squatted down in the visitors’ car park, lit up a cigarette and started texting on his mobile phone.

Inside, once a customer service person appeared, I asked if she was aware that someone was outside smoking and using a mobile phone. She replied that, “It’s only in the carpark”.

As I’ve spent a lot of the past 25 years dealing with the safety regulations of large companies, I was a bit surprised.

Didn’t the signs say “No Smoking Permitted Anywhere On This Site”? Given the number of gas bottles that were clearly visible, I thought that this was a perfectly reasonable request. 

The message transmitted by all the signs was being completely overridden by the actions of the employee – and, worst of all, it seems that this was an acceptable practice.

The lesson I took away from that visit was that our brand is on show – always. The commitment to safety that was displayed with all the signs was clearly only skin deep. All the safety messages went completely out the door with the employee smoking and texting in the car park.

No, there wasn’t a Royal Commission into the gas bottle incident in 2015, but the parallels with the behaviour of PwC, Volkswagen, Australian Banks etc. are clear whatever size you are. 

Live up to your brand. 

Do what you say you will do. 

Ethics are important.

The post Brand perception vs reality: PwC, gas bottles, and the importance of ethics appeared first on Inside Small Business.

But in the age of technology and digitisation, there are even more surprising pitfalls to be wary of, like the world of emojis. Who would’ve thought a simple thumbs-up emoji could land a company in legal hot water?

The thumbs-up tale from Canada

Here’s a recent story from Canada that made me think. Their highest court, similar to our Supreme Court, recently dealt with a curious case. Two businesses had been working together for years. Their usual way of confirming contracts was simple: a chat, a photo of the signed agreement sent via text, and a confirmation reply. That reply was often a simple “ok” or “looks good.” But one day, instead of words, the response was a thumbs-up emoji.

Things went downhill when one business didn’t deliver on their agreement. The matter went to court, and the main point of contention was that thumbs-up emoji. Was it just a casual acknowledgment, or was it a binding confirmation of the contract?

The court took a modern approach, even consulting Dictionary.com for clarity on what the emoji means. In the end, they decided that in the context of the businesses’ history and the way they usually operated, the thumbs-up was as good as saying “ok.” It became clear that in the digital age, even emojis can have weighty legal implications.

Australia and the emoji puzzle

But what does this mean for businesses in Australia? Our legal system is quite similar to Canada’s. So, this case could conceivably influence future decisions here, too. In fact, Australian courts have already had to interpret emojis in other contexts. Emojis are no longer just fun icons we add to our messages. In the legal world, they’re starting to be seen as expressions of intent.

Navigating the emoji minefield

It’s a world where a wink emoji might mean more than just a playful gesture. Could it hint at a discount? Might a heart emoji indicate more than just liking something, perhaps suggesting a long-term commitment? Or could an angry emoji be interpreted as bullying or coercion? In this evolving landscape, it’s crucial for businesses to be careful about how they communicate, especially in formal contexts like contracts.

For many, the safest route might be to avoid using emojis in business communications altogether. But if you’re someone who loves adding that personal touch with a smiley face or thumbs-up, just be sure of its implications. And remember, while the digital world is embracing emojis, traditional legal documents in Australia still need those good old-fashioned signatures.

Final thoughts

The world of business is full of surprises. From unexpected personal challenges to new digital dilemmas, there’s always something new on the horizon. While technology offers incredible tools for communication, it’s also introducing new challenges. Emojis, for all their fun and efficiency, can now apparently carry real weight in the legal world.

For businesses keen on staying ahead, it’s essential to keep adapting, learning, and most importantly, understanding the evolving landscape. In the fast-paced digital realm, striking a balance is key. And when it comes to emojis in official communications, perhaps it’s best to think twice. After all, a picture (or emoji) is worth a thousand words – or in some cases, a binding contract.

The post Floods, fires…and emojis: they are all risks to your business appeared first on Inside Small Business.