Edition 489 – Loose Lips
Watch any television drama or movie set in the Second World War in the United Kingdom, and invariably, you’ll see a sign that says “Loose Lips, Sink Ships”. It’s a term my mother-in-law, who lived through the London Blitz, would drop from time to time. They were dark days, 80 plus years ago, and with espionage running high, you didn’t know sometimes, whether someone you spoke with, was on the same side.
Loose lips is a great term that I’d encourage small and family business owners to take a moment to reflect upon. Particularly, when our egos are running high, and we’re letting our emotions get the better of us.
What are you saying in your business negotiations, that lets too much information out, about yourself, your team or your business?
What are you saying, in front of your staff, about the worries in your business, that creates uncertainty for them…..and potentially vacancies for you?
Too many business owners brag about their achievements in business, to the point where they let just a few too many people in on the intel.
Too many business owners treat colleagues in the industry like close friends, rather than business acquaintances. Unless you’re in a formal relationship with them, quite often, they’re suppliers, customers or competitors. If that’s the case, what are you divulging, that might expose your business, unknowingly, to a threat that only you, yourself, have created?
Over the years, I’ve observed business owners:
- Bragging about how much money they make.
- Talking with supposed colleagues about product ideas, only to see those colleague monetise those ideas, simply by virtue of getting onto it first.
- Talking big at industry events, and saying just a bit too much about what they do, and how they go about doing it.
- Divulging financial information to key staff, only for those individuals to use it against the business owner at a later date.
This last example was in my own former business. After a partnership change in the mid-noughties, we gathered in our key people, and let them in on some of the business numbers, all in the interests of engaging them in our future journey together. Except, we went about it the wrong way, and in the process, what transpired was a co-ordinated campaign by two individuals to pilfer clients from our business, going against both their employment agreements and any sense of ethics or morals, by setting up shop in opposition to us, all whilst still on our payroll. The cost – at least a quarter of a million dollars!
Loose lips!
Next time, you’re engaging in contract negotiations, or discussions with suppliers, or talking about the future with key employees, take a moment to reflect on the information that you are passing on. Is it relevant to the context of the discussion? Or are you gloating, and thus opening the kimono just that bit too much, to the point where we all can see what’s on show?
This Week’s Tip
“Tighten up any agreements that you might have with employees or subcontractors, that preserves the integrity of your business information,
and your intellectual property.”