GREAT 167 IDEA: Tell the Truth

“Lies have short legs,” my late mother-in-law, Jean Applegate, would often say. “They will always come back to bite you in the butt.”

I loved the wisdom she imparted in her colorful, earthy, Texas twang. Telling the truth is critical to personal and business success. While you may be tempted to hype sales figures or inflate projections, don't. These little untruths will come back to bite you.

Convincing yourself that things are great when they are really bad always backfires. Stand up to your problems and face them head-on.

Successful businesspeople readily admit they need help. They acknowledge their mistakes and change direction, no matter how embarrassed or upset they may be. They base decisions on fact, not fiction, and take responsibility for their actions.

Telling your employees the truth shows you care enough about them to share both the good and bad news. Don't keep bad news a secret. Your employees will eventually learn the truth and will feel betrayed by your silence. If you are facing a cash flow crunch or major crisis, rally the troops around you and work together to turn things around.

Being honest with customers and suppliers is critical to building trust. If you screw up, be quick to admit it and remedy the situation. Making excuses, pointing fingers, and shifting blame gets you nowhere. Customers appreciate dealing with a company that admits it's not perfect and quickly solves problems.

Deal with your vendors in an open and honest manner. If sales are slow and you know you won't need as many cardboard boxes, plastic bags, or fabric, give your suppliers a heads-up. They will appreciate your candor and, in some cases, may extend payment terms.

Our clients appreciate my straightforward approach. There have been times when, after signing a contract, I realize that it was a mistake. Depending on the contract, you can usually negotiate a graceful exit. You'll gain points by suggesting a replacement and making an introduction.