When there is a customer crisis, at best, upset customers will take their business elsewhere, tell their friends, blog about it and generally damage your reputation. At worst they will sue you and cost serious money. The litigation may even be enough to risk the future of the company, or catch the attention of the media with similarly catastrophic results.

A study in America found that the likelihood of doctors being sued was inversely proportional to the way they treated their patients. It found that competent doctors who treated their patients with disdain, got sued more frequently than incompetent doctors that killed their patients. This was provided they were pleasant with the patients and their relatives and said sorry. Saying sorry was particularly significant.

We all believe that customer service is important, so I'm taking it as read that we make every effort to deliver on that in the first place. If not, it might be time to move on to a job where you will fit in better. But all too often we don’t have a well thought out way of dealing with the inevitable crises that arise from time to time. So here's my ABC for dealing with them:

Small Giants by Bo Burlingham poses big challenges to those who assume that by definition growth is a good thing.

Consultants, accountants, bankers and business schools all tell us that thriving companies grow their profits and revenues year-on-year (and if you aren’t doing it then you feel like you must be failing!).

But bigger is not necessarily better!

Burlingham looks at businesses that choose ‘the road less travelled’… they reject the pressures of endless growth and instead they focus on being the best at what they do, creating a great workplace, legendary customer service, and a sense of community (both locally in the workplace).

Six attributes of these ‘businesses with mojo’ are:

Those of you who have been following this blog will know that i've been awaiting feedback from Bank 2 on my application for Enterprise Finance Guarantee lending.

After Bank 1's rejection, I was pretty much expecting another 'no'.... which is exactly what i've got!

Two reasons were quoted - firstly that it's still early days in terms of sales (despite the fact we've just got in to a big supermarket) and the second - lack of security. Their response on the EFG aspect is very telling...what they told me is that because the scheme involves many restrictions, they are now not looking to lend any funds under the scheme, although they have done in the past.

I've been advised to come back when I have confirmed orders (fair enough, although I already have email confirmation) and alternative security to offer.

I've been at Music 4.5 today, an event in London focusing on start-up businesses in the music industry. One of most interesting sessions took place earlier this afternoon when a group of brave entrepreneurs took to the stage to present their businesses. Nothing new I here you say. But this group of 'investors' weren't Peter Jones, Deborah Meaden or Duncan Bannatyne; they were a bunch of teenagers!

Organised by entrepreneur Julia Shalet, the five 16-18 year olds are part of the Digital Youth Project, an initiative which connects young people with technology businesses.

I've seen a few pitching sessions in my time and most of the entrepreneurs taking part have been pretty nervous but this lot looked particularly scared as they presented their online music ventures to a group made up of their exact target market.

Just had a long conversation with Bank 1, who have declined my EFG loan application for the following reasons...

- I need to match any lending with the same amount of my own funds

- the business is forecast to make a loss in year 1

Oh how frustrating...I put together a realistic cash flow forecast showing the business making a loss in year 1, breaking even in year 2, and making a profit in year 3. But what the bank says is that because the business won't be making a profit straight away, the debt is not serviceable. I guess that's true in the short term - in effect for the next six months repayments will come from the loan funds, but surely in the vast majority of cases no business makes a profit in the first few months of trading. And in our case, the extra expenditure in the next six months is to get stock in place to fulfil orders from a large retailer.

As for the matched funding thing, it's just one more barrier for those with a good strong growing business who have exhausted their own funds.

So, where do we go from here?

In the old days life was fairly simple. You had a place of work; which probably had a desk and all the essential office equipment: desktop computer, phone, calculator, Spice Girls calendar, etc. However, roll forward a few years and its amazing how that model has changed. Thanks to technology and a certain amount of liberalisation, most people can work anywhere.

I am one of those people. Armed with my laptop, 3G stick and mobile phone I tend to work wherever and whenever it suits, on the train, in the office or at home.

However there is a disadvantage to this nomadic lifestyle; keeping everything in sync can be difficult. Having a process is essential otherwise things fall through the gaps, and quickly.

It's been a busy couple of months here at Bubble HQ...we've just launched our brand new Fairtrade and natural liquid soap range - a world first - and we're right in the middle of Fairtrade Fortnight!

Having successfully 'bootstrapped' these last few months, rather helped by winning two business awards with cash prizes and some support from our bank, we're now on a serious funding mission....

Why?

We had some great news last week...verbal confirmation that one of the supermarkets wants to launch our products later this year! This should have been a moment of huge celebration - and it was for about half an hour - until I started to think about the practicalities. Hmmm. A 12 week lead time AND proforma terms for some of our materials + long payment terms expected by supermarket = CASHFLOW NIGHTMARE!

So...time to get the business plan updated, and resume our quest for EFG funding. Here's our progress so far...

Bank 1 - on the positive, they're very willing to consider it. But here's the catch....

Bank - what security can you offer?

Me - ummm - none sadly - which is why i'd like to apply under the EFG scheme

Business ethics frequently remain as just airy ideals, trotted out insincerely at interviews or at company training sessions, or as unnoticed platitudes in glossy corporate literature.

These days it is increasingly common for pundits, from academic researchers through to organisational development consultants, to call for a greater emphasis on  business ethics - but there is a general vagueness about how they can be successfully operationalised.

A typical example of a corporate mission statement which ends up appealing to no-one because it tries to reach out in a -specific way to everyone would be: "We are a dynamic and progressive organisation which aims to be best in the field and to deliver exceptional customer service and value for money."

There is an implicit rallying call to excellence and to integrity but there is a complete lack of authentic resonance in vacuous statements such as these, which sadly decorate many a business plan and annual statement.

No, I’m not referring to the next leg of my journey – to Japan to meet with some of our battery collaborators – but to our excellent visit to electric vehicle services company Better Place in Palo Alto. We met with five of their executives, including Karen Alter (VP, Marketing) and Hugh McDermott (Global Utilities and Energy).

A video interview I recorded with Info Group UK at the Technology for Marketing and Advertising exhibition and conference.