The days of covert business secrecy are over. They went out of the door when the age of hacking appeared. If you don’t believe that just ask the Federal government.
As a startup or small to medium sized business, the option of pouring millions into intergrated IT is not a viable one. Furthermore, if your business is linked to any social media, some things may slip out inadvertently.
So instead of fighting against business transparency, why not use it as a marketing tool.
Several companies have followed this path with much success. In fact, the “nothing to hide” approach is highly respected among customers, employees, business partners and investors.
It builds trust. When people know what to expect from you, they are more likely to have confidence in your business’s success. Here’s a breakdown of the first two entities that you will get added accollades from with a transparent plan—employees and customers.
Transparency and Your Employees
The era of an employee staying with a particular company for decades even a lifetime is ancient history. Some of the reason lies in the lifestyle of Gen Xers and Millenials. Yet, much of the issue rests with the culture of the times. Most emplyees want to know what is going on with their business, instead of just being a silent cog.
WHAT TO DO
Don’t plan long boring meetings. Instead use internal business media and short interactive meetings. Be open and honest about goals, successes, failures and revenue. Remember transparency not only improves confidence; it also shows that you want to treat everyone fairly. Employees who feel they are treated well work harder and are less enticed to leave.
Transparency and Your Customers
If customers are the lifeblood of your business, then why keep them out of the loop? By doing just the opposite you can build your brand and encourage loyal customers.
WHAT TO DO
Are your customers desiring a new product or service from you that you simply can not offer? Instead of giving a generic “we’re working on it” answer, why not explain why it isn’t viable for you to do it and offer alternatives. If it is something you can do in the future why not offer status reports on your progress to make their request a reality.
Transparency and Business Partners
When money is at stake, honest communication is paramount. Some companies have burned bridges by keeping their business partners in the dark concerning sales, revenues, upcoming products/services and the like. Business partnerships are delicate entities, especially when they involve small and medium sized businesses. Transparency is a bonding agent that cements these relationships.
WHAT TO DO
Share information with your business partners. Remember that they may be able to assist or advise you. The more information you share between each other the more resources and ideas you will be able to generate to improve both of your businesses.
Transparency and Investors
Most investors plan to avoid companies that hide information. In fact, investors often perform deep probes into businesses before shelling out cash.
WHAT TO DO
When approaching an investor, fully disclose your business after you have them sign a non-disclosure agreement. Never make the number “look” better than they are and openly state why your business needs their assistance. Too often business owners try to sell the thought of investing in their business. Remember, an investor is giving you an audience because they are interested making more money. Being transparent about how your business is setup to do that is key to getting their agreement.
STRADA Capital specializes in helping entrepreneurs and businesses acquire the essential capital they need to launch their business to the next level. Whether your company needs a loan to expand, equipment leasing, receivables financing or working capital, STRADA Capital has you covered. A partnership with STRADA Capital means you get to focus on growing your business without the worry of sufficient funding. Realizing your business’ full potential is just an email or phone call away.