The entrepreneurial journey is often a tough one, with challenges ranging from external regulators to internal issues like employee retention. To overcome these obstacles entrepreneurs need to possess certain skills that may not always be associated with their ‘type’.
They must know how to build trust. This is essential for any entrepreneur trying to introduce new concepts and ideas into a crowded marketplace and convince strangers to give them money for something that may or may not work.
In this case, trust has a similar meaning to value – what value does your word, product, name or brand have to me. This is why bigger brands charge more for the same type of products – we’re willing to pay more for Nike because we trust the brand.
Customers, investors and everyone else in this world is willing to pay more if they trust in the value that the brand or entrepreneur brings to the table. We value people and companies as well as products and services by the trust they manage to build with us.
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Trust does not mean owning everything
A common misconception is that to build trust, startups need to own the entire process and real estate associated with their product.
There are numerous examples of startups that successfully enter and transform an industry without ever owning much of the assets that make up their business. These are usually tech companies and there are many well-known examples like Grab and other successfully local tech giants.
These unicorn startups are able to capture value without owning the real estate or capital-intensive products needed for these services. Like Grab does not own all the cars and AirBnB does not own rooms and houses for rent. A major industry moving towards this model of adding value through trust is the fintech industry – many of these startups are looking to become trusted go-betweens for money transfer and much more.
Trust does not last forever
A common misconception by some large brands is that trust built over a number of years has a very long shelf life. However, that really is not the case. Great entrepreneurs know this.
They trust in their business, and in the voice of the market to help them discover how they can continue to provide value to their customers and investors. By having the right culture and mindset, entrepreneurs are able to maintain and grow trust in their brand throughout the life of the company.
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This is crucial from a business standpoint, as the longer the businesses maintain trust and provide value – the more likely they will succeed.