It takes time and effort, but developing trust in business relationships is a valuable investment in your business reputation and success. By consistently demonstrating trust, you can build strong and lasting relationships with customers and partners.
Why is Trust Important?
Trust is the foundation of any successful business relationship as it creates a positive and collaborative environment to enable growth, innovation, and success. When two parties trust each other, they are more likely to work together effectively, communicate openly and resolve conflicts quickly and easily. When customers and partners trust a business, they are more likely to purchase its products or service and recommend it to others. And when a company is known for being trustworthy, it can attract more customers and partners, leading to increased growth and success.
How to Develop Trust
There’s no two ways about it; building trust takes time. And there is no one “right” way to do it. It requires the development of insight and humility and must be two-sided. If there is an issue or difference of opinion, the two parties must meet in the middle with terms they can both agree on. Here are several ways business owners can build trust:
- Consistency. Deliver on promises, provide high-quality products or services, and maintain open lines of communication.
- Transparency. Communicate business practices, policies and procedures. Share information about pricing, delivery times, and other relevant details.
- Responsiveness. Answer quickly, and effectively, inquiries, concerns, and complaints. Show that you value the other party.
- Honesty. Be straightforward about your strengths and weaknesses. Admit mistakes and take steps to correct them.
- Personalization. Using the other party’s name, offering customized products or service, and taking a personal interest in their needs and preferences goes a long way towards developing great connections.
- Social proof. Customer reviews and testimonials can help build trust with potential customers. Encourage customers to leave reviews and share their positive experiences on social media.
- Professionalism. A professional demeanor and appearance, proper grammar and spelling in communications, and timely follow-up can create a positive impression.
Trust Can Transform
In his book, “The SPEED of Trust,” author Stephen M. R. Covey, son of the late Stephen R. Covey, argues that developing trust can have a transformative effect on the way business is done. Here are some ways he suggests how developing trust can change business relationships:
- Speed. When trust exists between two parties, decisions can be made more quickly, and work completed more efficiently. This is because the parties don’t need to spend time and resources on verifying each other’s intentions and actions.
- Cost. There is less need for legal contracts and other forms of protection, which can be expensive and time-consuming to develop and enforce.
- Innovation. By creating a safe space, individuals can take risks and explore new ideas. They’ll feel confident that their colleagues or partners have their best interests in mind and won’t take advantage of their vulnerability.
- Collaboration. This encourages individuals to work together more effectively because they feel confident their colleagues or partners will support them and won’t engage in unethical behavior.
- Reputation. A company’s good reputation can attract new customers, partners and high-quality employees. A trust-worthy company is more likely to be viewed positively by stakeholders.
Want to learn how to build trusted referrals? Read our post “How to Build Powerful Referrals.”
Be Intentional About Trust
Trust doesn’t happen by accident. Nor does it come naturally. Intentionality needs to be a goal in developing any relationship because it demonstrates a genuine interest and commitment to building a business relationship based on trust, respect and mutual benefit.
- Be intentional about building rapport. Listen actively and show a genuine interest in the other party’s goals, challenges and aspirations. Get to know them on a personal as well as business level.
- Demonstrate a commitment to honesty, transparency and accountability. Follow through on commitments, admit mistakes, and take responsibility for your actions.
- Develop a mutual understanding by fostering open and honest communication. Seek feedback, ask questions, and be receptive to different perspectives and ideas.
- Encourage collaboration by promoting a culture of inclusivity and teamwork. Value the contributions of others, seek out diverse viewpoints, and work together towards shared goals.
- Foster innovation by encouraging others to take risks and explore new ideas. Create a safe space for experimentation, encourage creativity, and reward innovation.
What Can Happen if You Don’t Have Trust?
A lack of trust in a business relationship can have significant negative consequences for both the relationship and the business’ overall success. It can lead to poor and guarded communication, misalignment of goals and priorities, hesitance to share information or resources, increased conflict, negative emotions, loss of business opportunities, and decreased employee engagement and retention.
Trust is fragile and can be easily broken. Be careful not to break trust once you have it.
AEG Helps Businesses Grow through Trusted Relationships
The entire focus of the Association for Enterprise Growth is to create personal and business growth through trusted relationships, which makes us different than other business-related organizations. We connect business owners and leaders with other members who are centers of influence in order to share experience and foster growth. We also connect members with elite CEO advisors committed to sharing their resources, knowledge and connections. Our goal is to help you grow your business, exit on your own terms, and build personal wealth.
We encourage you to learn more about AEG and become a member. Contact us today at info@enterprisegrowth.org.