Opinion: The importance of building trust as a startup

Stephanie Staggs

In the fast-paced world of business, where innovation and agility are paramount, it can be hard for new business owners to know where to focus their efforts. After all, there is a nearly inexhaustible list of priorities demanding their attention. This can include increasing sales, managing a reasonable debt-to-equity ratio, achieving key performance indicators, and working toward a five-year strategic plan. However, out of all of these metrics, what should a startup focus on? I argue trust is the key.

In a BrightLocal Consumer Review Survey, 82% of consumers read online reviews for local businesses, with 52% of 18- to 54-year-olds saying they always read reviews. With more people turning to the internet to find local businesses, company owners have a tremendous opportunity to get in front of potential customers with the right message. According to local search ranking factors collected by SEO software company Moz, reviews have a 15% chance of influencing your position in local search results.

Racheal “Dami” Odunewu is the CEO of Dami and Purpose Connect and is a leader in the nonprofit SCORE, which specializes in helping businesses win. After six years in business, she still agrees trust is king.

“Trust is practically the lifeblood of a startup. For Purpose Connect, we have to build trust with prospective investors and clients – and when you don’t really have any way of demonstrating massive success yet, you hope that people will at least get a glimpse of what you’re working to accomplish and that they trust you enough to buy into your idea,” said Odunewu. “Follow-through is the ‘how.’ No matter how new or small a business is, it is important to do what you promise to do.”

Nathanael Toms is the owner of the Mr. Electric of SWMO franchise and serves on the Better Business Bureau Advisory Board. He is a master electrician and has been in business for almost two decades. He agrees with Odunewu that client trust is necessary.

“Our clients’ trust has been key to our success. It has led to ongoing business, positive reviews and valuable referrals, which have all contributed to our expansion. This trust also empowers our team to consistently deliver high-quality service and maintain our strong reputation,” Toms said. “Trust is built through sustained effort and dedication to quality.”

Building a business is a lot like building a house. Every business needs cash flow (the floor), to manage assets and liabilities well (the walls), and to protect it in case of a disaster (the roof). In this analogy, trust is the bedrock. If trust is ever lost or cracked, it can be detrimental and expensive to fix it. In some cases, it isn’t possible to redeem it.

Layne Hunton is the owner of Throughline Architecture LLC and the president of AIA Springfield. He understands how to build trust.

“The best way to build trust is fortunately really easy. It doesn’t require complicated game theory or Machiavellian tactics. It’s treating everyone with humility, respect, and transparency,” Hunton said. “If you’re starting a new business, and you don’t have a deep war chest yet, go 110% in on every client and every deal, spend too much time and too much effort and justify it as sweat equity in marketing. Because once you knock it out of the park, you’ll have some great initial references that will speak very highly of you and your brand.”

If we looked at a balance sheet, I would place trust as an intangible object under the assets column. Much like goodwill, it should be maintained and nurtured so it can grow. When you have a culture of trust in your firm, it echoes throughout the company and can be seen by everyone.

Trust is not just a means to an end; it’s an enduring asset that can propel a startup to long-term success.

Startups that prioritize building and maintaining trust will likely see stronger customer loyalty, more fruitful partnerships and a more dedicated workforce. Moreover, in times of crisis or uncertainty, a foundation of trust can be the difference between weathering the storm and sinking under pressure.

In the competitive world of startups, where resources are often limited, trust becomes a powerful and cost-effective tool. It’s the invisible currency that can unlock doors, foster relationships and ultimately lead to sustainable growth and success. For any startup aiming to make a mark, building trust isn’t just important – it’s essential.

Stephanie Staggs is the owner of Staggs Financial Services LLC and previously was the Springfield region executive for the Better Business Bureau. She can be reached at stephanie_staggs@glic.com.