As an entrepreneur you’re expected to display a super-human amount of confidence and share your bold ideas without any sense of self-doubt, right?
But what happens when that entrepreneurial confidence you’ve worked so hard to cultivate starts to create the sense you’re less than transparent?
Being seen as an entrepreneur or business owner who lacks transparency can destroy your success. Transparency is essential, whether you’re looking for investors, your hope is to sell shares of your company, or your just want to appeal to potential customers.
Below are some of the top reasons you should always make sure you’re transparent and embracing it as a key company value.
Word Spreads Among Investors
Whether you’re looking for angel investors or you’re hoping to initially start trading on the penny stock markets, which is where a lot of startups such as biotech companies begin, you must be transparent. Not only in a regulatory sense but because investors may start talking to each other.
If you don’t seem like you’re fully transparent with even one investor, they may talk to other people which can dash your hopes of startup funding.
If you’re hoping to trade in the penny stock market, you may be tempted to fudge things a bit since the requirements are much less rigorous than what you would face with being listed on the major exchanges, but doing so can lead to fines, jail time, and a major hit to your public image that you may never recover from…
Your Customers Require It
If your potential customers don’t feel like you’re being forthcoming, they’re going to look elsewhere for information about your company. That leads to a loss of control over your marketing and your message, which can be disastrous.
With the availability of so much information right at the fingertips of your customers, it’s not as if they aren’t going to find information about your business from somewhere, so you want to make sure you have the upper hand here, and you’re the one framing it in a favorable way and presenting it to them.
Also, with such a high level of competition across every industry, one of the easiest ways to set yourself apart is to focus on transparency.
It’s something you can highlight to set yourself apart and make yourself distinctive in the eyes of your target audience.
Press Attention and Publicity
Transparent companies are in favor right now when it comes to journalists and media outlets. They love a story of a company that’s focusing on transparency, so highlighting this concept as an entrepreneur can be a good way to get coveted publicity.
It can also add a human interest element to your story that you might otherwise be looking for.
Your Employees Will Appreciate It
As a final note, when you’re an entrepreneur building a business, and you put a lot of attention on being transparent, it’s not just going to have external benefits. It’s also something that’s going to be beneficial regarding company morale and how your employees see you.
At a time when startups are struggling to retain talented employees, creating a culture of transparency can be just what you need to keep your best employees onboard.