Why Honesty is Important to Any Business
Some entrepreneurs start their businesses with the erroneous mindset that survival and success are predicated on adopting predatory practices.
Honesty is often viewed as a handicap because it doesn’t involve exploitation and taking the back door around obstacles. Yet, a cursory look at successful businesses shows that honesty is the most cost-effective means of adding value to your business. In today’s cutthroat business landscape, a good reputation gives your business a unique advantage above the rest.
Honesty is something that nearly every client values more than any other aspect of your business, including the quality of your product and service. As they always say, ‘honesty is the best policy.’
Why Honesty Matters When Selling a Business
When you make the decision to sell your business, you’re not just selling your assets and knowledge database, but you’re also passing on your reputation to the buyer. No one wants to inherit a tarnished reputation, least of all, any prospective buyer who hopes to derive an income from your business.
If you’ve been operating by honest practices, then your value proposition will reflect that.
Your honesty is revealed by direct and indirect means. When you file your taxes, make commitments to your customers, and meet your corporate responsibilities, you communicate honesty.
Failing to meet your responsibilities creates a climate of mistrust and could even put you at odds with regulatory bodies.
Advantage of Honesty
Honest business practices inspire your employees and clients to respect your company goals. It builds a foundation of trust between employees, competitors, and other individuals and entities. When employers deal with their employees honestly, it motivates them to propel the business forward.
It also attracts investment and improves your outlook among creditors – which is important if you or the prospective buyer of your business seeks funding.
It Builds Trust with Clients
Businesses spend years building loyalty and trust among their target audience, and the key method of doing that is honesty. When customers realize that a business does things the ‘ethical’ way and cares about building a product that they stand behind, they tend to reward that business.
Take a look at the most successful businesses in New Zealand, and you’ll find out that honesty is common to them all.
People are looking for businesses that don’t just sell products and services but contribute to bringing about meaningful change. Think of brands like Trademe, Fisher & Paykel, and Air New Zealand – each of these companies has created something that stands for quality, integrity, and other inspirational values that keep clients coming back for more.
The practice of doing the right thing should become ingrained into your work culture so that your employees and build a virtuous reputation for your business that will live on for years to come.
To wrap up, a business known for its honest practices would almost always command the respect of prospective buyers who will be more than happy to buy you out at a price you decide.
Ready to sell your business? Feel free to reach out to me for a free consultation session. Click here to learn more.