Business is about relationships. One does not do business with numbers or organizations or firms. People are involved in the business. Hence business comes down to relationship – individual relationship. A relationship involves customers, vendors, suppliers, employee, employer etc.
For business relationships to grow and be productive, trust has to be developed first. It is the base of every connection. Trust is a positive emotion. And a firm belief in the reliability, truth and ability or strength of someone.
The movement a person is not trusted by a team, his chances of success within that group is diminished. One has to build and maintain trust in the business relationship. And is important for the owner and his organization’s success.
Trust is can be understood and influenced. Here are few situational factors that one can look into to increase trust level and that will have a positive outcome.
- Similarities: If the other person believes that you are like him, then he is more likely to trust.
- Mutual concern: Will they stand by you, and look for both’s interest.
- Interest alignment: Are you and your business client in the same boat? If yes, he will trust you.
- Capability: If you are competent to deliver what you have promised.
- Predictability: Are you predictable and do what you say.
- Communication: Constant, open and honest communication builds trust.
How to boost trust in vendors?
In a business cycle, there are ups and downs in cash flow. There are times when the company wishes to release vendor’s money. But since it faces cash crunch it is unable to pay its vendor.
To build trust in vendors it is better to call regular meetings and clear your cash flow. Let each vendor know how much and when will he be expecting payments. There are chances that few vendors will not agree. Let them know the mutual interests are in staying together.
How to boost trust in customer?
Building relations with the customer is to fulfill the promise made to him in due course of business. Better start with small contract. Deliver it on time. See that you work well. This develops mutual trust. Once you fulfill your promise you will be getting more contracts from him. Later on, you can take bigger and bigger contracts.
How to boost trust in employee?
Employees are the base of any business. Business culture should be such that it supports the employees. And looks after their interests. Management should set up reasonable expectation from the employee and this should be communicated to them.
This, in turn, makes the employees feel secure in their positions if they meet the given objectives. Management should make the employee feel secured.
By creating various opportunities for teamwork, group outing to reinforce the feeling of shared experience.
Trust in business is one of the components for a better relationship with the vendor, customer, and employee. It can be influenced by the leader. Hence a leader should understand the various component of trust building. And create a constructive environment.