There is no track record for a new business when it initially starts trading. As a result, prospective buyers have no choice but to rely on marketing materials to make their purchasing decisions. Financial firms lack the necessary accounts to support their lending choices. Additionally, vendors may be cautious to extend credit to a business with no credit history.
So, how can you go from a corporation with no reputation to one that is regarded as trustworthy? You can’t, since building trust takes time. These basic tactics, on the other hand, can help you develop corporate credibility and overcome the early trust barriers.
Highland Opportunities prepared a list of top 5 recommended steps to establish credibility as a start-up:
- Create a Polished Business Plan
- Create a Solid Financial Starting Position
- Set Up a Professional Website
- Create a Social Media Presence
- Know What the Next Steps Are
Create a Polished Business Plan
Lenders, vendors, and investors will be reassured by a well-presented business plan that includes financial estimates. An abridged business plan may be useful to potential clients in particular industries. For example, a roadmap for the development of IT products could provide reassurance to early adopters. A well-thought-out and presented business plan will serve as a vital instrument for establishing credibility in the early stages of a company in all circumstances.
Create a Solid Financial Starting Position
The many start-up failures will be the first issue that people will be concerned about when starting a new firm. Lenders and vendors will be seeking for reassurance in the beginning balance sheet because many businesses fail owing to a lack of capital. Customers that purchase a low-cost item will not be concerned about their financial security. Financial stability may be a problem if the sale entails a long-term contract of any kind.
The sort of business will determine the strength of the initial balance sheet required for believability. Having enough money to cover startup expenditures and short-term working capital requirements, on the other hand, will address a lot of worries concerning financial stability. If the initial capital is equity rather than short-term loans, the balance sheet will be strengthened even more.
Set Up a Professional Website
The corporate website is one of the first things customers look at when evaluating a firm. As a result, setting up a professional website with a custom domain is recommended. Set up genuine business email addresses as well, because an @gmail.com is the epitome of amateurism. It’s best to hire a web developer if you don’t have the technical know-how to create a business website. The expense of developing a simple business website is not exorbitant, and a professional online presence will make a great first impression.
Create a Social Media Presence
It’s never too early to start using social media to promote your startup. You can use social media to generate pre-launch buzz for a new enterprise and begin reaching out to potential clients and other contacts in your niche. A start-early up’s social media presence also serves as additional proof of its professionalism and potential endurance. If people talk about your brand before you make your first sale, you’ve already increased its credibility.
Know What the Next Steps Are
Asking yourself questions that other people will ask is the best way to develop credibility. Why should a vendor trust your organization to pay their account on time, for example? Why should a consumer take the chance of signing a 12-month support contract with your company? How do you assuage concerns that your company won’t be around in six months? Then, for each of these potentially difficult inquiries, address the objection in marketing materials and/or have backup proof ready if possible.