All functional relationships, business or otherwise, are built on a foundation of trust and confidence that is shared between two ‘transparent’ parties.

Lord Sugar, renowned entrepreneur and star of The Apprentice, recently shared his tips for business owners on business data site Company Check.

“I’ve never pretended to be anything other than who I am. And that’s important in business” says Sugar in his post.

“I’ve invested in a lot of businesses over the years and one of the things I expect from them is that they are transparent about what’s happening, and what’s going to happen in the future.

“Whether you’re investing in a business, or working day to day with colleagues and suppliers,it’s important that you expect transparency from them in the same way. If they’re not going to be able to deliver for any reason, you should expect to know about it now. In return, you should be open with them about the strategy for the business and the role they play in it.”

No matter what you think of him as a TV personality (and he says himself, he is portrayed as a hard task master!), Lord Sugar’s point is an important one. Transparency in business is the practice of being open and honest about business matters, including growth, finances and aspirations. It promotes successful partnerships that make strategic business decisions and enable both companies to grow - and it’s something all business people should be striving for.

After all, it takes time to twist the truth and even longer to decode it. No one wants to work with or for someone they don’t feel they can trust. A new business partnership will be more productive if those involved are honest about finances, business progress and plans for the future right from the start, instead of revealing this important information later down the line.

So how can you generate these ‘transparent relationships’ in your business activity?

Be authentic

Be an authentic individual and attract transparency.

Business owners who are guided by their initial vision and remain true to their principles when making important decisions are likely to meet like-minded individuals, be they customers, investors or suppliers, who will reciprocate this transparency and generate productive business relationships.

Talk often

Knowledge breeds successful strategy and we learn best when we talk; think how much you found out about that ‘old friend’ during your recent catch-up!

Busy working schedules mean that talking with colleagues and business partners about their day-to-day activity or progress is often forgotten, when it should be high on your to do list.

By talking openly about a company’s activity and progress, business owners will encourage their employees, suppliers and even competitors to do the same. A conversation between two ‘transparent’ parties on topics such as delivery agreements and payment dates will prevent potential issues in a working relationship before they arise; it could also inspire a new business plan!

Know your numbers, but know theirs better

Numbers are the foundation of business and so it’s important to know as much as possible about the finances involved in every business partnership. How else can companies make informed decisions that are based on previous success or failure, and plan an effective strategy for the future?

Financial transparency within a firm can be achieved by scheduling a regular slot to review the company finances and record any key trends or stand out results, which should then be evaluated and shared with colleagues at a later date to promote an informed and motivated workforce.

However it’s equally, if not more, important to have this information about your business partners because their financial status will directly influence your business. If your supplier or distributor is doing well then your company should also be benefitting: if your numbers don’t show this, then you need to find out why.

Financial data sites such as Company Check allow firms to quickly and easily perform due diligence checks (the process of acquiring this financial information) to gain an understanding and ‘transparent view’ of the financial landscape surrounding their business. Details such as the credit rating of a supplier or client enable strategic business decisions to be made and highlight potential future issues before they can affect the working relationship.

Transparency is so important in business. It starts with you.

To read Lord Sugar’s business advice in full, see here.

 

By Alastair Campbell, founder of Company Check.


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