Week 8: The Power of Trust in Transactions
The power of trust in a transaction can be a bond between two companies that can carry on for centuries. Trust is the foundation of what relationships are built on whether if it is a marital relationship, Spiritual relationship, or business relationship. Let’s define what trust means. According to Webster-Merriam Dictionary, trust is “belief that someone or something is reliable, good, honest, effective, etc.: an arrangement in which someone’s property or money is legally held or managed by someone else or by an organization (such as a bank) for usually a set period of time.: an organization that results from the creation of a trust.” All of these words listed within the definition are positive and what you should desire in a business partner.
According to Schussler (1994) “Trust is critical to potential investors because they’re buying you as well as what you have to offer.” This is a clear and meaningful statement, trust within a business relationship makes the transaction smooth and easy instead of unsure and stressful. The relationship within the process is key to future deals whether you succeed or not. As I read more into the chapter Schussler also states “If you have conducted your affairs in an honest manner, you will always be able to look your investors in the eye even if you fail.” It seems that if this venture fails because of the relationship that had been built, other future deals could still be made in spite of the past, they would just approach the deal more strategically.
As I further researched how successful companies grow and compete in the world, I can see that companies have to build trusting relationship with each other and their customer base. According to Keating (2012) Netflix as a company that provides (DVD’s) had to trust that their customers would mail back the product in order to continuously make a profit. This process would have driven me crazy, simply because of the way I view the world. I have seen a lot of bad in society, so therefore my trust is not as accepting as the leaders in the Netflix organization.
Finally, if you don’t allow yourself to trust or even give an organization the benefit of the doubt you are stunting your growth in building your business. As an organization, you should always do your due diligence and research the company that you are making the transaction with. Checking with the past deals that another company has made, could be a clue of how the transaction would go.
Schussler, Steven (1994). It’s A Jungle In There. New York, NY: Sterling Publishing Co.,
Keating,Caitlin (2012). retrieved from http://fortune.com/2012/01/27/why-trust-matters-so-much-in-business/