Trust is the ultimate path to a defensible business

The four elements of business trust

  1. Founder Trust: This is the trust and bond between the founders of the business. Founders need to trust each other to delegate tasks and focus on what each can achieve with their skill set. My Co-Founder Domenic and I met on a business transaction two years ago. We did a deal worth millions of dollars built on trust and mutual understanding. We didn’t even have a signed contract together when we started negotiating that deal — but we trusted each other. We put into place a contract after several weeks of negotiation, as a matter of formality. Trust was established early on and that lead to us building a business together twelve months later.
  2. Marketplace Trust: We’re a B2B business selling a service to other real estate professionals. Big industries can have small circles. People speak to each other, they ask about you. They want to know as much about your credibility before they even consider buying from you. Marketplace trust is essential. It’s what your future clients think about you and say about you behind your back. If they don’t trust you today, it will be very difficult to change their mind in the future when you want to convert them from prospects to customers.
  3. Customer Trust: This is the key driver behind sales revenue. Customers will work with you and reward you if you can help them in the immediate term. But they will stay with you and advocate your brand if you can go further and build a long term relationship based on trust. This helps with every single financial metric — revenue growth, long term customer value, cost of acquisition, churn, return on investment, cost of acquisition etc. Our focus is on earning our customers trust but more importantly, maintaining that trust in the future.
  4. Investor Trust: Many businesses fallout with their investors at some point. Some have even told us about the hostile relationship they have with those who have backed them. I worked as a stock market analyst for almost a decade and often remember CEOs of top 100 companies telling me how much they despised their shareholders. We want to avoid that at any cost. We understand that our investors (VC or institutional) are custodians themselves, who have been entrusted by other investors to manage their money. They have pressure and bills to pay, just as we do. We’re in this together. As a business, we aspire to build deep and meaningful relationships with our investors, earning their trust so that they may add the best value possible to our business.

Trust is the ultimate defensibility

Monthly recurring trust (MRT)

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