Owning or operating a start-up is not an easy job. It has never been. You need an excellent product/service or goal, amazing people to support you, investors' approval, suppliers' support, and customer attention. One of the toughest nuts to crack is to gain customer attention and trust. For that, you need to prove that your start-up is legit. Here's how to prove to consumers that your start-up is legit. The three strategies mentioned in this article will work and have worked in the past.
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Leverage the Existing Sources of Legitimacy
The first
step you need to take is to leverage the personal resources as a source of
legitimacy so that you can attract critical resources like a funding team that
can help you get sufficient funding. You can use your professional network and
personal connection to confirm that your start-up is legit and gain new
customers. Then you can ask those connections to promote your start-up in their
respective networks to build trust for your brand.
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Align Your Actions with Expectations
The second
strategy you need to follow is to align your actions with the rules of the
game. You need to follow formal regulations and follow informal expectations as
well. For instance, you need to ensure that you follow all the licensing requirements
expected from the company. In addition to that, you should follow ethical
business practices that are expected but not written anywhere. The higher
effort you want to put in to meet expectations, the better would be the
results.
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Make Yourself Unique
Another
important aspect of proving that your start-up is legit is to make yourself or
the brand unique. You need to make clear how you are different from the
competitors and why customers should trust you. After you gain the trust of a
few customers, you should motivate them to promote your brand and its products
and services. You can give them incentives or special coupons that will be
activated when they post a Google review of your business/products/services.
Referrals are still and will always be a strong marketing method as they are
based on customers' trust. You can get as much as 50% of new business by
customer referrals.
All in all,
it can be said that entrepreneurs ignore the importance of managing the perception
of legitimacy when they start a new business, enter a new industry, or launch a
new service/product. Without it, an entrepreneur might end up with unfriendly
and cold investors. In contrast, when you follow the strategies mentioned above,
you will be able to gain customer trust, acquire new customers, enter new markets,
and gain a brand value that everyone in the industry would know and trust.
Need more
useful tips on branding? Here are the ten common branding
mistakes to avoid when establishing your start-up and hoping for a better brand
personality.
Also, here
are some useful tips on how to find investors and raise
millions for your start-up. Good luck!
Source:
https://hbr.org/2021/05/3-strategies-to-convince-people-that-your-startup-is-legit