It becomes tough for a start-up company or firm to convince a client or a customer to trust them. The new business ventures have to tackle this issue to prove their reliability. Convincing users to put their trust is one of the leading challenges for entrepreneurs as the users’ constraint themselves to try something new and trust a brand name they have never heard before. According to facts, around 80 percent of the consumers trust a firm based on the reputation of the company and around 90 percentage of the new product fail.
Entrepreneurs can, however, leverage their past venture experiences to build credibility. The start-up might be a new brand in the market, but the entrepreneurs behind the new brand are old players in the market.
There is nothing odd as it might look when an entrepreneur is asked to brag about his or her past to build the future. In fact, this method is followed by most successful companies do. As an entrepreneur, the past projects are the tools to build credibility. The past projects which have uniqueness in any way can add more value to the firm. The unique feature is what will attract the new clients more. Here are few steps by which the entrepreneurs can establish as a credible player.
Carve Your Niche
Not breaking any new ground has resulted in failure for about 40 percent of all the start-ups. Thus, it becomes important to take a dip in the past. With the experience in the past, the unsolved problems and uncovered areas can easily be found by the entrepreneurs. Knowing the unique and unsolved areas the entrepreneurs can use their skills to resolve it.
Sarah Heering and Angel Anderson, founder of NailSnaps are a good example. They implied their digital media and design experience in the world of nail art. The two instead of creating traditional nail product, created way for the users to upload their photos and designs to apps to turn them into nail wraps
Past Relationships Matter
It is a fact that brand recognition has much power in any business. Using the brand names to leverage the new business is a very good method. Associating brand names to the new firm establishes the new firm in the process.
Uber can be a good example in this case. Uber was about to die initially but survived by linking its name to big tech brands. It sponsored venture capital events and tech conferences in San Fransisco.
Pay Cuts Are Not Bad
The prime focus of entrepreneurs of any start-up firm should be what work is being done instead of looking at the pay scale. The entrepreneurs must not be afraid to work for low cost. Sometimes it is not bad to work even for free if the project is really good. The accomplishment of the project will add more value to the start-up.
The work you have done will count and make you stand out of the crowd. The hard earned experience as an entrepreneur will always prove advantageous to you.