Cultivating confidence

Confidence is the currency of business. Customers trust suppliers to deliver, and suppliers expect companies to pay their bills on time. Lenders and depositors trust borrowers and banks to return their funds at the agreed time and in the agreed manner.

The recent meltdown in credit and other financial markets clearly demonstrates the consequences of lost confidence.

For business owner/CEOs cultivating confidence requires:

• Maintenance of a sound (conservative) financial posture
• Conducting your business activities consistent with promises made
• Frequent, honest communication with all stakeholders
• Addressing problems quickly and clearly
• Always having a backup plan

Trust (confidence) is based on a series of positive transactions over time. Confidence lost is not easily re-gained.