The Importance of Entrepreneurial Honesty

Know why entrepreneurs should adopt a transparent approach towards sharing their thoughts or problems with team members.

Entrepreneurs are an optimistic breed – driven, passionate, overly ambitious. No, nothing wrong with it. If there’s a drive to accomplish something and to be a boss in his or her own right, no matter how long or difficult the road is, the journey is definitely worth it. However, one needs to run a business by bearing in mind a high rate of failure & disappointments.

Everything can’t be and is not hunky dory all the time. Repeated cases of dissatisfactions can be rather frustrating, even reaching a point from where the closure of the business is near. The situation gets worse when the entrepreneurs are not really honest and transparent with their team members. They don’t realize the fact that lying or hiding issues from them can result in a faster dissolution of the business!

Here’s why entrepreneurs must strive to ensure good communication and honesty on a more serious level:

Stress levels take an indefinite bow

They do! Withholding information regarding anything can result in high levels of stress. Most entrepreneurs tend to burden themselves with problems pertaining to the business. In many cases, if the company loses out on a project or doesn’t get funding, the entrepreneur doesn’t communicate the entire issue to the employees. The entrepreneur can feel demotivated or let down since most of the information stays with him or her. This is why it is so important to “talk it out” within the organization. Sharing bothersome issues can reduce the stress levels manifold.

Finding a solution when least expected

Things become a lot better when the employees feel a part of the problem. When there’s a transparent communication between the boss and his or her employees, it results in a more fruitful solution. Hence, it is necessary for entrepreneurs to have an open mind & to lend a platform to his or her subordinates for feedback about the on-going crisis.

This kind of transparent, two-way communication can open up a plethora of corrective measures that can be taken to rectify a rising issue. The boss may not realize this but finding a solution when it is least expected can change the course of the way in which the business is being run positively. In fact, it’s a win-win situation for both the parties – the entrepreneur finds a solution to the problem and the employees’ get a morale boost.

Win the respect of all team members

It takes courage for the entrepreneur to own up to his or her mistakes and acknowledge his or her weaknesses. It really does! But if he or she ‘can’ admit everything that has gone during the course of the business, there’s nothing like it. Being honest pays, especially in front of team members who, in some way or the other, appreciate an honest boss!

An entrepreneur has the ability to create an army of loyal employees only if he or she offers an open work environment where there is freedom to apply not only their knowledge but also inter-personal skills. Team members will not restrict themselves when applying energy or giving their 100% towards achieving both organizational and personal goals.

Obviously, the entrepreneur will earn the confidence of his or her employees by coming out clean or sharing his or her feelings. Even the smallest of details such as “shifting the office to another location” or “the process of downsizing” shouldn’t be hidden from the team. It helps in building a better bond within all the employees of the organization. After all, whatever relationship it is, everyone appreciates a little honesty.

Entrepreneurs should disclose complete information; encourage feedback and react positively even when the feedback is negative. Acting defensively or emotionally shows that he/she is unsure about his/her idea. Also, erratic reactions give signals of immaturity and bad management skills.

An entrepreneur should keep in mind that it is necessary to allow team members to give solutions, offer a sense of encouragement and maybe even take lead in resolving crisis themselves.

Crisper the communication, the better it is!

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