A new report highlights the importance of making new businesses appear credible to employees and customers.
The success of an emerging business depends largely on the owner’s ability to convince potential employees or customers that the nascent company is operational, according to new research.
“People are likely to buy products, work for, and give money to entities that are credible, that they perceive as operational,” said Newbert. “Organizations that make their fledgling operation appear more legitimate than it might actually be are better able to access customers and recruit employees.”