As a business owner, have you started to see more stories about the struggles and triumphs of new entrepreneurs? You’re not imagining it; startups are increasingly prioritizing transparency in their communications, both internally and externally. Doing so has the potential to cultivate healthy, thriving company culture. Read on for several ways that transparency is beneficial.

1. Trust Building

Operating in a silo-like environment is the antithesis of transparency. A cultural chasm develops, leading to a lack of trust and alienation. If employees feel that their leaders are transparent, they also perceive their company culture as a good one. The reverse is also true.

2. Employee Cultivation

Cultivating transparency means that you value your employees and their input. Good interpersonal boundaries are essential; you don’t have to be self-focused and open up everything about your life to every employee. Appropriate transparency involves knowing how your decisions and challenges directly affect employees/stakeholders and keeping that in mind when you communicate with them. This lets them know they matter to you; they make a difference.

3. Creative Inspiration

Transparency is a hallmark of creative, innovative startups. Workers gain the information they need to intuitively make inventive leaps and come up with ideas that can propel an organization forward. As you grow your business, you can come up with new ways to be transparent and keep the positive momentum going. In time, transparency becomes a feature of the way you operate both within and outside your enterprise.

4. Strategic Thinking

Effective managers are always considering ways they can incorporate transparency into their daily operations. Whether the strategies involve regular AMA sessions, seeking employee votes on important initiatives, sharing financial information, or regular “state of the startup” emails, this focus on authenticity creates a trickle-down effect within your organization. Your powerful example will likely lead to your employees emulating you.

5. Brand Definition

Developing a brand identity that sets you apart is no small task. It involves a deep dive into every aspect of your operations and marketing. Incorporating transparency as an integral part of your business can be a defining feature of your brand. As your business grows and changes, you’ll have plentiful opportunities to share where you’ve been, where you currently are, and where you’re going.

Developing a system of transparency is one of the best investments you can make in your business. Keep these points in mind as you position your enterprise for success and sustainability.