Reputation-Led Growth is the new paradigm of growth for startups

In a market where blue oceans are increasingly scarce, the real difference is in how a brand builds and communicates its reputation.

That is, innovation, by itself, is no longer enough to fuel a process of exponential growth and attracting market attention, as we have seen in the last decade.In a scenario where every startup, however disruptive, faces fierce competition, there is also growing consumer skepticism (which now has difficulty differentiating the “novo” from what really came to stay and solve their pains.

Today, what separates businesses that survive from those that scale is reputation. And when I talk about reputation, I mean not only the ability to communicate the impact of the value proposition, but also the ability to “converse” with the public and manage the market narrative around the brand. After all, the reputation of a company is not only a reflection of what it says about itself, but of the genuine perception it builds in the market. 

To get an idea of the size of this impact, the 2nd National Survey on the Impact of Public Relations on the Innovation Market - The Investor Vision, developed by MOTIM, reveals that 91% of investors agree that brands that present their value proposition efficiently significantly increase the likelihood of receiving a financial injection.

This means that, currently, it is no longer enough to have a disruptive solution or a cutting-edge technology. If the brand does not know how to build connection and trust, it has already lost the race. And here, I am not talking about flashy slogans or fleeting marketing campaigns.I refer to consistency, authenticity and frequency. Reputation is built every day, and every act is an opportunity to reinforce or undermine that trust.

Reputation-Led Growth: a new approach comes into play

It is in this context that the Reputation-Led Growth mindset emerges: a strategic approach that integrates the unique assets of the company - its history, its values, what the brand stands for and how the leader personifies all of this in a continuous process of reputation management. 

The concept not only helps to broaden the reach, but also creates stronger ties with customers, partners and investors, educates the market, accelerates the sales process and attracts the best consumers, keeping them close and interested.More than that, it is essential to preserve the image of the company, protecting it from the ups and downs of the market and the fury of competition.

No wonder, using again numbers from the MOTIM survey as a basis, nine out of ten investors consider the personal brand of the founders a determining factor in the decision on the contribution.In addition, more than a third of professionals in the venture capital market place the positioning and history of the founders as the main assets of a brand in the search for investment. 

These data show that founders and leaders have become more than just business managers. They must be the guardians of brand reputation. Who still believes that building a strong business is optional, will realize too late that the market is no longer driven only by good ideas.We are in an era where the real value is in the trust and credibility that a brand conveys and how it remains relevant in the day-to-day lives of consumers in the long term.

If reputation is growing at the same pace as business, we have reached the era of Reputation-Led Growth. Here, the only sustainable advantage is to be remembered, and to be remembered for the right reasons.

*Silas Colombo is CCO and founder of MUTINYSilas Colombo is CCO and founder of MOTIM. Graduated in Journalism and with an MBA in Communication and Marketing Strategies from Cornell University, he was responsible for developing communication campaigns for brands such as Itau, Volkswagen and the Organizing Committee of the Rio 2016 Olympic Games. At the accelerator, he is director of communication and has already produced public relations strategies for more than 200 brands of innovation, technology and entrepreneurship, from startups to multinationals.