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Key Takeaways
- The relationships we build — with clients, partners, employees or even competitors — can lead to new opportunities and collective growth. They bolster us through crises and amplify our successes.
- Mismanaged relationships have real financial and reputational consequences. Maintaining them requires humility, consistency and care.
- Nurture your relationships patiently, monitor them vigilantly and don’t take them for granted. You’ll build a thriving enterprise and a legacy defined by trust and impact.
As CEO of BGN, a global energy trading company, I’ve seen deals spark or fizzle based on nothing more than trust built between people. The partnerships we cultivate, with clients, partners, employees — even competitors — form an unseen safety net that catches us in crisis and propels us in prosperity. Relationships are powerful, but they are also fragile, requiring constant care and authenticity.
Business partnerships often begin with a handshake — a simple gesture that symbolizes trust, mutual respect and commitment. Strong relationships in business are like an ecosystem: Each connection, nurtured over time, can lead to new opportunities and collective growth. Companies that prioritize relationship-building create networks of goodwill that bolster them through challenges and amplify successes.
Related: 5 Proven Tools for Developing Strong Relationships as an Entrepreneur
The engine of business growth and loyalty
Business is inherently social. In fact, research shows that as much as 90% of the information senior executives act on is received via informal networks rather than formal reports. This means that behind most strategic decisions are conversations and confidences shared between trusted colleagues.
Internally, leaders who invest time in people often discover that loyalty, insight and innovation come in return. Externally, the quality of relationships with customers is just as vital. In other words, how you make people feel matters. Satisfied clients refer new business; supportive suppliers go the extra mile; engaged employees give their best.
It’s no wonder marketers now talk about “Return on Relationship (ROR)” — the value that accrues from nurturing relationships through loyalty, recommendations and sharing. These relationship dividends directly impact the bottom line, fueling sustainable growth. I’ve seen this firsthand consistently throughout my own career.
Many of the world’s greatest business success stories are really stories of relationships. Take the partnership between Warren Buffett and Charlie Munger at Berkshire Hathaway. Their nearly 60-year business alliance thrived on complete trust and mutual respect, helping to transform a struggling textile mill into one of the world’s most valuable companies.
Or consider how former PepsiCo CEO Indra Nooyi nurtured extraordinary loyalty by writing 400 personal letters a year to the parents of her senior executives, thanking them for the “gift” of their child’s leadership. That kind of personal touch humanized her leadership and strengthened bonds within her team.
In my own experience managing BGN, our most significant deals often originated from relationships tended over years. For example, entering a new market meant months of listening to local partners’ concerns and helping solve problems long before any contract was signed. By the time we officially conducted business, we were negotiating transactions, sure. But more importantly, we were solidifying trust. Those are returns no financial model could have predicted, and they are earned by patiently building genuine connections.
Related: 4 Strategies for Building Deep Business Relationships
When trust falters: Lessons in mismanaged relationships
Relationships take years to build, but only moments to break. To reference the investing giant once again, Warren Buffett famously quipped that “It takes 20 years to build a reputation and five minutes to ruin it.” In business, a single breach of trust or failure to honor a commitment can unravel years of goodwill.
Mismanaged relationships carry real financial consequences. A client who feels betrayed can broadcast their bad experience widely, damaging a brand. A key employee who leaves over a trust issue can trigger a talent exodus. And an investor who loses confidence can dry up your capital.
We saw this on a grand scale with WeWork in 2019: The co-working startup’s meteoric rise collapsed almost overnight when investors lost faith in its leadership. Within six weeks of its ill-fated IPO filing, WeWork’s valuation was slashed by more than half, and its founder-CEO was forced to step down. The catalyst was ultimately a breakdown of trust and credibility at the top. High-profile failures like this underscore a simple truth — no amount of brilliance or hype can save a venture if its key relationships are broken.
Related: Want Strong Business Relationships? Avoid These 3 Mistakes.
Maintaining relationships requires humility, consistency and care. Leaders must communicate with honesty and transparency, especially when things go wrong. It means owning up to mistakes and making amends before small rifts widen. It means treating people — from major stakeholders to junior team members — with respect and integrity at all times. The leaders who endure are those who understand that every interaction matters. They know trust, once damaged, is painfully difficult to rebuild.
By contrast, leaders who cultivate a reputation for fairness and reliability find that opportunities seek them out. In crises, their network rallies to support them. Over the long run, how you treat people becomes a defining element of your legacy as much as any financial metric.
For today’s entrepreneurs and executives, the mandate is clear: Put relationships at the center of your strategy. Nurture them patiently, monitor them vigilantly and never take them for granted. If you do, you’ll build not only a thriving enterprise, but also a legacy defined by trust and impact. After all, the network of goodwill you weave through your career may well be the most valuable asset you ever create — one that outlasts any single product or deal and keeps propelling your company forward.
Key Takeaways
- The relationships we build — with clients, partners, employees or even competitors — can lead to new opportunities and collective growth. They bolster us through crises and amplify our successes.
- Mismanaged relationships have real financial and reputational consequences. Maintaining them requires humility, consistency and care.
- Nurture your relationships patiently, monitor them vigilantly and don’t take them for granted. You’ll build a thriving enterprise and a legacy defined by trust and impact.
As CEO of BGN, a global energy trading company, I’ve seen deals spark or fizzle based on nothing more than trust built between people. The partnerships we cultivate, with clients, partners, employees — even competitors — form an unseen safety net that catches us in crisis and propels us in prosperity. Relationships are powerful, but they are also fragile, requiring constant care and authenticity.
Business partnerships often begin with a handshake — a simple gesture that symbolizes trust, mutual respect and commitment. Strong relationships in business are like an ecosystem: Each connection, nurtured over time, can lead to new opportunities and collective growth. Companies that prioritize relationship-building create networks of goodwill that bolster them through challenges and amplify successes.
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