Most Startups Ignore This One Asset That Makes or Breaks Their Success Although I am an investor and spend quite a bit of time analyzing possible investments, people frequently ask me: What's the first thing you do when you learn about a new startup? My answer is simple — I look into the founder.

In modern businesses, creating and building a great personal brand is not just an asset; it has become a survival tool. Impressive metrics might catch attention, but it's the founder's personality and reputation that ultimately win over investors, partners and customers.

Why is a personal brand essential for founders?

According to Nielsen's Global Trust in Advertising Survey, 92% of people trust individual recommendations rather than from companies. This demonstrates a very obvious truth that human beings need human ties and relatable stories more than they do polished corporate rhetoric. Moreover, 82% of respondents said they trust a company more if its CEO is active on social media, and 77% are more likely to buy from a company whose CEO publicly demonstrates expertise. These numbers align with my own experience. Of all the general assets at a company, nothing rivals what a founder's strong personal brand can do.

At its core, a personal brand fosters trust. In an age overwhelmed with information, people need dependable touchpoints for reference. A well-crafted personal brand helps you stand out, creating emotional connections with your audience. This audience is not just limited to customers; it extends to partners, investors and employees.

Related: Why Rejection is a Startup's Best Growth Strategy

What do investors look for in a founder?

Research from Zayed University reveals that 90% of investors look for traits like determination, passion and a willingness to learn in startup founders. Interestingly, personal branding becomes the means to showcase these attributes. When you share your success, talk about challenges you faced and highlight how you overcame them, you're becoming more than just an entrepreneur but also an inspiring leader.

When founders invest in their brand, they attract potential investors' interest while building confidence in their teams. In fact, 54% of surveyed investors noted that internal team dynamics play a crucial role in their decision-making. Such high-involvement teamwork comprises strong leadership and effective communication that inspires other team players.

Additionally, a personal brand gives you a platform to amplify your voice. Speaking at conferences or sharing your insights on industry challenges positions you as an authority. In that instant, you're not even speaking about your company; you're shaping a story that touches people's lives. This is particularly vital for startups, where the energy and enthusiasm of people are the music that would make winning an everyday affair.

Personal branding as a networking tool

It is well known that networking serves as a keystone in success, and personal branding is an easy way to unlock innumerable opportunities. A famous founder accesses partners, mentors and investors easily. Your reputation precedes you, making you stand out at industry events and enabling you to connect with like-minded individuals.

Moreover, personal branding can directly impact funding opportunities. When a founder's name is synonymous with success, their startup is more likely to get investments. Take names like Elon Musk, Steve Jobs or Richard Branson: their personal brands did not just speak about their companies, but they became a legacy in themselves for innovation and inspiration.

The impact of visibility

Early in my career, I worked on crafting my public image. By sharing insights on social media, attending events and remaining visible in professional circles, I was able to discover great investment opportunities and build lasting relationships with talented entrepreneurs.

One memorable experience was with the startup that had a working founder, who was quite established in their niche. This person regularly shared articles, celebrated achievements and openly discussed failures, demonstrating their ability to learn and grow. I trusted them based on their authenticity, and I was quite quick to see their project's potential. That investment became one of the most successful ones in my investment career.

On the other hand, I have seen very talented entrepreneurs miss out on massive opportunities due to a lack of personal branding. One founder I met at a conference had an incredible product but no public presence. They shared no story or demonstrated their expertise, which made it difficult for them to attract investors and partners. This taught me an important lesson: even groundbreaking ideas need a face behind them to gain traction.

Related: How to Boost Your Business's Visibility in Local Search Results

How to start building your personal brand

The first step in building your personal brand is understanding its value. It exists to give visibility, to furnish credence and to build trust. Start by little: create valuable content, share your thoughts and participate in events in your industry. The minute you get the story to show to the world, the world starts paying attention.

Authenticity is crucial. Trust is the foundation of a personal brand, and honesty is the source of trust. Do not hesitate to show your mistakes alongside your successes. People who don't need to go into a closet to hide behind their fantasies are the most real; open folk are those people who get a lot more of people's support.

Remember, building a personal brand is a long-term process. Start by defining your values, goals and target audience. Then, gradually develop a strategy, incorporating various formats and communication channels as you go.

Personal branding is no longer the privilege of the elite; rather, it has become almost compulsory for every startup founder. Personal branding lures investors into entering firms, facilitates team building, widens networks and earns confidence for the project. Think of it as an asset that works for you even when you're not actively networking. Most importantly, it's your chance to tell the world who you are and what you believe in.