There are a lot of misconceptions, myths, bad advice and even lies about what it takes to be a successful business. Most of these issues come from people who have never gone into business, or those who have failed and are trying to find somewhere to put the blame.
To help clear the air, we’re here to debunk some common myths about running a business.
- To be successful, you have to be a pioneer – It’s often said you have to be the first one to develop and sell a product or service. However, this isn’t always the case. Think of Microsoft or Dell. Dell wasn’t the first computer and Microsoft wasn’t the first word processor. However, looking at the industry now, these two companies dominate! While the leading edge can be fun and exciting, joining an established industry with your own take on a product can also bring success.
- To be successful, you have to be cheaper –How you price your product does not always determine your success. Nordstrom and Ferrari don’t use a cheap pricing model, but they’re wildly successful. On the other end, Amazon and Southwest Airlines use cheaper pricing models and are also successful. The moral? Customers will pay what they think is fair for your product, but ultimately you have to decide how to model your product pricing. If you have a luxury item, customers will pay more for it. If you aren’t selling your product on the cheaper end, but are providing excellent service with it, your customers will give you business based on other factors besides price.
- The customer is always right – Let us guess, you’ve heard this one a few times before. If this was always true, it would be tricky to find any business being profitable. The truth is customers might be wrong sometimes, but they’re still important for your business. Take time to listen to what customers have to say, and use their valuable input when making business decisions. However, don’t let customer opinions overrule logical thinking or dismantle your business mission. When customers are wrong, they can sometimes cost you more money than they make you.
- Bigger teams mean bigger results – While having a bigger team can help get more accomplished, it can also hinder progress. Having too many people can lead to complicated lines of communication. It can also result in productive team members getting slowed down by helping new team members get up to speed. Team work can be great for your business, just make sure the teams are operating smoothly and efficiently.
- Failure means you’re doomed – We’ve been told our whole lives that being a failure is bad. In reality, failure is actually a stepping stone towards success. While failing can be a setback, it’s important to remember the lesson that can come from it. Failure is only a problem when you allow it to be the final stage, rather than taking lessons learned and growing from them. Sometimes our businesses must encounter failure in order to move forward.
- Knowledge is power – Unless you are actually applying this knowledge to your business or other endeavors, it’s just potential. Take what you know and consider using it to better your business, rather than keeping it to yourself. You never know what kind of growth and ideas you could spark from sharing your knowledge.
- Every customer is equal – Truth be told, some customers can actually be more valuable than others, but in their own ways. A customer who pays you more money isn’t necessarily of more value. Sometimes a customer who pays less for a smaller project might prove more value because they can help move your business in the direction you want it to go. A valuable customer will make you money, but will also align with your vision for your business.
- The more customers the better – Would you believe that some companies go out of business due to too many customers or unreachable demand for their product? If you have so many customers you cannot reach their demands, your business will struggle. Customers may start cancelling orders and taking their business elsewhere, which can result in word traveling that your business isn’t competent. Although it’s a tough decision to make, sometimes you have to turn away customers to keep up with demand and keep your capacity in check.
While some of these myths have some truth to them, many of them are just that – myths. By understanding what can really help or harm your business, you can put your business in a healthy position for growth and success.