Here at SGI Consultants, we are focused on helping you to start and grow your business faster and easier. I think it’s a good idea to clarify some of the biggest myths about building a successful business.
1 – You Need Lots Of Money To Start Or Grow
If you are planning to launch a spaceship like Virgin Galactic, you may need lots of money to get started. The internet has made starting a business cheaper and faster than ever before. If you are put off starting your own business because you think you need a small fortune to startup. Take a step back and break down your business (and investment) into phases. If your plan is to go global, your first step should be to gain a presence locally. I think you know where I am going with this.
2 – Your Product Has To Be Perfect Before You Launch
Have you noticed that the apps on your phone update regularly?
Have you ever wondered why?
It’s because the developers are constantly fixing bugs, adding new features and improving the user experience.
What can you learn from this?
You don’t have to wait until your product to be 100% complete for you to launch. Release a product that is fit for purpose, gather feedback from your customers and then update your product based on their feedback.
Don’t wait for years to release your product, by the time you do it may be too late.
3 – Customers Only Care About Price
Most entrepreneurs think the best way to compete with established businesses is by being the cheapest in the market. Being the cheapest is only a viable option if you can be cheaper than your competitors and still maintain the same profit margin.
If you do not, you can fall into a very serious trap that will lead to your business failing. I will explain in more detail
If you undercut your competitors and reduce your profit margin, you will have to sell more units to break even.
This puts too much pressure on a new business.
According to Defaqto Research, “55% of customers would pay extra to guarantee a better service”. Most customers buy based on value, not price. Focus on providing value and charging a fair price.
4 – “If You Will Build It, They Will Come”
A paraphrase from the movie “Field of Dreams”. Many entrepreneurs go into business with believing that as soon as they launch they customers will roll in and buy.
However, the reality is far different than the movies. Assume no one is just going to stop by. Develop an engaging marketing plan that will generate interest in your business. Implement a sales process that will close deals.
To stay in business you need a constant, predictable supply of new customers. You cannot rely on word of mouth and SEO. Sure they work, but they are unpredictable.
You have to pay for predictability. Invest in paid advertising and media that guarantees people will find your business.
5. You Need To Spend Money To Make Money
To some extent, the myth is correct because if you don’t spend money on marketing you will never generate predictable growth.
However, this doesn’t give you the licence to spend money without understanding your return on investment. When you are starting up every penny must be for a specific purpose, you should only focus on areas that provide value for your customers.
6 – You Should Keep Your Idea A Secret
Your business is for people, right? So what is all the secrecy for?
Too many entrepreneurs want to keep their idea a secret because they are afraid someone will copy their idea. I am sorry I have to say this, but if your business can be copied so easily, maybe it isn’t such a good idea to begin with.
I completely understand you must protect the intellectual property of your business. But to find out if your business idea is worth pursuing you have to prove the concept with your target market