Everyone at some point in time or the other harbors ambitions to set up a small business and be free from the daily boring office schedule and constant admonishments from the boss. However, stories of the success and failure of small businesses are often clouded with misconceptions and myths that can cause confusion and act to derail your startup if you do not know the truth. Many of these are just assumed to be true and simply don’t work as expected when putting into practice. Some of the most common myths about businesses and the reality behind them:
The Customer Is Always Right
As important as it is to listen and empathize with customers, you should be very clear about the extent your business will go to and manage customer expectations appropriately. Trying to satisfy all the demands of customers can only lead to your losing focus on business efficiency and you will find that you are turning off a larger section of your customers with your preoccupation with just a few.
Great Products Sell by Themselves – Believing This Myth Can Be Costly, Says Eric J Dalius
You may build a perfect product that fulfills unmet customer needs, however, if you think that your product will fly off the shelves by themselves, you are in a fools’ paradise. For businesses to be successful not only does the product have to be functionally good but also customers must be able to know of the availability of the product and understand how it is aligned to solve their problems. This means that the business will have to actively market its products to its target audiences and also set up a proper distribution network for ensuring easy availability. A customer-friendly pricing and positive product reviews are essential for success, adds EJ Dalius.
There Is Nothing More Important Than Sales
While sales are important, the solvency of the business is even more vital. There is no point in selling if the cost of production and overheads are more than the sales price. In fact, for every sale made, the business drives deeper into the red. According to https://www.entrepreneur.com, even profitable businesses can have a negative cash flow if the cash going out of the business is more than its income.
Low Prices Are Only What Customers Care About
While it is true that a certain segment of the target audience cares only about low prices, it is traditionally a market that is commoditized and difficult to compete in. For businesses to be successful, they need to pay attention to value addition and outstanding customer service that will bring customers back again and again in comparison to a price-sensitive market where customers have no loyalty and look out only for the lowest-priced product.
Succeeding in business is not something business owners can leave to chance. You need to define clearly what the business objectives are and develop and implement strategies for achieving success. Believing in myths that abound can only detract business owners from their goals and should not be given any credence.
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. Eric is also the host of weekly podcast “FULLSPEED” which is a podcast that features interviews with groundbreaking entrepreneurs from a variety of industries.Eric is also the founder of “Eric Dalius Foundation” where he has created 4 scholarships for US based students. Follow Eric on Twitter,Facebook,LinkedIn,Instagram & also on Entrepreneur.com