The past 10 years have witnessed an increase in the number of small businesses. Not to mention the growing number of young and enterprising people taking the plunge as entrepreneurs to explore uncharted paths. However, the concept of ‘small is good’ may not be true in today’s age of digital presence.
Here are 9 myths about small businesses that make you think, perhaps rethink, before you take the first step towards setting up your own small business.
Myth 1 – Small capital, safe bet
Needless to say, small investment is indeed the right way to make a head-start. However, you also need to factor in the day-to-day expenses you may incur for the smooth functioning of your business. More often than not, small businesses fail to anticipate these as it would be a while before they break-even.
Myth 2 – Define and study market
Defining your target market is as important as making an investment. When you know whom to target, all your marketing efforts would show results. Also, an initial study of your target market will help you understand well their preferences and address them accordingly.
Myth 3 – Big Idea, bright business
Perhaps the biggest misconception of all is that a unique business idea brings in loads of customers. Unfortunately, this is not true always. There are several instances in the past where a great idea has failed miserably, while a mediocre idea has witnessed tremendous success. Hence, any idea should have business viability for achieving success.
Myth 4 – Sales mean success
If sales number were indicative of the success of any business, then probably dwindling profit margins despite sales numbers would defy this statement. Sales should be one of the parameters of success but never the deciding one. Hence, emphasize on cash flow for better growth.
Myth 5 – Money matters most
No, this is not true also! Businesses irrespective of their size need to focus on building value for your company. And in case of small businesses, it is important to work on building value right from the beginning in order to sustain the competition. Then, money and success would follow automatically.
Myth 6 – Hard work pays off
Hard work may not always pay off. However, hard work coupled with smart work will surely make success achievable. The fruits of success can be relished only when you sow the seeds of determination and nurture it with the efforts of hard work.
Myth 7 – Consensus key to growth
An awesome team work could place a small business on the path to success. But the assumption that consensus is the key to achieve team work is debatable. A vision is laid down by the leadership; while the team may not have consensus within but a collaborative effort of the team will propel the small business to achieve success.
Myth 8 – Low price, early gain
Reducing the pricing of your products or services as against your competitors would not fetch you benefits in the long run. On the contrary, you are letting yourself get trapped in a vicious ‘price war’ which is detrimental to your business. Plan right; price right.
Myth 9 – Social media at a later stage
Unlike the traditional methods of marketing that dealt with print and electronic media, social media marketing takes you closer to your target and helps you analyze your marketing efforts better. A prudent planning of your marketing strategy should make room for activities on digital and social media as well.
The era of digital presence has opened up a plethora of opportunities for the young and risk-taking. Gone are the days when it used to take awfully long time to setup a business. However, today things get rolling faster and realizing your business goals is just a matter of proper planning, strategy and quick actions.
Be wise and work smart to achieve success in your small business venture.