Starting a business comes with many decisions to be made, and even more tasks that need to be handled. You are now the boss; you are in charge of everything, from figuring out your tax liabilities to obtaining business licenses, reviewing and establishing your products and services, assisting customers, marketing and advertising, even keeping the floors swept and mopped. Let’s face it, being in business for yourself has some great rewards, but you will definitely pay your dues along the way.
Another thing you probably did not expect was that your friends, relatives, colleagues and even strangers have advice for you; some of them may be successful business people, and others, not so much. Regardless, everyone thinks they know what it takes to be successful, so one of the best measures of whether your business will flourish or flounder is knowing which advice to take and which to shuck. Here we share some of the worst startup advice we’ve heard.
These are the types of advice that entrepreneurs should simply ignore, and it will give you an idea of which “experts” are helpful to you, and which are full of fluff.
Passion is all you need
We’ve all heard motivational quotes about passion overcoming work, or finding your passion and you will never work a day in your life. The truth of the matter is that you will likely put in longer hours and face more stress when you are self-employed, particularly in the beginning, and your passion can wither. Certainly your enthusiasm can attract some financial investors and customers, but passion alone will not make any business an overnight success without the accompanying hard work that is its partner.
Your business plan must be set in stone
Having a written business plan is critical, as it shows that your ideas are well thought out and researched; this will appeal to investors that see how serious you are about your business and your action plan. However, conventional wisdom says that you should not waiver from your plan, no matter what happens. We beg to differ; the best businesses are nimble and able to quickly shift gears when necessary due to competition and the reality of what their customers want and need after some good A/B testing. This agility is one of the greatest assets a startup company has to their benefit.
You must target a huge market
Entrepreneurs are often told that only billion-dollar or million-dollar markets are worth their time and effort. Lots of successful people will tell you that smaller markets can be extremely lucrative, and thriving enterprises can be found in rural areas and tiny niche markets that are much less competitive. These markets require far less capital and are therefore less risky for a startup.
You should guard your ideas with your life
Most new businesses are borne of a big idea, something that the entrepreneur feels is one-of-a-kind or life-changing. Think Wendy’s Hamburgers in the 1970’s; Dave Thomas felt he could do much better than the existing fast food restaurants and his burgers were definitely different, filling that niche we mentioned in the paragraph above. However, his ideas were not exactly secrets, and he consulted with many restaurant veterans before he made his move. Keep your cards close to the vest, but do your homework.
This is the most important thing
You will hear many so-called “experts” claim they know the exact thing that you need to do for your guaranteed business success. Keep in mind that for every person that gives you one piece of advice, another will believe the exact opposite. In other words, take everything you read and hear with a grain of salt, think about how it applies to your situation, and make your own decisions.
Overall, there is a great wealth of information available to startup companies, much more so than in the recent past. Being careful which advice you listen to and act upon is a delicate balancing act. Entrepreneurship programs abound, and the best are filled with well-respected business people and investors. If you find that not to be the case in one that you have gotten involved with, politely excuse yourself and go home. Conversely, you may find yourself face-to-face with someone that can be an exceptional mentor. A great mentor is someone that freely shares his or her knowledge and experience; whether it is about building a business brand or figuring out your target niche. This is also someone that will tell you honestly that the nuances of legal statuses or business insurance are outside their comfort zone while offering excellent referrals and introductions to experts who can help with those details. This type of mentor can and will offer you excellent guidance and unending support while helping to supercharge your business.
