Starting a business from scratch is a challenging task. You have to build almost everything without yourself. However, when you begin, you will find out that suddenly a lot of people surrounding you have started giving you advice on how you should manage your business. Initially, you will take advice as support, but in reality, the advice by inexperienced people can put your business at risk.
In this article, we will list the five worst advice small business owners should avoid at any cost. Advice is necessary for any business to flourish. However, with no real world experience, entrepreneurs can make mistakes and work using wrong advice. Always remember, no business is the same and advice can only be given by persons who are in the market for long or have a proper understanding of what you are trying to achieve. Even experts, sometimes, manage to share worse advice to new entrepreneurs who are just starting out.
To help you avoid this kind of advice, we will list them below. Let’s get started.
1. Raise money to grow your business
Even though it seems obvious that you need money to grow your business, but that’s not the only thing you will ever need. When a small business raises money, they are just getting funded. However, the real challenge starts when you need to use the funds and make your business grow. Initially, you should focus on laying out your business by small steps rather than aiming for that big funding.
Raising money should never be the goal of your business. Small business makes this mistake, and after getting funded, they lose the momentum. Also, this should not be confused with the need for funds to make the business run smoothly. Not only that, it is the common behavior to see people and social media applaud for successfully raising money.
2. You should hire people you know
You can literally count how many times you will receive the advice of hiring people you know. It is no doubt that hiring people do have its own advantages. But, the disadvantages easily outweigh them. If you decide to hire people you know, you are compromising on the exact skill set you are looking for.
To overcome this, you need to hire when a position needs to be filled. As an owner, you should not look to incorporate your friends or colleagues to a position, but rather find talent that suits your business needs. Also, it is easy to part ways if things are not working out. If you are working with someone close, you might have a difficult time conveying the message and asking them to leave.
3. The market is already saturated
There are currently hundreds of app development company in the market. Does that mean that you should not create a business surrounding app development? Of Course, not. You can always start working on your business, and if you provide good enough services, your business will always flourish.
When you start your business idea, it is common to find people suggesting against it citing that the market is saturated and there is no place left for new players. That’s not true at all. If you listen to them, you will be losing on a business opportunity that you are passionate about. Also, it doesn’t matter if there are big players or established companies, you aim should be to create a business model that offers new and exciting things, keeping the fundamentals intact.
4. You don’t need to spend on Social Media
Small business owners don’t understand social media. On top of that, you will find people suggesting you to not spend on social media. After All, you can simply create an account for free, right?
The point that needs to be taken here is that there is no free marketplace. Of course, you can reach people by spending nothing, but that’s a limited reach and will not help you grow your small business. Even though social media is a free platform, you need to spend a small amount of budget to leverage it completely.
5. Lower the pricing of your service to beat the competition
The value of services depends on the current market and how you value your business. However, don’t get fooled into thinking that you can beat the competition by lower your pricing. When you lower your pricing, you are making less profit, and it will take considerable sales to gain substantial profit or growth. The best way to approach is to keep competitive pricing and let the quality of your service speak for itself.
Small businesses always run with the high risk of failure. If you want to make sure that you succeed, don’t listen to random advice. So which advice you received that you plan to avoid? Comment below and let us know.
Have you read?
The World’s Most International Universities In 2018.
America’s Top 20 Business Schools With Highest Post-Grad MBA Salaries, 2018 Rankings.
Check Out The Best MBA Programs For Women, 2018 Ranking.
Best Fashion Schools In The World For 2017.
Best Hospitality And Hotel Management Schools In The World, 2017.
Latest posts by Yogesh Choudhary
- How to ensure private data security when downloading new apps- 5 tips - April 1, 2018
- 5 Easy to Avoid, Social Media Mistakes Small Businesses Make - March 22, 2018
- 5 Worst Advices Small Business Owners Should Avoid - March 21, 2018