Posts Tagged ‘myths’
Top 5 Startup Myths
Thursday, May 29th, 2008
You may think you know what you’re getting into…but you have no idea. There are probably a few preconcieved notions you have about starting a business whether you think you’ve done your homework or not. So without further adieu here are the top 5 startup myths you should be aware of:
5. The government gives grants to small business startups - While some states may have special funding programs in place for people with disabilities, minorities or veterans, the federal government does not have any programs that give money directly to any business. Your best bet is to get involved with the Small Business Association (SBA) and see if you can work with them to have them back a bank loan. You can also contact your local Economic Development Corporation to get help regarding information and resources that will help small businesses.
4. The only reason you need a business plan is to obtain financing - Forget about the financing, a business plan should be made to give you a realistic perspective of the market and the competition. Preparing a business plan keeps you from discovering the hidden pitfalls that can lead to an early closing. Yes, a business plan is the best tool to use to figure out the startup and monthly cash needed to fund a business, but that is only a portion of why a business plan is so useful.
3. A unique product/service sells itself and doesn’t need marketing or advertising - Every new business owner believes their product or service is compelling, otherwise why would they invest their time and money in the business? In a marketplace filled with billions of product offerings, it’s the ones that use the power of marketing to their advantage who get the most customers. The worst thing a business owner can do is sit back and wait for customers. You need to work to grab the attention of your target market, because you can bet that if you don’t another business will. And, inferior products or not, they’ll get the business because they put their offerings in front of more people. It’s as simple as that.
2. Small business owners have more free time - Ah, the life of an entrepreneur: Lying around in pajamas, eating bon bons on the couch and leisurely typing away on the laptop - Ha! Try the complete opposite: Early mornings, late evenings, long workweeks and working on the weekends. Sure you’ll be able to see the kids off to school and take them to the dentist, but in order to grow your business, you’ll need to put in the extra time - and that’s especially important in the first three years.
1. Business owners can write off practically everything - Not unless you enjoy being audited by the IRS! Sure there are perks to being a business owner; you can write off business lunches, computers, office rent and utilities, but that doesn’t mean groceries, clothes, haircuts, etc. Some people think that just because they’re a business owner, they can magically deduct every purchase if they can somehow link it to their business ("I need a $5000 ‘power suit’ for the meeting"). The reality is, it just isn’t so, and that kind of thinking is likely to get you into serious trouble with the IRS.
Bottom line: There’s no easy way to the top. Good old fashioned knowledge and hard work is the key!
Tags: advice, myths, Rebecca Button, small business, Starting a Business, startups, tips
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The Top 5 Myths of Retailing
Wednesday, January 16th, 2008
Myths are funny things; most times their origin is unknown and they aren’t substantiated by fact, yet people are more than willing to believe them and pass on the information to others. Poor Seattle has missed out on millions of visitors because of the “it always rains in Seattle” myth. In fact, it gets an average annual rainfall of 36.2 inches while even Atlanta gets more at 49 inches per year. Yet, people still believe that Seattle is the rainiest city in America.
The same thing goes for the retail industry. There are plenty of myths that have undoubtedly kept thousands of potential store owners from opening a retail store, or have pushed thousands more stores to close because of poor sales. If you’re planning on opening your own retail store, it’s important to know the truth behind these myths - knowing the difference between fact and fiction might just keep your new business from an early closing.
Myth # 1: Location, Location, Location - Some people think that a retail store has to literally be at the corner of Main and Main Streets to be successful. That’s simply just not the case. Assuming that location is of the utmost importance means that customers are shopping your store by default, only because it’s convenient and close. True, that may be the case for gas stations, grocery stores and convenience stores; but if your retail store offers something unique, then customers are happy to travel the extra distance. Just think of your own shopping decisions - do you only limit your shopping to include a three-mile radius of your home or work? No one’s saying that having your store in the middle of nowhere is the same as having it in the center of town, but having your store off of Main Street certainly isn’t a recipe for retail disaster.
Myth #2: Online Shopping Will Replace Retail Stores - This is a very popular myth these days. While more and more consumers are shopping online, they aren’t solely shopping online. Online shopping can’t replace the experience of trying on clothes, perusing through the sale rack, holding a product in your hands, etc. Consumers’ desires to see, feel and hold certain products in their hands before buying just won’t go away. At this point in time, it was predicted that the mail order catalog industry wouldn’t exist anymore, and that’s obviously not true. And why? Because people still enjoy sitting down and looking through the pages of catalogs. Sure, it’s not quick, fast or efficient, but just like retail shopping, people enjoy the experience!
Myth #3: Small Retail Stores Can’t Compete With the Big Chain Stores - Unless you are talking about opening a hardware store right next to The Home Depot, this just isn’t true. While it may be the case that small retail stores have a hard time matching the low prices of the big box stores, there are certainly other playing fields to compete on. What about the uniqueness of your products, top-notch customer service and a warm and friendly atmosphere?
Myth #4: The Bigger, The Better - This theory says that the larger the advertising campaign, the bigger the inventory, the higher the sales and profits. While in some cases that might work out to be true, it’s certainly not a fact for all (or even most) retailers. It’s more important to be better than bigger. And, as long as your customers are loyal and your sales are steady, then growth is a natural, good thing. It’s more important that your business is strengthened by its success first, rather than trying to force success with bigger this and more of that.
Myth #5: If You Relocate, You Will Lose Customers - The truth is, moving to a new location can sometimes be the best thing for a retail business. Maybe it gives more space to a crowded store or a better location to a store on the outskirts of town. Give your current customers an incentive to visit you at the new store - like a discount coupon - and be sure to advertise your move well in advance with postings in your store and flyers included with every shopping bag.
There are plenty of other retailing myths out there so be aware and double-check everything you hear. It might just save your retail store from going in the wrong direction!
Tags: advice, Carrie Hinkel, Generating More Sales, myths, retail, retail myths, Sales, tips
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