Here’s the Real Reason MoviePass is Failing So Spectacularly (Hint_ It’s Not what You Think)

MoviePass is failing in-part because it didn’t fully understand the business on which it tried to build its own empire. A slew of news interviews with theater operators points this fact out. They say the service just doesn’t understand how the cinema business works. But, perhaps more importantly, what’s caused things to go so badly in such a short time is it was always too good to be true.

In other words, the company overpromised. That’s really why the startup is quickly sputtering out-of-control. And, it’s what gets far too many fledgling companies in big time trouble. Eager to please and deliver jaw-dropping results, they promise the moon and hardly leave earth’s atmosphere.

Biggest Overpromising Pitfalls

Undoubtedly, critics say it’s time to face reality and close up shop. Irate subscribers and suing shareholders might disagree. (The former wants out, while the latter wants its investment money back.) But, it’s now apparent the movie-selling service just can’t operate as it has. And, for good reason. When you overpromise, you put undue pressure on yourself. Not to mention, you artificially raise expectations to unreachable heights.

How many times has a salesperson promised to increase your company’s exposure by 50%, double your client list, and quadruple your profit margin? In this age of instantaneous satisfaction (thanks, technology!), many entrepreneurs and corporate leaders are so eager to appease stakeholders and worried about the bottom line that they seize amorphous opportunities and are disappointed with the results. —Forbes.com

There’s more downsides to overpromising. You’re not only letting down one customer, you’re also sending a message that you just aren’t competent or capable of delivering. Then, there’s also the fact that you create resentment among your employees — toward you and each other.

3 Effective Ways to Avoid Overpromising

So, how do you avoid the trap of overpromising. After all, you want to sell your business as the solution. Here are a few helpful suggestions for how to avoid overpromising:

  • Learn your customer’s expectations first. Before you begin making promises about what you can do for someone, be sure to ask about their expectations. There’s no good reason to offer lofty solutions or goals when you don’t know what’s really needed.
  • Be completely open, honest, and transparent. As you’re talking with your customer (and with your own team), it’s very important to always be honest. One of the fastest ways to invite disaster is to keep secrets. It’s just counterproductive to hold back because it will eventually come back to bite you.
  • Keep all communications flowing between everyone involved. Communication either solves or prevents a whole lot of misunderstandings. It’s not enough to just be honest but also, to make yourself accessible. When everyone communicates, everyone is on the same page. And, that’s an invaluable element since it paves the way to success when all parties are on-board and totally in-the-know.

What other ways do you avoid overpromising? Or, what other advice would you give? Please share your thoughts and experiences by commenting!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Related Posts

How Small Businesses can Prepare for Employee Maternity Leave

One of your best employees just came in with some exciting news – she’s pregnant and it’s her first! Everyone congratulates her and during the excitement, you begin to realize that this is going to affect your business in a profound way. Panic begins to set in as you think about all the help you’re losing – at least for the short term. Fortunately, it doesn’t have to be so nerve-racking. You can create a reliable plan of action to deal with this momentous occasion. How Small Businesses can Prepare for Employee Paternity Leave, Too Of course, the same could be true for a new father. Your right-hand guy will be out for an extended period of time. Although this is a wonderful occasion, it leaves you feeling quite anxious. After all, this is one of your go-to people and definitely among your top performers. So, where do small firms commonly go wrong when it comes to managing maternity? ‘Some delay unnecessarily, rather than starting to plan and act as soon as they’re told about the pregnancy,’ Cecily Lalloo, an HR expert, replies. ‘This can mean you end up recruiting the wrong person, meaning you’ll have to repeat the process, which wastes time and money.’ —The Guardian Small Business While he’s away with his wife and new baby, all of his work will still have to get done somehow. Even more worrisome, is how you’ll fill that gap, regardless of the amount of time. It’s enough to make anyone feel quite unsettled because this type of news generally comes out of the blue and you’re unprepared for it. However, if you follow the suggestions below, you’ll be able to get through it as smoothly as possible. How Small Businesses can Prepare for Employee Maternity Leave When you’re faced with a maternity leave situation or any type of parental leave, you’ll obviously need a plan to follow. Here are some steps that you can take when this type of situation arises: Create or review your maternity leave policy. If you already have a maternity leave policy, then great, simply review it to ensure that it is up to date and that it will work for your business in its current state of affairs. But, if you don’t have a maternity leave policy, you can create one and customize it to fit your needs. Speak with the mom-to-be one-on-one. The next thing you need to do is to speak with your employee about her plans. Don’t be afraid to ask specific questions, or inquire about her plans to return or leave her position. It’s far better to know than guess, leading to unnecessary confusion and worry. Have her document all her projects and tasks. Regardless if she’s coming back to her position or you need to hire someone else, you’ll need to know exactly what projects and tasks she’s currently working on. Either way, you’ll need somebody to come alongside her in order to be familiarized with her responsibilities so that person can assume her role. Assign one or more backups. If you don’t have someone already on your team who can take over, consider spreading her work among a few people. However, if this isn’t feasible, you should consider bringing in a temporary person. Create or review your transition plan. Lastly, you’ll need to develop a transition plan for her return if she is coming back. This will allow her to ease back into the swing of things without being overwhelmed. What other suggestions do you have for preparing for an employee’s maternity leave? Please take a few minutes to share your thoughts and experiences so others can benefit from your perspective. Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »

How to Deal with Customers who Monopolize Your Time

You’ll encounter a number of personalities as a business owner. Most are pleasant but some are downright rude. Others might be quirky, yet fun. Still, others can be flat-out nightmares. Then, there are those clients who demand too much, want to pay too little, and brag about their importance, yet still, have high praise for you. Of course, there are also niche personalities, people who possess less-than-desirable traits, such as individuals who take up way too much of your precious time, completely oblivious to the fact you must also take care of others. Fortunately, there are a few ways to cope with customers who tend to monopolize your time. Time-Wasting Customers Take a Big Toll It’s not just the boring, pointless conversations that are problematic. It’s the fact that you’re having to take time away from true priorities. Obviously, this can be very frustrating and even detrimental to your business. After all, if you can’t attend to matters as needed, it causes you to rush and that leads to mistakes. But, it also has other negative consequences. For instance, draining you mentally and straining your patience thin. Good salespeople understand how to walk a fine line between ignoring a client and spending too much time on him. As a sales professional, you need to learn how to use your time to maximum advantage. If a client or customer is monopolizing your time with no intention of buying anything, the ability to disengage without causing offense is vital. —Houston Chronicle Small Busienss When you experience such feelings, it can easily put you in a bad mood. A foul state of mind could also cause you to unfairly snap at your own team. Or, just ruin a good portion of your day. At the very least, you’ll probably become preoccupied and ruminate on your misfortune, which might lead you to become apathetic for the rest of the afternoon. How to Deal with Customers who Monopolize Your Time The thing is, a good percentage of time-monopolizers aren’t really conscious of their own behavior. (Unless it’s such an annoying trait, other people have made them aware.) Even if he or she knows their tendency, it’s a very difficult behavior to change. Which means it’s largely on you. Here are a few effective strategies for dealing with customers who monopolize your time: Redirect his or her attention. Instead of cutting off the conversation entirely, steer it in another direction. Ask about his or her specific interests in relation to your mutual business and give them a few options to consider. This creates a bit of a diversion and puts the onus on him or her to move the interaction along in a constructive manner rather than meandering from one thing to another. Reschedule and restructure. You can also reschedule a day and time to meet, with certain parameters so it isn’t open-ended. For example, excuse yourself with the caveat you’ll meet again soon. Set a time and also set a structure or an agenda so that he or she knows it’s all about getting things accomplished in a cooperative, timely manner. Get him or her to focus. If you sense he or she is about to go off on a tangent, grab his or her attention with a point or fact that moves the conversation toward a conclusion. This could be about a timeframe, price, quantity, or something else. It should serve as a way to complete the transaction at hand. Regardless of what strategy you choose, or even if you use a combination, always express your appreciation and let them know how valuable they are to your business. Don’t rush and take time to listen to his or her feedback so you don’t accidentally cause an unnecessary rift that could result in unexpected repercussions. What other suggestions would you give entrepreneurs who experience time monopolizers? Please take a moment to share your thoughts; it could be a big help to others when they need it most! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »

3 Effective Ways to Beat Zoom Fatigue

Family businesses generally operate a bit differently than traditional companies. While many aspects are the same or similar, odd situations occur more often in family businesses. And, that’s due to the fact it’s family and not “strangers” that are part of the day-to-day operations. So, common things in regular business arrangements might be quite different than in a family business. For example, employee compensation. Some family businesses neglect to give their employees pay raises because they are members of the family. In other words, it’s not a common practice, because the business is run by a family, instead of unrelated individuals. Of course, the phenomenon of unconventionality is something that can easily be part of a family business, simply because all the individuals involved are related and feel an obligation and duty to the company. Family Business Fringe Benefits are Fine, but Not Compensation Replacements Some family businesses provide their employee relatives with certain fringe benefits. These might be things like extra flexibility with schedules. Or, extra time off for vacations with pay. It could even be things like a company credit card and/or a company vehicle. The job of operating a family-owned company is often grievously complicated by friction arising from rivalries involving a father and his son, brothers, or other family members who hold positions in the business, or at least derive income from it. Unless the principals face up to their feelings of hostility, the business will suffer and may even die. —Harvard Business Review While such perks are nice, they do not take the place of compensation. But, it isn’t at all uncommon for the family business head to see such fringe benefits as a replacement for compensation. Since their relative employees enjoy perks, they view this as some type of offset to a raise and reasonable pay. This can create very awkward and sometimes even toxic situations to arise. Moreover, if non-relatives are working in the company, who do receive bumps in pay periodically, this can lead to outright resentment. How to Talk about Pay Raises in a Family Business Needless to say, it is a very frustrating and even unfair position to be put into by the very business you so loyally serve. Worse still, is that the longer you let it go on, the more normalized it becomes. And that is definitely something you don’t want to happen. Here is some effective advice for approaching the subject about a raise in pay from your family business: Determine your actual value. This applies to every employee, and not just individuals working for family businesses. You need to know for certain what your worth is, based on real-world comparisons. Unfortunately, too many employees overestimate their value and therefore, ask too much from their employer. So, be sure to do your research in order to determine your actual value in the workplace, base on your skill sets, experience, position, and responsibilities. Understand the company’s financial position. Before you bring the subject up, be certain that you know the financial circumstances of the business at large. Don’t assume anything, particularly if you’re not regularly involved in the company’s finances. Guessing and vague ideas will only lead to trouble in one form or another. If you do not have a firm understanding of the business’s financial situation, it might make the entire exercise moot. Or, it could also cause you to become envious and greedy. Be calm, reasonable, polite, but firm. There’s no question that being in such a set of unfair circumstances will cause you to have any number of negative feelings. Remember these are counterproductive to your end goal. You will get much further by being respectful but firm and by engaging in a good-faith negotiation, rather than starting a family feud. If you let your negative emotions get the best of you, it will only lead to a bad outcome in the short term, and perhaps even ruin your relationship over the long term. What other suggestions do you have for such a peculiar and awkward situation? Please take a moment to share your thoughts and experiences so others can benefit from your unique perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »

Imagine Selling Your Business…

How Would Your Life Change?

You didn’t start your business just to stay busy—you built it to create freedom, security, and options for yourself and your family. Selling your business can be life-changing, but the real question is whether you’re intentionally building toward that outcome or simply leaving it to chance.

Sign up below for a free consultative session to learn what your business could be worth today and in the future! 

Thank you for your interest in learning what your business is worth. We will be in touch shortly.