Business Education

Debunking Entrepreneurial Myths. What New Company Owners Don’t Actually Need to Do

Starting a new company is an exhilarating and challenging endeavor that often comes with a long list of to-dos. However, amidst the excitement and eagerness to succeed, entrepreneurs can fall into the trap of believing they must do certain things that are not actually necessary for the initial stages of their venture.

So, let’s go ahead and debunk some common myths surrounding startup requirements and shed light on what new company owners don’t actually need to do.

Debunking Entrepreneurial Myths: What New Company Owners Don’t Actually Need to Do

Starting a new company is a daunting task. There are so many things to think about, and it can be easy to get caught up in the details. However, there are some things that entrepreneurs often believe they need to do when starting a new company that they don’t actually need to do. Like the following:

Perfecting every detail. While attention to detail is crucial for any business, obsessing over perfection in every aspect of your startup can lead to unnecessary delays and increased stress. It’s important to remember that launching a new company is a dynamic process, and adjustments and improvements can be made along the way. Instead of striving for perfection from the outset, focus on building a solid foundation and refining your business as it evolves.
Extensive market research. Market research is undoubtedly important for understanding your target audience, industry trends, and potential competitors. However, many entrepreneurs spend excessive time and resources conducting extensive market research before launching their businesses. While having a basic understanding of your target market is crucial, it’s equally important to take action and gain real-world feedback from customers. Embrace a “lean startup” mentality, gather feedback through early prototypes or minimum viable products, and iterate based on customer responses.
Super-sized funding rounds. Securing substantial funding is often perceived as a prerequisite for launching a successful company. While funding can undoubtedly accelerate growth, it is not an absolute necessity in the early stages. In fact, focusing too much on raising funds can distract entrepreneurs from the core aspects of their business, such as developing a compelling value proposition and acquiring initial customers. By focusing on building a viable product or service and demonstrating traction, entrepreneurs can attract investors when the time is right.
Over-elaborate product development. Entrepreneurs sometimes believe that their product must be fully developed and feature-rich before launching. However, this can lead to prolonged development cycles and missed market opportunities. Instead, embrace the concept of a minimum viable product (MVP) that focuses on delivering a core set of features that solve a specific problem for your target audience. Launching an MVP allows you to gather valuable customer feedback early on and iterate your product based on real-world usage.
Hiring a large team. While having a talented team is essential for the long-term success of a company, hiring a large workforce from the outset is not always necessary or feasible for start-ups. In fact, it can be downright counterproductive. This is because you’ll spend a lot of time (too much time) training, onboarding, and more – all of which could be used in much more useful ways. This approach can help startups stay nimble and flexible, enabling them to adapt to changes in the market and grow more rapidly.

Starting a new company is a lot of work, but it doesn’t have to be overwhelming. By avoiding the things that entrepreneurs often believe they need to do when starting a new company but don’t actually need to do, you can save yourself time, money, and stress.

What other things do you think entrepreneurs don’t actually need when forming a start-up? Please, go ahead and share your thoughts and experiences so others can benefit from your input!

Interested in learning more about business? Then just visit Waters Business Consulting Group to learn more about us and the services we offer.

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Your Company’s Mission Statement May be Impressive But It’s Not Necessarily Why Customers Are Buying from You – Here’s What You Should Focus On Instead

June 7, 2024 No Comments

Your Company’s Mission Statement May be Impressive But It’s Not Necessarily Why Customers Are Buying from You – Here’s What You Should Focus On Instead There are many moving parts to opening, establishing, and growing a business. The number is so vast, that it’s difficult – if not impossible – to quantify every element. Unfortunately, some factors and circumstances make too many entrepreneurs believe they must buy into certain practices. Some of these are indispensable, but others aren’t necessary in every situation, and the company mission statement is one prime example. Although noble and laudable, a company’s mission statement is not why customers buy from businesses. The Purpose of a Company Mission Statement Let’s remember, that the purpose of a company mission statement is to provide a clear, concise explanation of the organization’s general purpose, objectives, and values. It serves as a declaration of the company’s reason for being, defining its culture, goals, and values. A well-crafted mission statement can inspire and motivate employees, attract potential customers, and convey the company’s commitment to its objectives and values to the public. It is supposed to be memorable, aspirational, and written with multiple audiences in mind, including customers, the general public, and primarily employees. By and large, these goals are usually reached. Still, it isn’t why people buy from companies – even those with rock-solid mission statements. The Three Real Reasons People Buy from Companies (And None are Its Mission Statement) People often choose to buy from a company not because of its mission statement, but because of the personal benefits they perceive they will receive from the product or service. This is because consumers are primarily motivated by their own needs and desires, and are more likely to make purchases that they believe will benefit them in some way. The key reasons why customers buy from a business are generally centered around three main areas: Saving time. If a product or service can save a customer time, whether it’s by making a task easier or more efficient, it’s likely to be well-received. Saving money. If a product or service can save a customer money, either by being cost-effective or by providing long-term savings, it can be a significant selling point. Making money. If a product or service can help a customer make money, such as by increasing their productivity or providing a new income stream, it can be a strong motivator for purchase. This perspective aligns with the view that customers are primarily self-interested. They are more likely to be concerned with the benefits they will receive from a product or service, rather than the broader mission or values of the company providing it. This is why it’s crucial for businesses to communicate the benefits of their products or services to potential customers, and to ensure that these benefits are aligned with their customers’ needs and desires. Ways To Show Your Customers How Your Products and Services Make Their Lives Better Of course, if it is true that people buy because they get something valuable out of it, then how do you show them how your products and services benefit them? Well, businesses can show customers how their products and services make their lives better by focusing on the benefits and outcomes rather than the features or functionalities of the product or service. This can be achieved through several strategies: Personalization. Tailoring the product or service to meet the specific needs of the customer can greatly enhance their experience and show them the value of the product in improving their life. Customer testimonials. Sharing stories of how the product or service has made a positive impact on other customers’ lives can be a powerful way to demonstrate its value. This can help potential customers see the product or service in a real-world context and understand how it could benefit them. Clear communication. Expressly communicating the benefits of the product or service can help customers understand how it can improve their lives. This can be done through product descriptions, marketing materials, and customer support interactions. Value proposition. A strong value proposition that clearly states what the product or service does and how it can improve the customer’s life can be very effective in showing the customer the benefits of the product or service. Demonstration. Showing customers how the product or service works and how it can be used to improve their lives can be very effective. This can be done through product demonstrations, tutorials, or user guides. Customer support. Providing excellent customer support can help customers see the value of the product or service in their lives. By quickly and effectively addressing any issues or concerns, businesses can demonstrate their commitment to customer satisfaction and show customers how the product or service can make their lives easier. Also, continuous improvement. Constantly improving the product or service based on customer feedback can show customers that the business is committed to making their lives better. This can build trust and loyalty, and encourage customers to continue using the product or service. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at (602) 541-1760, or, if you prefer,

How to Spot Bad Business Ideas to Avoid Wasting Precious Time

April 19, 2018 No Comments

Whether you’re running a business currently or looking for a business idea to get started, you definitely want to avoid bad scenarios. While there are stories of companies defying the odds and becoming successful, these are few and far between. The reality is the majority of new businesses fail. (Or established businesses trying something new that ultimately fails — think New Coke.) How to Develop Good Business Ideas Before we get into the bad, let’s take a quick look at some good ideas. If you’re already in business for yourself but want to branch out, there’s probably a reason why you feel that way. Take a little time to seriously reflect on this notion. Ask yourself if you’re no longer interested in your core product and/or service. Also, think about a product or service that can really complement your current offerings. If you want to make more money sooner as an entrepreneur, you need to learn how to spot dead-end business ideas and say no to them so you can focus on the good ideas. This is especially important when the ideas are coming from your inside your own head. It’s easy to be protective of your own ideas because they feel like your own children, but you have to learn to be more objective if you want to create something profitable. —Entrepreneur.com You can seek objective advice from your peers. Other business owners might easily spot something that’s totally eluding you at the moment. If you’re not already a business owner but want to start the process, then look to your favorite hobbies. Imagine how you can monetize what you most enjoy. Ways to Spot Bad Business Ideas If you’re looking for a business idea, you want to settle on something with real promise. But, how can you peek into the future? Well, there is no magic crystal ball to foretell precisely what will unfold. However, there are some red flags which typically accompany a bad idea: It doesn’t meet a real need. If the idea doesn’t immediately solve a problem or fulfill a need, that’s a giant warning sign. After all, how do you market a product or service that doesn’t meet an actual need or take care of a problem? It isn’t scalable to other markets. Another problematic scenario is if you can’t imagine how it will scale to a larger market. While this doesn’t mean you need to abandon it, it certainly means you need to rethink the idea. It can’t stand out over the competition. Ask yourself if the idea can compete in the real world against its closet competition. If you can’t readily answer that question, you’ve already got a big problem. It’s too complex to easily explain. Any business idea you can’t explain in an elevator-pitch style will typically experience a lot of problems. Put another way, if you can’t explain it in simple terms, consumers won’t understand what it is or how it works. How do you spot bad business ideas? What other advice do you have to avoid wasting time with different ideas? Please comment and share your thoughts and experiences! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Want More Sales? Simple. Create a Problem, then Solve It.

October 22, 2021 No Comments

One impressive attribute to Apple’s incredible success is solving problems. More particularly, “creating” a problem and then offering an attractive solution. Distilled down, this is the art of identifying a common issue or need, and then supplying a fix or a fill for said need. Steve Jobs was a master of this strategy. Prior to the introduction of the iPod, consumers simply didn’t realize they had a need for an entertainment device that could store thousands of songs. The story goes like this. Steve Jobs was out for a run when he experienced problems with his MP3 device. This led to inspiration, which he realized that if consumers were given a far superior — albeit much more expensive alternative — they would leap at the chance to buy it. Of course, history shows that Steve Jobs’ instinct was spot on. Another epiphany struck him again and Jobs responded, ordering his company to get to work on a new state-of-the-art device. This, because he feared that competitors would take his successful iPod and integrate it into a multi-functional phone. Of course, this is the birth of the iPhone. Perceived Necessity is also a Mother of Invention The business lesson that people can take from these instances is that there are always consumer needs. Even if they are somewhat obscure, they still exist and are waiting to be filled. Both of these electronic devices prove that there was indeed consumer desire for such things, even if the public didn’t yet know they wanted them. …when developing new products, processes, or even businesses, most companies aren’t sufficiently rigorous in defining the problems they’re attempting to solve and articulating why those issues are important. Without that rigor, organizations miss opportunities, waste resources, and end up pursuing innovation initiatives that aren’t aligned with their strategies. —Harvard Business Review Both products became huge sales successes, as everyone now knows. But at the time, they were a gamble. After all, these were largely luxury items and did not completely match a fundamental, utilitarian purpose. However, their form factor and marketing made them irresistible to consumers and that’s why they’ve gone down in history as two of the most remarkable innovations of their era. How to Identify a Problem to Solve and Sell Although it might seem like too big a feat to pull off, you can take a page from the same playbook. (This is especially true if you’ve been in business for many years, but even that amount of experience isn’t necessary.) The point is that there’s always a need for some type of improvement, innovation, or invention. The question really comes down to necessity and appeal. Here are a few suggestions for how to identify a common problem to solve and sell its solution: Identify a problem or need. Let’s begin with the super obvious — the need to hone in on a need or an issue that can be filled or fixed. If you’ve been working in your industry for some time now, this might even be a common gripe of yours. Think about some type of flaw or problem and that should get you started. Structure an attractive solution. Once you’ve identified a need or problem, it’s time to come up with a workable solution. Of course, this is a lot easier said than done, but the time and effort could be worthwhile in the end. Keep in mind that there are certain elements that can really help your solution sell. For instance, being appealing, convenient, cost-effective, and applicable to a wide enough consumer base to make it valuable to the public. (Or, even to others inside of your own industry.) Test out your new product or service. After you’ve come up with a methodology or product, it’s time to test it out. You should experiment in at least a few different settings, with various scenarios applied to the test environment. This will help reveal any shortcomings and will also provide inspiration as you see it in action. Testing will also help you determine its overall viability in the marketplace. What other suggestions do you have for identifying a want, need, or issue and coming up with the right fulfillment or fix? 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.