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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Are You Focused or Frantic?

April 8, 2017 No Comments

The world of business is often a fast-paced one, an environment which requires attention to many details and dynamics. Those new to the entrepreneurial experience are usually shocked by the sheer amount of things which need to be done. In response to these needs, some business owners try to attend to more than one matter at a time, a solution often called “multitasking.” Unfortunately, abiding by the adage “killing two birds with one stone,” is a counterproductive solution. When you multitask, you lose, plain and simple. Talking on the phone while picking-up groceries or walking the dog while replying to an email seem like smart time-saving ideas, but, they aren’t. You’ll forget the loaf of bread or to run spell check before hitting “send.” It’s a matter of attention, which is to say a matter of fact. We’re not biologically engineered to do multiple things at a time, which is why it’s tricky to pat your head and rub your belly simultaneously. When multitasking is attempted, your attention is less attentive to each task, and something inevitably gets missed. How to Maintain Your Focus in Business Let the nearby quote sink-in for a moment. How professional athletes, trained engineers, scientists, physicians do what they do best isn’t done by trying to do many tasks all at once. They use a process, an incremental approach to everything in a focused manner. When you play a game of chess or go into the gym, you do so with purpose. No matter what the experience, there is purpose, even watching a movie you’ve seen countless times has purpose–to unwind or just to re-live a feeling. It’s not a big surprise that big league baseball players can hit a pitch far better than the rest of us. Research on the game’s best hitters has shown that they have excellent hand-eye coordination and can respond quickly to visual cues. Indeed, one of the keys to a superior ball player’s performance is excellent vision and focus that allow him to see a baseball perfectly as it travels at high velocity toward home plate. —Forbes You’re in business for a purpose and a good one at-that. Regardless of what you sell, your aim is to fulfill a need and derive personal satisfaction, as well as a sense of accomplishment. Those are admirable but what’s probably holding you back from delivering your best is you’re not giving everything your best, you’re simply rushing through one task to get to the next–to rush through it as well. Your argument (read: rationalization) for doing so is that you simply don’t have enough time. Time management is an art-form, but it wouldn’t be as high a priority if you did not have to redo what you just did…again. By focusing, you’re not wasting time, you are ensuring thoughtfulness, quality, and attention to detail–the list goes on and on. What you need to do to succeed in business is be in the business of taking care of business. This doesn’t mean taking an important phone call while on the treadmill and juggling to eat your lunch without spilling it. The person you’re speaking to will certainly know what you’re doing, even though he or she cannot see you, precisely because your attention is distracted. That does not equal good business practice, it undermines and worse, inflicts damage. If “location, location, location,” means everything in real estate, then, focus is of the same importance in business. Here are some things you should be doing, every single day: Eliminate distractions. It’s not rude if you close your office door or go outside to sit on a bench to concentrate, it’s healthy for your psyche, and, for your business. Although I have a home office, I purposely operate out of a professional business office that provides the environment, the accountability and allows me to be more focused and productive. Distractions are the hobgoblin of business, the less, the better. Batch like tasks. If you read each email as it arrives, you’re doing it wrong. There’s an unseen, yet, really felt harm in doing so, because it breaks your focus. Batch similar tasks and schedule these in blocks. An example is email as the first, unfinished tasks as the second, new tasks as the third, you get the idea. Do what’s most productive and works best. Prioritize according to importance. Our natural inclination is to do what’s easiest or what we most prefer, but we also are quite aware of the consequences. If you’re doing this, it’s why you don’t feel much personal satisfaction and like you’re not really moving your business forward. Put everything in its place. You might call it O.C.D., but it’s actually very smart to have a place for everything and put everything in its place. I have very specific spots on my desk for client project priorities, my own business and personal business priorities, prospects, etc. Essentially, the only piles on my desk are those that are high priority so that my focus is aligned. The time you spend looking for this or that might be small, but add-up all those moments and you’ll marvel at the immense waste. One last suggestion is to harness the power of your body’s healing power–sleep. It’s hard to be an entrepreneur but it’s even more difficult when you’re making it more difficult by not getting a good night’s sleep. Instead of watching the late night news, I started going to bed earlier. As a result, I have been getting up earlier to go to the gym, which provided energy and clarity for creativity and productive focus during my day. Turn off the technology, let your brain rest, and rejuvenate each and every night. [shareaholic app=”follow_buttons” id=”26833294″]

How to Set Business Product and Service Prices

May 16, 2017 No Comments

Pricing products and services is difficult for any new business owner. Though it might seem to be a simple equation, that’s hardly the case. There are quite a few factors which go into setting your price or prices. Even within industries that buy from manufacturers to sell directly to consumers, there are variables from one vendor to another. Location is part of pricing, not just distance, but also demand and population. Services aren’t much different in this respect. Let’s say that you’re a dietitian, and you work with various doctors, hospitals, and gyms over a large geographic region. You travel quite a bit, so you go from big cities to rural communities. Chances are excellent you’ll charge more for your professional services in the metropolitan area than you will in sparsely populated rural areas. How to Set Business Product and Service Prices One important aspect to keep in mind when setting prices for goods and/or services, is they are promises to your customers. A price reflects value and consumers are careful about which products and/or services they choose. This means that price, while a very important factor, isn’t the only consideration consumers take into account when purchasing. For instance, a big bag of individually wrapped chips complete with select flavors is priced for $6.99. Next to it is a generic store brand priced at $4.99. Based solely on price, you’d opt to save $2 and go with the store brand. After all, you’ll save money and the chips will taste the same. Price is the most important factor in determining profit. Yet countless businesses fail to get their pricing strategy right. The price you charge for your products or services is directly related to your Cost of Goods (labor & materials to produce the product/service), your overhead and the competition or demand. Your focus needs to be on your desired Gross Margin. Price is a major way you communicate your firm’s value in the marketplace. Yet many small business owners set prices arbitrarily or sheepishly follow the crowd. —Bloomberg Business Now as you wind your way through the grocery store you visit the meat department. Inside the display case there are four ready-to-cook hamburger patties made mouthwatering with fresh bacon bits and cheese and is priced at $12.49. Right across the aisle in the frozen section there’s a 10-count box of plain, frozen hamburgers for $9.99. Suddenly, saving $2.50 doesn’t seem worthwhile and you splurge because the fresh, mouthwatering ready-to-cook hamburgers are simply irresistible. The point, of course, is perceived value — you’ll have to base your business’ product and service prices on their value. However, that’s just one factor of many others which go into pricing. Here are some steps you can take to help you set the right price: Learn about demand in your area. No matter how wonderful your product or service might be, if there’s no demand for it in the area, it won’t sell. Think about the old sales joke, “Selling ketchup popsicle sticks to customers in white gloves.” Obviously, people wearing white gloves have no need for such a mess. The same holds true for demand in your area. If you’re selling snow shovels, it’s should be to consumers in climates where it snows. Check out competitors’ pricing. This is a simple way of learning what consumers will pay for a product or service. Of course, you should only rely on established prices by flourishing businesses. Always factor-in costs. There’s no getting around the fact that it costs money to run a business. Even freelancer contractors have operating costs. For brick-and-mortar operations, there’s rent, utilities, insurance, inventory, employee pay and benefits, and other costs. Be willing to discount. One way retailers sell products is by offering discounts. This is a great strategy, if it doesn’t wipe-out your margin, or it’s a one-time deal to establish a relationship for future business. Don’t undercut simply to attract business. A big mistake that some new to business make is to undercut competitor pricing, only to learn the hard way they can’t deliver. After all, it does no good to attract business if customers aren’t receiving what they expect. Pricing is a science and an art. The science is an equation based on your Labor + Materials (Cost of Goods) divided by your desired Margin or divisor. If you desire a 40% Gross Profit Margin (the amount left over after you cover your Labor and Materials), then your divisor is 60% and not a 40% markup. Using a 60% divisor based off your Cost of Goods will yield a 40% Gross Profit Margin. A mistake many businesses make is to mark up their Cost of Goods which yields a lesser Gross Profit Margin closer to 28%. We call this “Profit by Accident”. Because it is feasible to guarantee your business makes a profit, we developed our “Profit by Design” strategy. Contact us for a complimentary consultation to review your pricing strategy and learn more about “Profit by Design”. Now, what about the art of pricing? The art is in the research, testing, creative marketing and demand for your product or service and how you promote its value. The art is in your ability to pivot and massage all of the components (labor, materials, overhead, marketing, value, customer perception, etc.) to work together. Combined, you will develop a pricing strategy that proves out in your bottom line profits and more money in your pockets! Pricing is a delicate balance, but with some research and a bit of critical thinking, you’ll be able to set prices for your business’ products and/or services. Do you know and understand your pricing strategy, or is yours Profit by Accident? [shareaholic app=”follow_buttons” id=”26833294″]

Hey, Small Business Owners Do You Know Your Blind Spots? If Not, Here’s How to Tell and Become Better Leaders

December 21, 2023 No Comments

Hey, Small Business Owners Do You Know Your Blind Spots? If Not, Here’s How to Tell and Become Better Leaders Running a small business is like embarking on a voyage into uncharted waters. While the journey is exhilarating, it also comes with challenges and hidden obstacles—commonly known as blind spots. These are areas where leaders might lack awareness, and navigating through them can be the key to becoming a more effective and insightful leader. The Blind Spots You Just Can’t See Imagine navigating a dark forest, unsure of the path ahead. That’s what it can feel like for small business owners, often unaware of the hidden obstacles and opportunities lurking in their blind spots. But fear not, intrepid commerce explorers! By shedding light on these blind areas, you can transform your leadership and guide your business to new heights. What are Blind Spots? Blind spots are areas of your leadership and business where you lack awareness or insight. They can be internal, like personal biases or emotional triggers, or external, like neglecting customer feedback or overlooking market trends. These hidden flaws can hold you back from making informed decisions, building strong relationships, and achieving your full potential. How Small Business Owners Can Identify their Blind Spots Seek diverse perspectives. Surround yourself with advisors, mentors, and employees who offer different viewpoints and experiences. Their insights can illuminate areas you might have missed. Embrace feedback. Don’t shy away from constructive criticism. Actively seek feedback from customers, employees, and partners, and listen with an open mind. Analyze data. Numbers don’t lie. Utilize analytics tools to track performance metrics and identify areas where your strategies might be off-track. Conduct self-reflection. Take time for introspection. Reflect on your leadership style, decision-making process, and interactions with others. Ask yourself: What are my strengths and weaknesses? Where am I prone to biases? Step outside your comfort zone. Challenge yourself to venture beyond your usual routine. Attend industry events, network with diverse individuals, and explore new ideas. How to Conquer Your Blind Spots Once you’ve identified your blind spots, it’s time to take action: Seek education and training. Invest in leadership development programs or workshops to gain new skills and knowledge. Delegate tasks and empower your team. Trust your team members to handle areas where you lack expertise. This frees you to focus on your strengths and address your blind spots. Embrace continuous learning. Never stop learning and adapting. Stay informed about industry trends, new technologies, and best practices. Develop self-awareness practices. Implement mindfulness exercises, meditation, or journaling to become more aware of your thoughts, emotions, and biases. Build a culture of open communication. Foster an environment where employees feel comfortable voicing concerns and offering feedback without fear of judgment. The Rewards of Leadership Clarity Conquering your blind spots leads to a multitude of benefits: Improved decision-making. Clearer awareness leads to more informed choices that drive better results. Enhanced relationships. Building trust and rapport with your team and customers fosters a positive and productive work environment. Increased innovation. Embracing diverse perspectives and new ideas fuels creativity and innovation. Greater resilience. Self-awareness allows you to navigate challenges and setbacks with greater adaptability and confidence. Empowered leadership. Leading with clarity and self-understanding inspires your team and guides your business toward success. Remember, the journey to self-discovery is ongoing. Embrace the challenge, learn from your missteps, and celebrate your successes. By constantly seeking feedback, cultivating self-awareness, and taking action, you can transform your blind spots into your greatest assets. So, step into the light, small business owner! Your leadership journey awaits. 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 602-435-5474, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.