September 24, 2009 | Category: Business Advice | Tags: Small Business Tips

Research shows that the majority of small businesses fail. While there are many market forces that cause this, one key reason may be because these small businesses are making decisions based on inaccurate information. In particular, look out for these myths, which have led many business owners astray.

Myth: ‘Doing it yourself’ is a good way to save money.
Fact: ‘Doing it yourself’ is a good way to waste money and time.

From web design to ad copy writing, many business owners believe that they should be masters of many specialized fields. Unfortunately, the result is often shoddy work and an unprofessional image. Not only will doing everything yourself most likely lead to a lower quality result, you will have to take valuable time away from actually building your business. It is usually more cost effective to outsource work to experts where needed so you can focus on doing what you do best.

Myth: Lower prices mean more people will buy.
Fact: High quality means more people will buy.

As a small business person, you stand very little chance of undercutting industry giants. However, there are certain benefits you can offer, including better service and a higher quality, more personalized product. Because you are a smaller business with less red tape, you have the additional advantage of being able to quickly respond to market demands. Don’t undermine your bottom line by charging too little. If people only bought the lowest priced option, there would be no designer jeans or high-end automobiles.

Myth: Marketing is an ‘extra’ expense.
Fact: Marketing is the most important aspect of growing your business.

Many business owners mistakenly think that marketing or using marketing logos is an option. As in, you can do without it in a crunch. Nothing could be further from the truth. Marketing is in fact the only way to keep customers walking in your doors (or clicking on your links). Without a steady flow of customers, even the best product or service won’t be noticed or bought. The only way to create sales is develop a message and deliver that message to the right people. Professional marketing consultants know how to do this.

Myth: The broader the marketing campaign, the better.
Fact: Targeting is key to success.

Why spread your message among the masses when you can instead focusing on hitting the people most likely to buy into your product? This process of identifying and marketing to the small segment of the population who are likely to support you is known as targeting. Before you open a small business, you need to think about who your target market is. What do they enjoy? What do they think? Most important, what do they buy and why?

Myth: A great product will sell itself.
Fact: People who patronize a small business are buying more than just a product.

Having a solid, marketable product is very important—in fact, it’s crucial. However, people who shop at a small business are buying more than that product. They are buying an experience. They are buying a public image. They are buying the story behind the product. Having a solid image and a compelling story is just as important to success as having that unique product.

Have you ever believed any of these myths? If so, you aren’t alone. Many business owners buy into these fallacies and suffer the consequences. If you want to beat the odds by having a successful small business, you will need to avoid the pitfalls that most other small business owners fall into. Don’t let your dreams become yet another statistic.