Small Business…Myth or Fact

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Myth #1…Customer’s are Always Right… 

A huge myth…if that were the case, nobody would be in business. Customers are certainly important, as that’s where all the sales come from. But, you can’t manage a business that way as customers are fickle and it’s a sure way of putting yourself out of business.  However, the customer is still the customer, therefore empathy and tact are required. As long as the customer knows what your policies are and you set their expectations correctly, customer satisfaction will be elevated.

Myth #2…Make It, and They’ll Come… 

How many times have I heard this line. Some of the biggest companies in history have tried this philosophy and it has failed. Just because a business owner creates a new widget, doesn’t mean customers will line up at the door to buy it. To be a sucessful entrepreneur you need to be the best marketer on the block. A first class sales organization and sales channel beats a whacky product idea anytime. Unfortunately, many business owners fall in love with their products instead of attacking the real challenge.

Myth #3…Sales Revenue is the Key…

Nope! How many times have small business owners proudly told me what their sales revenue is, as if that’s the magic key. Yes, sales are important, but as measure of performance it has no meaning. The only real measure is cash flow…cash flow…cash flow. It doesn’t make any sense to keep growing the company if it’s continuing to lose money. It’s not rocket science, but if there’s less money at the end of the month than at the beginning…failure follows…and maybe bankruptcy.  Build customer value and focus on cash flow and profitability and the financial rewards will follow.

Myth #4…Social Networks Drives My Marketing…

Unfortunately, social media does not work well for all companies and in some cases it’s simply a waste of time. Demographic analysis is the key…you have to find out where your customers they come from and how they interact with each other. It’s then possible to be highly selective and to focus on using a specific social media tool that they fraternize and become part of their conversation. Once you’re in their circle of influence, the rest is easy.

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