When you’re launching a startup, it may seem as if everyone wants to offer you advice. But how can you differentiate the good advice from the bad advice? While everyone’s startup journey is different, there are certain myths that go around about startups that can lead your company to failure. Many of these myths state that certain goals are impossible, or that certain actions should be avoided. Entrepreneurs who follow these pieces of advice will be stifled and will not reach success. Here are a few myths about startups that you should not believe:
“It’s impossible for your small company to compete against the big companies in your industry.”
If you’re a budding entrepreneur, someone has probably asked you how you are going to compete with the big names. This should not be the focus of a startup. To reach success, entrepreneurs should commit to their product expertise and focus on their business goals. The reason you should focus on product expertise is because many of the larger brand names do not prioritize this aspect of their business.
“The best product always wins.”
While a top notch product is important, the company also needs to support the product. If you have a good product, you will have an excited staff and early customers, but if customers find the product or company too difficult to use, the company is likely to run into trouble. Once the hype dies down about the product launch, you need to have a solid sales strategy. It’s crucial to implement the best service practices so that customers feel supported and want to come back instead of searching through the competition.
“If you want to gain market share, you need to lower your price.”
As an entrepreneur, you may think lowering your prices is the right choice. But the best way to succeed is not to be known for the product with the lowest cost, but for the value of your product. The company should focus on providing the most profitable business model long-term. The happiness of your customers, and the rate of repeat sales, does not strongly correlate to having the lowest price tag.
“Your company’s growth is going to plateau.”
As growth hits, it is completely normal for sales goals to decrease. But this doesn’t mean you should settle. Keep encouraging your company to reach new goals. When you are figuring out the rate of growth that your company is able to sustain, you should also consider the most important scalability requirements and questions. Think about your long-term potential. Are you addressing only a limited part of the market, and therefore limiting the success your company can reach? You should also consider who you can partner with and trust in order to stay committed. Lastly, think about your value, and whether customers will stay interested in future products and releases from your company.
“Your company culture will change with growth.”
Some people may tell you otherwise, but it is possible to retain your startup culture, no matter how large your company gets. A good way to keep the values that your company had in the beginning is to accept and encourage company feedback. You will also need to focus on maintaining engagement and loyalty. If you take a long-term approach to maintaining your company culture, then things will not have to change.
Growing as a company is challenging. Many people will give you advice that can derail you, but you just have to remember to keep striving for success. If you work hard and think about how your company will perform in the long run, anything is possible.