When you start a business, suddenly everyone wants to advice you – your mom tells you not to take risks, your former boss tells you that the market for your product is flooded and your financier tells you to pay yourself last.
Well, the thing is not all this advice is worth following. Below are some examples of our favorite worst business advice from our list of favorites.
Bad Advice 1: Follow your passion and the money will start trickling in with time
In real sense, business is about creating products that add value to your customers lives and not products that simply fulfill your passion or ego. In as much as we would like to encourage you to be passionate in whatever you do, we tend to think that the passion of the customer should always come first; yours second.
Best Advice: Find a way to blend your passion with the real needs of your market
Bad Advice 2: The Customer Is Always Right
No, the customer is confused and unaware of his true needs most of the time. If you listen to him (or her) all the time, your business will collapse under the weight of sky-high expectations.
Best Advice: Customers tend to demand for more than they actually want to pay for – try to strike a balance between your profit goals and their expectations.
Bad Advice 3: The Market Is Too Crowded
Ask yourself, was Samsung the first company to sell mobile phones in the world? – definitely no. Was Toyota the first car manufacturer in the world? – again no. In other words, no matter how crowded the market-place seems to be, there is always room for those who want to blaze a new trail.
Best Advice: The market will always be crowded and all you need to do is adopt a unique marketing approach that will keep you several steps ahead of competitors.
Bad Advice 4: Invest in an MLM to grow your money fast
MLMs, also known as pyramid schemes or HYIPs are short-lived investment plans that require you to invite more friends to onboard. Most of these schemes purport to deliver extraordinary return on investment… such schemes dont last long.
Best Advice: MLM schemes aim to steal the money invested – in fact, every cent earned from a such a scheme is one stolen from a future investor.
Examples of MLM schemes that have failed in Kenya over the last few years include:
Bad Advice 5: Pay yourself last
You are the most important “employee” of your company and you deserve to paid handsomely. So, always reserve the juiciest part of the cake for yourself. You owe it to yourself and your company to pay fair value for your valuable work.
Best advice: Don’t sell yourself short: your business should support you, not the other way round.