4 Common Pieces of Business Advice That You Should Ignore

Announcing your intention to start a business is likely to open the floodgates to a deluge of business suggestions. Most everyone has had some experience running a business, watching someone else run a business, or at least working for a business, so many feel that these experiences qualify them to give advice. Unfortunately, the vast majority of this advice is not sound and should absolutely be ignored. The following are a few commonly doled out pieces of advice that fall into this category.

1. Don’t Take Risks

From the announcement of your intention to start a business, there are likely to be some that advise you not to do so in the first place and site the failure rate of small businesses and other scary statistics that make your venture sound like a bad idea. Starting a business is risky, but it can also be very rewarding to follow your dreams and be your own boss. Every project that you take on and growth level that you achieve will be risky, too. Be cautious, but follow your instincts and don’t be afraid to take risks.

2. Go Big or Go Home

On the flip side of the risk coin is the other half of self proclaimed business advisors that tell you to “go big or go home.” The truth is that most of the best businesses start off in a well defined niche that caters to a specific need that no other business is filling very well. By establishing value, the business will gain loyal customers that will happily promote the business to friends and family. Based on this momentum, the business may be able to “go big” if you want. Trying to skip this step can result in failure.

3. Formulate a Comprehensive Business Plan

Creating a business plan is not a bad idea right at the outset, as it may help you to organize your thoughts and establish systems that will get your business running. However, spending too much time working out the finer details of the business plan or too much effort trying to strictly adhere to the plan can be a roadblock to your success. Time spent revising and changing the plan can actually be put into establishing your business. Effort spent on adherence could be put towards adapting to changes.

4. Offer Cheaper Services or Products to Draw Customers

Offering cheaper services or products may draw customers that are looking for a deal, but it may affect your earnings. Customers that are looking for the cheapest rate may also be drawn away quickly if someone else undercuts your price. Once you have fallen into the trap of low prices, you have also devalued your business, so any price increase may not be taken well. Instead of striving to offer the lowest prices, strive to offer the best service or product, as this will help to attract a loyal customer base.

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