Business Myths Debunked!

The business world is full of myths. It is important to identify the fact from the fiction as this may aid in your overall decision making and ultimately the success of your business. Here are a few myths we think are important to get into perspective:

  The customer is always right

Customers may think they are an expert in their area, but salespeople should be more knowledgeable about the products and services they are selling and extremely skilled in matching the right product or service to the need. Obviously, your customer's experience matters, but bending over backwards to give them what they want instead of what they need doesn't make business sense and could be detrimental to profit margins. This doesn't mean you shouldn't still treat customers with the utmost respect. Instead, you should put confidence behind your view and have an informed discussion with your customers to table all the ideas so hopefully logical decisions can be made.

  Customers will come to you

If only this were true; it would make things so much easier! Even businesses that operate in markets where customers actively search for products will find this myth to be false. There’s so much ‘noise’ in most markets from competing companies and information that there’s no obvious path for a consumer to take. You need to get out there and tell your customers why your company and products are best through marketing activities and ensuring you build the distribution channels so they can access it.

  Sales is the most important number

There is a saying, sales is vanity, cash flow is sanity! Whilst sales is one metric to measure sales performance, it doesn’t provide the full picture of profitability. If a business is making thousands of sales weekly, but making no profit, evidently this is not sustainable. Cash flow and balance sheets aid in overall decision making and provide insight into where margins could possibly be had.

  Teamwork is about building consensus

Whilst consensus means individuals are aligned, this may be for the wrong reasons. It may mean your teams are just going along with the direction for an easier life. Businesses should aim to create high performing teams, those that challenge the norm and bring new ideas to the table. Collaboration, rather than consensus is key, working together to achieve the goals.

Customers only care about low prices

Whilst some companies structure their business model on offering ‘everyday low prices’, there is always a need for quality products and services that customers are prepared to pay for; Whether that be for the name, or other value offerings such as environmental credentials or after-sales support. The key to success is knowing which customers you are targeting, what your offering is and why it is unique and base your marketing and sales tactics around this.

  Spend money to make money

Throwing money at a problem may not be the answer! Analyse the situation thoroughly and determine the cause and effect. If sales are down, it doesn’t necessarily mean you need to spend more on advertising, but perhaps your price point is wrong, or there are availability issues. Spend money carefully and measure each investment’s results.

  If you need help to gain an accurate perspective, contact us at help@pureblueocean.com