When you’re starting a business everyone wants to give their two cents on what they think you should do to get going and become successful.  You’re family tells you how to develop a product; a friend gives suggestions on how to handle your financing; even someone you’ve just met has an opinion on what you should do.  Sometimes this advice is invaluable and other times you just want to tell that person where to shove it.

I subscribe to this website that writes posts on everything having to do with business.  Not long ago they wrote a post on “The Worst Advice for Small Business Owners.”   I thought their post was very interesting and wanted to share it on my site.

1. Hire People You Know. Everyone has had a great coworker that was successful at their job. However, that does not mean that they will be successful at the position in your business.  Try not to hire someone just because you know them, but rather because they fit the specific expertise that you’re trying to fill and have the skill set you need for your business to grow.

2. There is No Room for You in the Market.  The key to business success doesn't always hinge on finding a completely empty field; rather, it’s how you define your company and its place in the market. Starbucks wasn't the first company to sell coffee, but they did revolutionize the coffee shop by selling an experience along with a caffeine fix. Still, numerous boutique coffee shops are able to open and thrive today, even though there's a Starbucks around the corner.

Rather than struggling to come up with a brand new idea, take a look at your target industry and see where there's a void to be filled. Figure out the best possible way to fill that need and run with it. You don't always have to blaze a new trail, but you need to know who you are.

3. You Have to be Cheaper than the Other Guys.  Many young companies feel the pressure to discount their prices heavily in order to win business. While customer acquisition is important, attracting customers at unsustainable price levels will just result in a race to the bottom. I’ve learned that you’re better off in the long run to focus on how to bring more value to customers, rather than simply slashing your prices. After all, someone will always be able (or willing) to absorb a lower cost than you. You'll need to find a new way to stand out, and then work as hard as you can to be exceptional in those differentiating areas.

4. Social Media is Free. Sure, you don’t have to spend a dime to join Facebook, create a Twitter account or start a blog. But, I think a more apt comparison is that social media is free like a puppy. It may not cost much to bring a shelter puppy home, but from day one, it's an endless whirlwind of training, toys and treats.

Likewise, social media is far from free once you factor in the blood, sweat and tears it demands. From developing fresh content to keeping up conversations, social media requires nonstop commitment once you start. Unless you consider your time (or the time of your employees) worthless, then there’s a significant cost involved with social media.

5. You Have to Spend Money to Make Money.  This one can be tricky.  Many people think that spending money is the same as investing in the business.  Well it isn’t. Certainly, money can scale a business faster, but only when you spend money on those things that will produce more money in return.  Sometimes creative thinking and strategy work far better than a checkbook.

People will always give advice – some will be good, some bad.  The key is to never forget that you are running the show. Final decisions are always up to you.  That way there is no blaming someone else for bad advice.

If you are a small business and are looking for a new merchant service provider, please feel free to contact us.  We’d love to be able to provide you with a no obligation statement analysis.  

Email us at dsherman@selectbankcard.com or call us 385.212.4285.