Let’s Bust Popular Myths
I identified three main beliefs that I had taken on board without questioning and realized that they represented serious obstacles in building a successful business. Here is what I found was not only holding me back, but I observed these beliefs also among my clients, preventing them to build business to their fullest potential.
Work smarter not harder.
Despite this mantra being repeated almost daily, it doesn’t make it true. If your turnover, profit, or client satisfaction isn’t as high as you want it to be, it does not matter how much you fine-tune your processes to create your products or provide your services. The outcome is ineffective and no degree of increased efficiency can get you there.
Increasing efficiency to work smarter is always good, but you need to be sure that you are doing the right thing in the first place.
Looking for hidden assets and skills in your business and augmenting or replacing your existing processes with them can change your business.
The fee for a service / product depends on the time, efforts, and resources required to achieve the desired outcome.
This is flat out wrong and you leave money on the table. Allow me to give you an example to illustrate my point. Let’s imagine you own a diamond mine and unearth two rocks from deep below. One is a rough diamond and the other is an ordinary rock. Would you fetch the same price for each when you sell them? Surely not. Yet the amount of labor, expenses for mining equipment, operating fees and so on are identical for each.
If you follow the myth that effort equals price, the ordinary rock should be as expensive as the diamond. And if your costs of mining the diamond goes down, because you get a better deal on labor costs and mining equipment, the diamond should get proportionally cheaper.
Many struggling businesses operate this way. And the better they work, they less they can earn, because if they sell time, they will soon hit a ceiling. There is a limit to time and to how much you can charge per hour. It doesn’t scale well.
Charging based on the value created, is not only better for your business, but also more ethical.
The client is always right or never say NO to a client.
A client who calls on you to provide a product or service that they have identified will help them is not always right. Merely providing what a client asks for may work in the short term. It’s a short sales cycle and money is quickly in the bank. But in the long term, your reputation could suffer if the client needed something else and you knew it, but prefer to stay silent and run with the money.
Ironically, you’ll leave a lot of money on the table.
Some businesses use this tactic to get a foot in the door with the aim to show their real expertise later. This re-positioning rarely works. From the client’s perspective, instead of being an expert, you are a delivery driver. Instead of hired brains, you are hired hands – a commodity.
Experts comfortably say NO, if it is in their client’s best interest.