FROM CONCERNS ABOUT financial stability to worries about not being good enough, the entrepreneurial journey can be filled with anxiety-inducing moments. In my experience, many of these fears are misplaced, and it’s often the opposite of the reality I observe. Let’s take a look at some of these areas and find out what I think the real truth is.
1. Not having enough money coming in. (real issue: Too much going out.)
Cash flow is a concern for any store, but the focus of the problem isn’t always where you think. The reality is often that too much money is going out, rather than a lack of sales bringing it in. Many business owners overspend on unnecessary expenses, too much inventory being the most significant, which restricts cash and creates its own headache. It’s quicker to buy a bad item than it is to sell it. An open-to-buy budget can help cure this issue.
2. Charging too much. (real issue: Most don’t charge enough.)
Despite the overwhelming evidence of what others are selling things for, I have a hard time convincing many store owners that they simply aren’t valuing their product or themselves highly enough. To overcome this fear, business owners should spend more time looking at the comparison data we compile that shows how stores are performing in areas such as markup. By understanding the market demand and setting prices that are both competitive and profitable, business owners can find the sweet spot that will attract customers and generate revenue without sacrificing their prices.
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3. Not getting enough new customers. (real issue: Not doing enough with current customers.)
Marketing for new business is an expensive exercise. Repeat business and word-of-mouth referrals are critical for long-term success and can come at a fraction of the price. Business owners should focus on building relationships with their existing customers by using the data they already know about them. By providing exceptional customer service, offering personalized experiences and maintaining open communication channels, business owners can turn satisfied customers into loyal brand advocates.
4. Not getting enough opportunities. (real issue: Not being discerning enough with the ones they have.)
From a perceived lack of good sellers to struggling to find good staff, business owners often feel they don’t get the choices they need. In reality, we are spoiled for choice but don’t always identify these choices when they are there. As Stephen Jobs famously said, innovation is about saying “no” to 1,000 things.
5. Feeling that everyone else understands their finances better. (real issue: Fewer people understand finance than you think.)
Business owners can gain a better understanding of finances by educating themselves, seeking advice from financial professionals and learning from their own experiences. To overcome this fear, business owners should take advantage of the resources available to them and remember that they are not alone in their journey.