In order to stay positive, entrepreneurs need to lie to themselves a lot. Unfortunately, this can get them in trouble when they have improbable expectations and surprising outcomes. Here are the 7 biggest lies and the truth about what to do instead:
- Sales will be better next month. Many entrepreneurs believe that sales will always increase in the future. They reason that with more revenue, there will be more profit. The truth is that they don't change their sales and marketing efforts to give their company a better chance actually increasing sales. To boost revenue, companies need to be there when customers want to buy. Only a systematic sales and marketing effort will accomplish this.
- The next big customer (or product or employee) will change their company forever. The belief is that the next big break will take their company to the next level. The truth is that progress in companies typically build slowly and success doesn't usually have a tipping point. Think about the essentially building blocks that will grow the company step by step.
- Big money means taking big risks. They read the urban folklore of the few who took big risks and made billions. The truth is that most people fail. The success in business comes from taking small steps, evaluating the results, and taking the next action.
- Competitors are slow. Many entrepreneurs think that their competitors are not innovative and can't react quickly. Tell that to Blockbuster and Borders. The truth is that there will always be a competitor thinking up a better mousetrap. The entrepreneur needs to know what their competitive advantage will be when that day comes.
- Keeping the financials in their head. Many entrepreneurs believe that they do not need to review their company financial statements. The truth is that most of the time their expectations do not match what is actually going on. This is why it's important to read and understand these statements every month.
- Getting paid last in their business. They reason that they are investing in their company and this is how they justify living off of savings while running a start up. The truth is that if an entrepreneur does not draw a livable wage from their company, they have a hobby, not a business. Always include the owner's salary in the monthly budget.
- Being busy means being productive. Many entrepreneurs believe if they are busy at work then they must be adding to the value of the company. The truth is that with all the distractions and interruptions that can enter an entrepreneur's daily life, they need to be very disciplined that they focus on projects that will make a deep impact on the company. Pick the two things that need to get done today and complete them before starting any other task.
What lies do you tell yourself?