10 Of The Worst Pieces Of Advice Given To Entrepreneurs
As you move through life, there are plenty of individuals that will offer you advice. There will be some people that offer you advice that might not actually know what they are talking about, unfortunately. In addition, there might be entrepreneurs who offer advice to individuals that don’t realize that the advice might be outdated or misguided. Here are some of the worst pieces of advice given to entrepreneurs.
1. There Are No Friends In Business
Business can undoubtedly be cutthroat, but it doesn’t mean that human beings cannot bond over common interests or beliefs. You will find that at every level of business, there are many entrepreneurs that have created strong friendships that last a lifetime.
2. You Need A VC
Some of the most powerful companies in the world have benefited from venture capital funding, but that doesn’t mean that it is absolutely required. These days, there are so many ways for a business to grow.
Your business might go viral on social media, for example, for various reasons, which might lead to a tremendous amount of success. In addition, businesses also might be launched thanks to a GoFundMe, or because of individual investors. You don’t need a VC for your company to be successful in 2019.
3. Reinvent The Wheel
There are many individuals that believe that success means that you have to come up with an entirely new idea. However, that truly isn’t the case. You might find that you can scale an incredible company simply by improving on certain aspects of a sector, rather than “reinventing the wheel”. If you are solving a problem that can benefit society, there’s a good chance that you can gain traction in the market. This certainly doesn’t require that you come up with “new” ideas.
4. You Must Cast A Wide Net
There are plenty of people that will tell you that one part of business is reaching out to as many people as possible. There is certainly nothing wrong with networking or targeting a large demographic, but doing business with “anyone” can prove to be a grave mistake.
After all, if you choose to work with questionable influencers, it might end up costing you in the long run. In addition, businesses can succeed with a niche network, and there is no need for everyone in the world to love your product or service.
5. Go On A Hiring Spree
Many people believe that a company is only successful if it hires a certain amount of people. While it might be true that some of the most powerful corporations in the world boast thousands of employees around the world, it doesn’t mean that this is necessary.
There are startups that have been able to scale without going on a hiring spree. In fact, going on a hiring spree can often lead to disaster – and you might find that the money that you spend hiring employees ended up depleting your overall resources.
6. It’s Okay To Exaggerate
There are businessmen that seem to believe that it’s okay to lie about your business. There are some that believe that many businesses exaggerate, so why not do the same? Of course, this creates an entire atmosphere of mistrust that might end up costing you everything. If you are consistently lying about projections or numbers, you will find that many people start distancing themselves from your company, or not trusting your word.
7. Don’t Take A Loan
There are plenty of entrepreneurs that have been able to secure funding, and have never been able to take a loan. That’s quite a great feat for them, but it doesn’t mean that this is the only way to success. Some of the most successful entrepreneurs in the world have started their journeys because of a loan.
One notable example is Barbara Corcoran, who turned a $1,000 loan into a New York City real estate empire. This certainly isn’t valuable advice in any means, although you should certainly make sure that the loan works in your favor in terms of terms and conditions.
8. Give Out Equity
You will certainly need to hire people when it comes to scaling your business, but this doesn’t mean that you should be giving out equity to every employee that comes on board. If you are offering a substantial portion of your company to everyone that is interested – how will you truly lead your company?
After all, why would you feel motivated to take your company to the next level if you won’t even be reaping the benefits? This is clearly not advice that you should take seriously. There’s nothing wrong with offering equity to the RIGHT employees, for the RIGHT reasons – but giving away equity is not an intelligent approach to business.
9. Never Say No
It doesn’t matter what sector or niche you are in, there are always many nightmare clients that exist. You will have to learn to say no to certain business if you want to truly be successful, and those who tell you take all the business that comes your way are certainly wrong. You might find that the time and energy spent on one nightmare client can end up costing you “good business” that might help scale your company quicker.
10. You Need An MBA
Education might be the way to a successful business for many people, and that makes sense. After all, an MBA can be a great way to understand business strategy and the way that businesses operate, but it doesn’t mean that an MBA is required for success.
There are high school dropouts and college dropouts that have grown to become some of the most successful people in the world. You should remember that an MBA doesn’t necessarily guarantee success in any way.
Everyone has their own path, and there are some that might read this list and feel as though this advice actually works for them. However, there are certainly flaws with all of the tips listed here, and entrepreneurs should keep an open mind as to why some of this advice may hurt more than help.