Small-Medium Business – Are You’re Myths Misleading You?.

Introduction

My dictionary defines “myth” as “ancient and traditional story  … which may try to explain … customs”. Every business has myths. That’s normal. But it’s not normal for them to be treated too seriously. What happens in your small-medium business?

General Myths

These abound in all business. “People hate change” is typical. If it were true, we’d still be hunter gatherers living in caves. We aren’t. But you’ll still hear the mantra “people hate change” as an excuse for failing to embrace new and different ideas.

Company Myths

“This business has always put customers first”. “Our name means quality” “No job too large or too small”. “Our staff are our lifeblood”. There are thousands of clichés like these. They’re never tested. They’re rarely even questioned regardless of the amount of contrary evidence. And they’re hard to measure. Reconsider the slogans that drive your small-medium business. And test their validity.

Customer Myths

These almost always start with “Our customers …” then go on to describe what the speaker believes or would like to believe about customers. Sometimes they are based on some survey or research B52 carried out sometime in the past. They may simply reflect what people believe for whatever reason. Nevertheless customs will have developed because of them.

If you want to know what your customers think, believe, like, dislike, prefer or expect you must ask them. While you’re doing so ask why they chose you, how they heard about you and how highly they value your products and services.

Check your sales records too. They contain lots of useful data about who buys what, how often and how much they spend. If you don’t collect and update customer information regularly, you’ll be driven by myths sooner or later. And your small-medium business will suffer.

Case Study

A medium sized business client company of mine performs building maintenance. When I first started working with them a decade ago, they were always chasing large corporate maintenance contracts. Each time I suggested they concentrate on home maintenance, they told me, “No: it’s less than 20% of our business.” Finally they did the research. Home maintenance was responsible for 42% of business and the major single service source. It comprised less than 20% of the business 10 years earlier. Times had changed. But myth distorted fact.

The management team thought long and hard about this. “If home maintenance is responsible for 42% when we’re not concentrating on it,” they mused, ” how much could it comprise if we were serious about it?” They decided to concentrate exclusively on home maintenance. They are now market leaders.

System Myths

You’ve heard those lots of times. “This process/procedure/system/technique has served us well for a long time…”  That statement alone should send shivers down your spine. It may not be a myth. It may be true. But it may be holding you back because it’s an excuse to stick with outmoded and inefficient systems. Always search for ways to improve your systems and procedures. Encourage your staff to do the same.

Advertising Myths

Marketing and advertising are myth ridden areas. They deserve a special mention. Never spend a cent on any form of advertising or promotion unless you’re prepared to measure the results and act on what your measurement tells you. If you don’t, the advertising myths won’t just mislead you. They’ll engulf you.

The Danger For Small-Medium Business

Myths are dangerous in any business. But in small-medium business they can be very destructive. In big business, a myth can be bad for business in one area but it usually doesn’t threaten the whole enterprise. In small-medium business a myth can have a profound influence of the overall business. The “building maintenance” case study is a good example.

Busting Myths

People believe myths. That’s why they’re sometimes hard to shake. Only fact can dispel them. Test everything. Measure everything. Make review a standard part of day to day business. Share results with staff and seek their inputs and suggestions. Bust the myths.

Conclusion

Think deeply. How often do you hear employees promoting myths in your business as if they were facts? What untested, unmeasured customs influence your business? They exist in many areas of small-medium business. Seek them out and challenge them. Always remember, fact dispels myth.

What To Do Now

What myths drive your business? What’s always accepted as “gospel truth” that needs to be challenged? Next time an employee says, “Our customers …” or “That’s never worked for us …” or “We’ve always…” say “How do we know?” For starter, check to see precisely how you’re measuring the results of your advertising and promotion.