The 9 Worst Pieces of Business Advice You'll Be Told

Starting a business is one of the most exciting things you’ll ever do. If you’re successful, you could set yourself up for life. But when you tell people about your plans, you’ll get a wide range of tips, not all of which work very well. People love to give business advice, even if they have never successfully started their own small company.

So, how can you separate the terrible advice from the helpful suggestions? The first strategy is to consider who you’re speaking to. If the person has achieved something similar to your goal or they know a lot about your industry, it’s likely that they’ll have valuable insights. If not, you might be better off ignoring their recommendations. Read on to discover nine of the worst pieces of advice entrepreneurs are often given.

The 9 Worst Pieces of Business Advice You’ll Be Told

1. You Are Too Young/Old to Start a Business

Many people have a picture in their head of what a businessperson looks like, and if you don’t fit that image, they don’t believe you can succeed. That’s why so many aspiring entrepreneurs are told that they are too young or old to start a company. But this is not true, and there are plenty of examples of people who didn’t stick to the traditional path and either started their company in their teens or early twenties or in their sixties and beyond.

For example, Fraser Doherty started his jam company SuperJam when he was only 14, and he has sold millions of jars in the UK, Europe, Japan, and Korea. On the other hand, Wally Blume founded his famous ice cream company, Denali Flavors, in his mid-50s, and the business went on to make an eight-figure annual profit. If you have a great idea, don’t hesitate to get started, and ignore the people who say you’re too young or old.

2. You Need Hundreds of Thousands to Get Started

Some businesses start with huge amounts of funding, but this isn’t necessary when setting up your company. In fact, many entrepreneurs are moving away from debt and looking to set up businesses with as little money as possible. This is possible in a wide range of industries. If you’re looking to establish a cafe or restaurant, why not start by offering your catering services to people at events and raising money this way until you can afford rent?

People selling a product can start online before they have access to a physical store, and they can use social media to promote their items at a very low cost. You can also barter with other companies in your area. Remember, many businesses create a lot of waste, and they will be happy to give this to you or swap it for your product or service.

3. Just Keep Going, and You’ll Succeed

At first glance, this piece of advice sounds good. After all, you need a certain level of determination and tenacity when starting a business. What’s more, everyone goes through hard periods, and just because you don’t succeed right away doesn’t mean your idea or product is no good. But simply pretending there isn’t a problem won’t work.

Instead, it’s important to analyze why you’re not as successful as you had hoped and then to make the necessary changes. Experiment with different marketing strategies, discuss your idea with people who will give you their honest idea, and fine-tune your business plan. That way, you can avoid being stuck in a loop of failure, and you’ll get closer to your goal, one step at a time.

4. Give Up and Get a Proper Job Instead

On the opposite end of the spectrum, there’s likely to be someone in your life who doesn’t understand your vision and will advise you to simply give up and go back to a regular job. While there’s nothing inherently wrong with working at a larger company, this likely isn’t what you’d like to do at this stage in life. Don’t let other people’s fears and bad business advice hold you back.

Keep pursuing your goal, even if you don’t earn as much as you would with a day job initially. If you’re worried about money, you can always get started before you quit your full-time role or work part-time while you set up your business. Alternatively, you can work overtime for a year or two before starting your company, so you have a cash cushion that can carry you through the difficult first years.

5. Just Build It, and They Will Come

It’s true that the best products and services are generally those that succeed in the long run. But just because you’ve created something special doesn’t mean you’ll automatically have enough clients or customers. There are lots of options out there, so you have to make sure people see your brand consistently and that there is a good reason for them to select you over all your competitors.

Do thorough market research before you launch your product. Iron out any small flaws so you can present something as close to perfect as possible. Once you’ve launched your company, employ consistent marketing strategies that engage your followers and make it easy for them to remember you.

6. Buy Assets to Reduce Your Taxes

Once you start to make a profit with your business, you’ll have to pay taxes. Some people are told to buy business assets to stay in a lower tax bracket, but this isn’t usually a good idea. It’s not worth purchasing something for tax reasons unless you need the piece of equipment anyway.

This is because, even if you’re in one of the highest brackets, you’ll receive less than half of the asset’s value back from the IRS. Buying unnecessary equipment is never a good strategy.

7. The Old Way Is the Best Way

Older business owners often get very excited when speaking to new entrepreneurs, and they do their best to give advice. But this can be problematic because they might not understand the current market conditions or how industries have changed.

Always think carefully about advice given by people who have been out of the game for more than five years, and consider whether it is relevant to your situation. Some suggestions, such as attending trade shows, advertising in newspapers and billboards, and working with agents could work, but they could also cost you a lot of money unnecessarily since there are cheaper online options available.

8. Do It All On Your Own and Save Money

Many people start out doing everything by themselves. This works well at the beginning, but it isn’t the best long-term strategy. Experts exist for a reason, and you’ll be able to drastically improve the quality of your company by working with them.

As you start to make bigger profits, consider hiring a marketing and sales team, a financial planner, research and development specialists, customer service specialists, and an admin team. You might not need all of these employees at once, but outsourcing some of your work can help you grow your company more efficiently.

9. Just Follow Your Passion

Many of the most successful entrepreneurs have based their company on something they love or something that means a lot to them. But simply having a strong passion isn’t enough.

You also have to think about the practicalities of your business and make sure that there is a demand for what you are offering. As mentioned above, market research is crucial when determining whether your idea is viable. Sometimes, a product or service most people would consider boring is much more profitable than something flashy and spectacular.

Unfortunately, bad business advice is shockingly common. Your friends, family members, and coworkers might not understand what you’re trying to do, or they might be repeating something they heard from a successful businessperson but didn’t fully understand. Reach out to us at David vs Goliath Podcast to connect with other entrepreneurs. We are a community of like-minded people who understand the challenges and rewards of setting up a small business.