Does money really make money? Is it better to avoid the business in which there is a lot of competition? Do you really have to be a smooth talker and do you need to know how to sell? Is a good idea worth fortune? There are a lot of sayings about the business – which of them are based on truth?

Myth One: “Money makes money.”

If money could really reproduce all those who have won millions in a lottery, they would be millionaires today, and the truth is that they arent. The U.S. recently traced the fate of all the millionaires who suddenly got rich by winning big money on the lottery, and it turned out that only three percent of these “millionaires by chance” really has secured a high standard of living. Statistically speaking, the rest of the lottery millionaires after two years were left without a penny!

I remember when fate, that brought the winning $ 46 million in 1984 by a young Irish solicitor, living in Chicago, who after a few years was already bankrupt. The universal truth is that nothing is more wasted than money and even a good lawyer could lose everything.

It is true that in most cases of interest to develop a financial contribution is needed, but money is just one of many required components. One example of when money really does make money is a cash deposited in the bank and earning interest.

The fact – in many cases the ability to carry high volumes of business and can provide excellent profits, while under-funding may be the cause of failure. But there is also high possibility of starting your own business without much cash. Selling your skills do not always require funding. No money can be a kind of blessing. If you start with a limited budget you may be more disciplined. The situation will force you to work harder to be more mindful about each client, to look less obvious and less beaten path, you’ll waste less time and materials. Maybe you have more ideas and you will be better at controling costs, prevent yourself from costly decisions.

Myth Two: “Being fair in Business does not pay”

The best example of how erroneous is the statement can be successful Sears – the largest network of department stores in the United States. This giant company having 880 stores with annual turnover of 40-50 billion dollars based its entire existence in a uniquely conceived integrity. Sears is a legendary business card guarantee “If you’re not one hundred percent satisfied with our product, we will return you cash or exchange the item for another.” This guarantee applies not only to televisions and refrigerators, but for clothing, jewelry, furniture, and even cosmetics.

Is it possible to offer such guarantees and have a good profit? Theoretically, the company could ruin quickly. Here’s what the solicitor told me from one of the shop:
- Most of the goods that we sell has a manufacturer’s warranty so the cost of it is given back. People trust us and rarely abuse this confidence knowing that every article has some limits of, most of the complaint is justified. From time to time there is someone who wants to unfairly take advantage of Sears to replace old, worn-out product with new, however we do it all without discussion, as our opinion gives us huge profits.

Myth Three: “Avoid Business where there is much competition,”

Entry into an area where there is a lot of competition is the easiest and safest! If there is competition on the market, especially if the competition is successful, it means that there are also the needs of consumers. And if they are necessary, there is always room for additional business, which, however, in some way must be distinguished from the others.

It is worth to look at competitors and analyze: how to do what they do – but better. And most importantly – what customers think it would be better service or product? The new company, to break through should offer better quality or lower price, better warranty or faster execution service, pleasant service … and perhaps even all of this together!

Fact: One of prime firms that conducted the study say that the greatest number of millionaires in the U.S. are people who have earned the basic services, which is a lot of competition – that owners of dry cleaners!

When there is a lot of competition, it is easier to stand out, because customers are not only necessary but also established comparative scale and is able to distinguish a good service or product from the trash. While the hardest is to convince potential customers to ensure that they should start to spend money on something new. Since so far have coped without it, what you want them to offer – there is serious risk that they will be handled without this on! Even if your idea is great …