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MARKETING MYTH MYTH # 8 My product is so good, I won't need to market it. Word of mouth works, but it's slow. If you have to pay for overhead, staff or inventory, you need to have a better plan than "word will get around!" You'll also need some kind of budget for marketing. It doesn't need to be a lot, but it has to be budgeted in terms of man-hours (if you're going to do it yourself) or dollars. Even the business practice of the finest architect in the world can fail if he doesn't market correctly, and fails to bring in new business, regularly. Poor marketing will result in no new business coming in the front door. An absence of sales can be sustained, but unless you have really deep funding, not for long. No sales, nobody eats

CATALOG MYTH MYTH # 9 It's easy to make money with a catalog. Sure, gather a few products together, have a few thousand catalogs printed up, buy a list, and you're on your way to make millions. Don't bet the ranch quite yet. I owned a catalog company once, and it was tough. Our P & L was on the line with every single mailing we did. I got stuck with products that didn't sell well, and weren't profitable enough to put back in - yet I still had them in inventory (my friends and relatives loved me that year!) . Pricing was always a big question mark: should we be discount, or high end - or somewhere in between?* And I've had about every trick imaginable pulled on me by list vendors. It's a tough road to make a lot of money with a catalog, my hat's off to the ones that do. It can be done, but it ain't easy. *I settled my pricing: We were below market price on items easily shopped and that invited price comparison shopping, and higher on unique and hard to find goods.

INVENTOR'S MYTH MYTH # 10 I'll just get this one out into the marketplace, I'll make money on the next one. How many inventors have said this to me? Most of them, I think. Without money and profits, there won't be a next one. At least, I've never seen a 'next one' under this circumstance. By the time it's all said and done, it's too much work and too many hours to bring a product to market and not be profitable. Then to say you're going to do it all again, ugh, you've got to be nuts. The myth? Without profits, you won't be doing it again. You need to make a profit, and it's reasonable to expect to do so for your investment of time and effort. You need two essentials for any business: sales and profits. Anything else can wait.

CUSTOMER'S MYTH MYTH # 11 I'll call back. This is the big customer myth. If you didn't handle it right the first time, don't hold your breath. They won't. SALES Myth MYTH # 12 It's easy to sell this product - everyone will buy it. that's easy to say until you try to sell it. Sure, you can sell anything, but it may cost you $20 to sell a $10 product. Take out an ad for $500, and you can sell 50 ten-dollar items to generate enough cash flow to pay for the ad.