IGNORE THE CROWD, GO THE OTHER WAY
“The herd instinct is clear in nature and just as clear in business.”
Following the crowd is, unfortunately, human nature: think back to the silver buying frenzy. Silver climbed close to $40 an ounce a few years ago. Urged on by advertising, people were encouraged to “buy now”, and the rest is history. Silver today sells for less than half. By following the herd, first time silver investors bought when the price was high and then sold after the price dropped.
As small business owners you must be cautious about treading the same path as the majority. The most common herding trends occur in two areas:
- First is when a new business opens. Frequently the product or service is a copy of an existing business that is perceived as doing very well.
- The second is a change an existing business makes in the product/service being offered or the marketing methods used because another business is doing well with it.
Both of these examples have the potential to succeed, but only if the product or service being offered is different than the product/service that is being duplicated. In other words, differentiation is the key word.
Mediocrity is another “herding instinct”. That occurs when a business is surviving, or as it is called “holding my own.” No one has broken free from the herd thus the market is shared somewhat equally by all the participants.
“Always look for a way to lead the herd. Become the disruptive force in your industry.” Nick Petra
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