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MARKETING <br /> •Bogus Business Ideas <br /> popular Ideas That Raise Havoc <br /> If it sounds new, exciting and intrigu- dotcom would change businesses <br /> ing, we want to believe it. We also overnight. Countless companies and <br /> assume it's true. While there may be investors went for broke on the word <br /> exceptions to every rule, there aren't of hoards of 23-year-olds. The trip <br /> many in this case. Several examples tell from going for broke to going broke ...::.. <br /> the story. was dramatic and short. <br /> We've all heard the term "customers We are always ready to go for the <br /> for life." Even though the idea flies in simple solution, the instant answer <br /> the face of the reality, there are those or the magic potion. Each one <br /> who cling to it uncritically, believing sounds exciting, but most are also <br /> that in some miraculous way they can bogus. All appear profound, but they are <br /> hang on to customers forever. But ask also in error. Here are seven popular <br /> any salesperson if this is possible and business ideas that get companies in <br /> you'll hear the truth. trouble. <br /> Some customers last longer than 1. Valuing Value-added. This one <br /> others, of course. But they all have a life continues to enjoy undeserved popular- <br /> n. To operate on the premise that ity. What has allowed it to survive for so <br /> ey are forever is delusional. "Cus- long? The answer may lie in the fact <br /> tomer for life" lasted as long as it did that it is meaningless. <br /> because we wanted to believe that the Most of what companies view as <br /> impossible was possible. value-added is either what they are <br /> Then, of course, there was Quality doing already or is worth so little it is <br /> Management (QM). This was touted as devoid of value. Why is value-added <br /> the panacea for catching up with the always what a company, not the cus- <br /> Japanese and getting ahead of everyone tomer, wants to believe is valuable? <br /> else. Companies large and small clawed Value should play a key role in doing <br /> their way on to this bandwagon. At one business, of course. That's what custom- <br /> engineering firm, work stopped as the ers expect. But the focus should be on <br /> employees spent a year, mostly in what customers value, not what we <br /> meetings. think is important. That is inherent <br /> When management figured out that value, not something that's added. <br /> little work was getting done, QM disap- "Brands that have a simple promise <br /> peared quickly and silently. It all hap- and have delivered on that promise for a <br /> pened because we wanted to believe long time top the fall 2001 Equitrend <br /> that QM was the solution. best brands study," reports Research <br /> And who can forget the highly paid Alert, February 1, 2002. Once again, <br /> guru who advocated creating chaos in Craftsman Tools is at the top of the <br /> the workplace. By his standards, a heap. Its lifetime, no `questions' asked <br /> company like Enron is destined for guarantee resonates with tool buyers. <br /> 41imited success while Wal-Mart is That's built-in value, not value-added. <br /> aded for the scrap heap. Creating 2. Over emphasizing profits. <br /> chaos caught on because it was new, There's nothing wrong with the word <br /> different and exciting. profit. It's what business is all about. <br /> Then we wanted to believe that Not surprisingly, most business owners <br /> April, 2002 Business & Industry MAGAZINE 41 <br />