Unearthing Common Myths About Starting a Business
There are a few common myths that the small business owner faces when they’re going to start their startup. Many of the things that one hears about starting a business are not true-they are just misconceptions or urban legends that have often been repeated that many people now believe to be true.
Some people believe that there are investors lining up to loan money to their startups. While venture capitalists may exist, financing startup companies is not their primary area of focus. Their intention of investing in a company would be to make money by investing in such companies, but since most startups do not do so well in their first years, they hesitate to do so. One of the rules that investors use is that the business they want to invest in should have a great three year track record in place. It’s very difficult for startups to match this criterion. However, all is not lost for the small business owner. There are several other choices that they can pursue to raise the much-needed capital. You can secure financing from the small business administration under the group 7 (A) programs and 504 programs. You can bootstrap your organization from your individual finances, if you are not a huge fan of loans. There are many entrepreneurs who have turned to bootstrapping, and it has turned out to be a great success in their opinion.
Many people believe that starting a business allows them the freedom to choose their working hours. Entrepreneurs are known to be one of the hardest working individuals on the planet. Unless you have tons of money saved up that you don’t need your business to succeed, you give up any freedom you have when you open your small business. You may have some flexibility in allotting your free time but starting a company will definitely consume much of your free time.
Others believe that when they establish the right business that it sells itself and they do not need a marketing or business plan to thrive. You cannot substitute a business plan and having a well thought out marketing plan to sell your product. Business plans are essential in ensuring that you understand what it’ll take for you to be successful and that you have an outline of how to achieve your goals and getting investors.
Now, with the tips listed above, you have some of the information that you need as you consider a business startup. You might get loans from the SBA or get some investors to back you up but recall that with money, you must always have your facts clear. Ensure that you have done extensive research on all that goes into establishing a startup before you invest any money in any business.