Common Myths About Starting Your Own Small Business

Starting your own business can be a freeing experience. Being able to focus on what you are passionate about on a daily basis, and earning an income from it, sounds like a fantastic way to make a living. More often than not, it is. However, before you jump in and start building a business from scratch, you should examine your own beliefs about entrepreneurship. There are many myths out there about starting and running a company, so you should be sure that you begin the process armed with facts, not fiction.

You Are Your Own Boss

While this is true to a certain extent, in other respects it is the biggest myth of them all. In fact, many people who run their own companies joke that they traded in one boss for many. A boss is someone who assigns work, evaluates your progress, provides feedback and additional opportunity for work, and ensures you get paid for the work completed. In this respect, those who are self-employed have several bosses they must answer to. Your clients become your boss, as they are the ones you submit work to and depend on for payment. Instead of striving to keep one person happy with your work, you must now impress each and every client if you want to remain in business.

Good Products Naturally Find Customers/Investors

Another common, yet potentially destructive, myth is that if you make a great product or offer a fantastic service, your customers are naturally going to find you. Unfortunately, without a solid marketing plan, and the funds to back it up, your product cannot find your target audience. Many new companies with fantastic products or services fail simply because they are unable to find their market. Even if you have a storefront in an area with heavy foot traffic, you still need to put time, money, and effort into your marketing plan. Make sure you offer amazing and prompt customer service, as word of mouth is a powerful thing. If your customers are happy, they are going to tell their friends, encouraging them to use your services as well.

You Need A Business Degree or Investors to Run a Successful Business

Contrary to popular belief, you do not need any type of formal training or education in the business field to start your own successful business. While prior knowledge and training in the business field certainly helps when you are starting your own business, they are by no means prerequisites. Some very successful entrepreneurs did not get tehri start in the business world. Instead, they mastered the industry or field their business operated within and were able to build success from there. If you are worried about navigating the complex business world, consider taking a few classes at a community college or online.

Only Young Individuals Succeed at Becoming Entrepreneurs

You do not need to be young to succeed in business. In fact, recent studies indicate that most successful entrepreneurs are over the age of forty. The number of people between the ages of 55 and 64 who have decided to start their own companies has also gone up over the years. When you are young, it is the perfect time to gain experience and knowledge in your chosen field. There is nothing wrong with waiting until you have learned more about the industry before jumping in, but this is by no means a necessity or a requirement. It is worth doing market research, to be sure that your product or service does have an audience.

You Need a Lot of Money to Start a Business

There is no denying that starting your own company costs money. In many cases, it can cost even more than you think. However, you do not need to have a ton of cash on hand to ensure that your company succeeds. Instead, you should focus on spending the money you have in wise ways. For example, when you are first starting out, it is always a wise idea to invest in marketing and product quality before trying to introduce new products to existing lines.

If you are short on funds, you can always consider crowdfunding or taking out a modest loan from the bank. These are both great options to find short-term funding for marketing or other start-up costs. Before you start your campaign or head to the bank, take the time to thoroughly research your anticipated costs so you have an exact figure in mind.

Entrepreneurs Have a Lot of Free Time

Many people think that running your own company means you have a lot of free time. While it is true that entrepreneurs do not work traditional hours, nothing else about this myth is accurate. Most people who start their own companies work very long hours to keep the company going, especially when it is first created. Once you have established a customer or client base, it does get a bit easier. Those who work for themselves can often choose their own hours to a certain degree. However, they still need to be present and accountable to new and existing customers. The exact degree of schedule flexibility running your own company gives depends on the type of business and your industry.

You Can Start a Business Entirely on Your Own

Another persistent myth is that it is possible to start a business entirely on your own, without consulting with anyone else. This myth is not only false, it could be very damaging to your company’s success and eventual bottom line. While you do not need to hire employees right away, you should take the time to consult with several professionals. You need to get legal advice, so you know how to arrange your company and conduct business properly. It is also a good idea to speak with an accountant. They can give you advice and input on how to arrange your finances and cash flow. It is also important to understand which business-related purchases you can write off, along with the best way to keep track of your income and expenses.

Marketing is Expensive

It is true that marketing is a major business expense. This is particularly true in the first few months, when you are trying to get your name out there and build a loyal following. It does not need to be expensive, however, nor does it have to break your budget. Making wise marketing choices can help you maximize the funds you have while reaching the widest audience possible. Consider using things like social media marketing and Google AdWords. These are both cost-effective ways to target your ads, reaching only those customers who are likely to be interested in your products.

There are many myths about starting and running your own company. Some of these myths deceive budding entrepreneurs into thinking that it is an easy process, while others may deter people from ever getting into the field. Understanding the truth can prepare you for the hard work that lies ahead. At the same time, it can encourage you to get into a field you love with open eyes. What are a few myths about creating your own company that you used to believe?

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Common Myths About Starting Your Own Small Business

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