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 the business they wish to get in should possess a great three year track record in place. It’s very challenging for startups to meet this standard. However, all isn’t lost for the small business proprietor. There are other alternatives that they can pursue to raise the much-needed capital. You can secure a loan from the small business administration under the category 7 (A) programs and 504 programs. It is possible to bootstrap your company out of your personal finances, if you’re not a huge fan of loans. There are several entrepreneurs who have turned to bootstrapping, and it has proven to be a great success for them.
Many people believe that starting a business allows them the freedom to choose their working hours. Entrepreneurs are proven to be one of the hardest working people 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 could possess some flexibility in allotting your free time but starting a business will certainly use up much of your spare 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 can’t substitute having a business plan and a well-orchestrated marketing plan to sell your product. Business plans are critical in getting investors and ensuring that you understand what it will take for you to be successful and that you have an outline of how to achieve your goals.
Now, with the tips listed above, you have some of the information that you need as you consider a business startup. You may get loans from the SBA or even get some investors to back you up but remember that with money, you should 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.