myths about starting a business

15 Myths About Starting a Business You Need to Know

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There’s no denying that starting a business is a decision that no one should take lightly. When you launch a new small business, it takes a lot of time, effort, and money to start and keep the momentum going until it becomes self-sustainable and viable.

You’re probably reading this article because you have put some serious thought and consideration into starting a business. But, there are some points about the business world that you aren’t sure are fact or fallacy.

While this isn’t a “how to start a business” type of blog post, what it does is describe some of the biggest misconceptions that new entrepreneurs face when attempting to start their businesses. Check out these common myths you need to know:

Myth #1: You’ll Get Rich Quick

Many people assume that starting a business is a sure-fire way to financial freedom and colossal wealth. Sadly, the reality isn’t as attractive as the fantasy. Starting a business is easy, but growing it to the point where it’s sustainable and pays you a regular wage is hard.

For most entrepreneurs, it can take years before their businesses grow well, and they can afford to hire employees and operate from commercial premises. If you’re thinking starting a company will help you get rich quickly, you’ll find the opposite is true!

Myth #2: You Don’t Need Insurance

As you can imagine, there are many regular business costs that you must factor in when calculating how much profit you make. One of those costs is insurance. The problem is, some new business leaders don’t feel they need insurance coverage.

The truth is, all businesses, whether they are sole proprietors or corporations, need some insurance coverage. In some cases, it can even be a legal requirement. Plus, cover like key man insurance is a must if you want to ensure your firm survives if you’re no longer around.

Myth #3: Starting a Business Is Too Risky

It’s no secret that the COVID-19 pandemic has meant lots of established businesses have had to shut their doors. COVID-19 is one of the many reasons why some people will say starting a business is too risky.

Most things in life have risks. Starting a business undoubtedly has some risks (i.e., there’s a risk it might not work out). But, if you have a sound business plan and the right vision and foundations, that risk is very minimal.

Myth #4: Not All Investors Will Help Your Business

When it comes to starting a business, some people need a lot of capital before they can begin operating. Those individuals may ask for financial support from investors in exchange for a share of the company and profits, for example.

If there is money on the table, you should always consider the deal. But that doesn’t mean you should always accept deals. Sometimes, you may find that certain offers could potentially force you out of your own business, especially if things go wrong.

Myth #5: You Need to Operate From an Office

Did you know that one common misconception touted by some people in the business world is that your startup won’t have any credibility unless it operates from commercial premises? The truth is, you don’t need an office if you can start your business from home.

Some of the world’s biggest corporations started life from a founder’s home. Apple, for example, began out of Steve Jobs’s bedroom and garage at his family home in Los Altos, California. Today, Apple is a multi-billion dollar corporation.

Myth #6: You Need to Hire Employees

Another myth about starting a business to keep in mind is how some folks might tell you that your business won’t grow quickly unless you hire some employees. There is a small element of truth in that statement, but what you need to know is staff aren’t always essential.

Some startups manage just fine with the sole proprietor doing all the work. It’s only when those businesses grow to the extent that there’s too much work for one person that hiring people is the natural step forward for growing the company.

Myth #7: You Can Start a Business With Nothing

While it’s possible to start a business on a shoestring budget, no one can technically do so with no money whatsoever. You need to keep in mind certain costs when starting any business, such as professional subscriptions, energy bills, and insurance.

Even if you started a sole proprietorship business from home, you’d still need to pay for some costs. The only way you could start a business with nothing is if someone bankrolled you and didn’t expect you to pay them back. But that’s unlikely to happen for most people!

Myth #8: You Don’t Need a Business Plan

Business plans are essential for any organization, irrespective of its size. As a startup business, you’ll probably need to secure funding if you plan on purchasing stock, machinery, equipment, or professional subscriptions with someone else’s money.

Even if you don’t need to borrow money for capital purposes, a business plan is still relevant as it’ll help you map out your objectives, projected earnings, and the reasons why you’re starting a business in the first place. Make sure you create a business plan before launching.

Myth #9: You Don’t Need Any Help

Believe it or not, one of the strangest business startup myths out there is how sole proprietors don’t need any help when they launch their brands to the marketplace. The truth is, all entrepreneurs need help when they launch – even if they think they don’t.

That’s because support from seasoned professionals like business mentors can ensure new entrepreneurs start their businesses on the right footing. Plus, getting help from other people means you have someone to share any concerns or ideas with during your journey.

Myth #10: You Can’t Afford to Hire Professionals

There will undoubtedly be times when you can’t carry out specific processes or functions alone in your startup business. Despite your best efforts, you need the help of professionals experienced in areas where your knowledge and skills are lacking.

You might not think it, but hiring the talent you need isn’t necessarily going to be out of reach. Not all industry professionals charge thousands of dollars before providing you with the service you need. You’ll always find pros to help you, irrespective of your budget.

Myth #11: You Should Do Everything In-House

Did you know that the days of needing to hire armies of people in a business are over? These days, most companies, large corporations, and sole proprietors outsource many of their business functions and processes to third-party organizations.

They do so because there are significant cost savings to be made. Plus, outsourced service providers act as extensions of your business and can even present themselves to your clients with your branding. You can comfortably outsource most things from sales to IT.

Myth #12: You Should Keep Your Ideas a Secret

Let’s set the scene. You’ve come up with an idea for a product or service, and you think it’ll be the hottest thing to hit your industry this year. You’re sure that it’ll be an attractive proposition to your potential customers, and no one else has thought of your idea.

Should you keep your idea a secret until you’re ready to launch your business? Probably not. The reason is simple: you have no way of knowing if your idea is viable unless your target audience can try it out and give you feedback!

Myth #13: You Need to Sell Overseas

There’s no denying that the Internet makes it easy to sell products and services abroad. Online marketplaces, for example, enable buyers to transact with sellers and purchase items without even needing to call them or organize anything.

But that doesn’t mean you need to sell overseas. In fact, you should concentrate on promoting your brand and its products and services to the domestic market first. That way, you can expand abroad as your home market sales grow.

Myth #14: You Don’t Answer to Anyone

Just because you call yourself a CEO or your company’s president doesn’t mean you don’t answer to anyone. The truth is, everyone in a business has someone that they answer to. In your case, you answer to all kinds of people: investors, the government, and your clients.

Yes, you are the founder and head of your business. But, without customers, you wouldn’t have a business. Plus, without investors, you wouldn’t have a way to grow your business and purchase expensive machinery to make your objectives reachable.

Myth #15: You Don’t Need to Network

Online and offline marketing and advertising will get you some way towards establishing a sustainable business. However, you still need to network with people in your industry. Why? Firstly, you could get presented with new potential revenue streams.

Secondly, you’ll meet people that can help you grow your business through mutual partnerships, for example. Lastly, you will build your professional network and help to spread your brand’s awareness in your industry.

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