Clearing Up Some 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. A lot of the stuff that one hears about starting a company are not accurate-they’re just urban legends or misconceptions which have frequently been repeated that many people now believe to be accurate.
Many people believe that there are investors lining up to loan money to their startups. Financing startup companies isn’t their primary region of focus even if there are venture capitalists. Their goal of investing in a company is always to make money but since most startups do not do so well in their first years, they hesitate in investing in such businesses. One of the rules that investors use is that the company they would like to invest in should possess an excellent three-year track record in place. It is very hard for startups to meet this criterion. 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. If you are not a huge fan of loans, you can bootstrap your business from your personal finances. There are many entrepreneurs who have turned to bootstrapping, and it has turned out to be a great success in their opinion.
A lot of people genuinely believe that beginning a business enables them the freedom to pick their working hours. Entrepreneurs are proven to be one of the hardest working people on the planet. You give up any freedom you have when you open your enterprise, unless you have heaps of money saved up that you don’t need your organization to achieve success. You may have some flexibility in allotting your free time but beginning a business will certainly consume much of your leisure 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 all the suggestions listed above, you’ve some of the advice 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.