Clearing Up Some Common Myths About Starting a Business
There are some common myths that the small business owner faces when they’re planning to launch 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. Financing startup companies isn’t their primary region of focus even if there are venture capitalists. 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 is very hard for startups to meet this criterion. Nevertheless, all isn’t lost for the small business owner. 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 several entrepreneurs who have turned to bootstrapping, and it has proven to be a great success for them.
A lot of people genuinely believe that beginning a business gives them the freedom to choose 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 small company, unless you might have plenty of cash saved up that you don’t want your organization to be successful. 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 replace a business plan and having a well-planned marketing plan to market your merchandise. 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 all the suggestions listed above, you’ve some of the advice 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.