Demystifying Common Myths About Starting a Company
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.
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 business they want to invest in should have a great three year track record in place. It’s very difficult for startups to match this criterion. However, all isn’t lost for the small business proprietor. There are several other options that they’ll pursue to raise the requires capital. You can secure financing from the small business administration under the group 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 gives them the freedom to choose their working hours. Entrepreneurs are known to be one of the hardest working individuals 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 may have some flexibility in allotting your free time but starting a company will definitely consume much of your free time.
Others believe that when they start the right company that it sells itself and they do not need a business or marketing strategy to prosper. You cannot substitute a business plan and having a well thought out marketing plan to sell your product. 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 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. Before you invest any money in any business, ensure that you have done thorough research on all that goes into establishing a startup.