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. A lot of the things that one hears about starting a company will not be accurate-they’re merely misconceptions or urban legends which have frequently been repeated that a lot of people now believe to be true.
Some individuals believe that there are investors lining up to loan cash 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 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. It is possible to bootstrap your company out of your personal finances, if you’re not a huge fan of loans. There are numerous small business owners who’ve turned to bootstrapping, and it’s turned out 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 known to be among 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 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 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. Before you invest any money in any business, ensure that you have done thorough research on all that goes into establishing a startup.