Resources: 10 Mistakes that Most People Make
Demystifying Common Myths About Starting a Company
There are some common myths that the small business owner faces when they’re planning to launch 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 purpose of investing in a business is 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 challenging for startups to meet this standard. Nevertheless, all isn’t lost for the small business owner. There are several other choices that they can pursue to raise the much-needed capital. You can secure financing from the small business administration under the group 7 (A) programs and 504 programs. You can bootstrap your organization from your individual finances, if you are 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 proven to be one of the hardest working people 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 cannot substitute a business plan and having a well thought out 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 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. Make sure that you have done exhaustive research on all that goes into establishing a startup before you invest any money in any company.