Unearthing 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. 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.
Some people believe that there are investors lining up to loan money to their startups. Financing startup companies is not their main region of focus even if venture capitalists may exist. 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 is not lost for the small business owner. There are several other choices 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 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 enables them the freedom to pick 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 starting a company will definitely consume much of your free time.
Others think that when they create the right company it sells itself, and they don’t need a company or marketing 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 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.