Clearing Up Some Common Myths About Starting a Business
There are some common myths that the small business owner faces when they are about to launch 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.
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 company they would like to invest in should possess an excellent three-year track record in place. It’s very difficult for startups to match this criterion. However, all is not lost for the small business owner. There are other alternatives that they can pursue to raise the much-needed capital. You can get financing from the small business administration under the class 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 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 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 could possess some flexibility in allotting your free time but starting a business will certainly use up much of your spare 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 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. Before you invest any money in any business, ensure that you have done thorough research on all that goes into establishing a startup.