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 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 people believe that there are investors lining up to loan money to their startups. While venture capitalists may exist, financing startup companies is not their primary area of focus. 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 the business they wish to get in should possess a great three year track record in place. It’s very challenging for startups to meet this standard. However, all is not lost for the small business owner. 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.
Many people believe that starting a business allows 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 beginning a business will certainly consume much of your leisure 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 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.