Have you dreamed of starting your own business? You may have heard some warnings about doing so – you’ll need to do everything yourself! You need a lot of money up front to get started! You must know everything about both your business and running a business before you even think about launching! Others may have suggested that once you start it’ll be a breeze to run your business and be your own boss. Or that profits will come rolling in within months of starting. You can probably think of more in this vein of thought. These myths and misconceptions around starting a business have been here for years – and don’t look to be going away any time soon. In this blog post we’ll take a look at some of those myths and misconceptions and talk about why they aren’t true. And more importantly, why it shouldn’t deter you from taking steps to launch your business.

Myths and Misconceptions

While there are a lot of myths and misconceptions out there around starting a business, we’re just going to highlight a few of the most common ones we encounter when talking with entrepreneurs.

  • You have to do everything in the business. While it may seem like you need to do every small task related to your business, it’s important to lean on resources and outsource when possible. When your business grows to the point that you must dedicate more time to the smaller daily tasks that you don’t enjoy – say doing payroll – and less time is left to focus on your product it’s time to consider some options. Be it outsourcing to someone else or delegating to others in your business you have options. Just because you started the business doesn’t mean you need to do everything. That will lead to burn-out and could lead to you dreading the work you used to enjoy doing. You can run a one-man operation but know there will be times you’ll need support.
  • You need to know everything before you start (including a business plan). Knowing what you’d like to do helps, but you don’t need to have an exact plan. Have a general idea that can get you started and know that your course may change slightly as you fine-tune your business and your offerings. Another piece to this, is that some strongly suggest you need a fully completed business plan before you start. Why that may be your style, it doesn’t need to be a requirement to start your business. A good outline highlighting your mission, vision for the business, marketing ideas, and some kind of benchmark to determine how to measure your success is more than enough for most entrepreneurs. It doesn’t need to be fancy. If a simpler outline will meet what you need then run with that. Don’t get trapped into over analyzing if you’ve written the perfect business plan. It can work one way on paper, but once the business is running things often don’t match that perfect business plan anymore.
  • It’ll will be smooth sailing from the get-go and long term. While the idea of running a business may sound picturesque, remember that it’s still a job. Running your own business can be rewarding in many ways, but it also comes with stress and takes a large amount of your time and energy. You’ll be the source of your own paycheck now, so if the business is struggling you may be as well. Taking the leap and becoming an entrepreneur is a risk, but it’s one that can be life changing. No matter if your business is brand new or has been around for decades, it’s never a completely smooth path to success. There are hiccups both within the business and external factors (competitors, the economy, pandemics, etc.) out of your control that can affect your business.
  • Financial aspects (you need a lot of money to start & money will come flowing in quickly). There are two financial myths that get tossed around:
    • A) You need a lot of money or capital to start a business. While it is nice to have extra funds on hand when starting a business, it’s not needed. There are plenty of ways to get your business idea off the ground without a lot of capital. You can test your product and refine it without having a large inventory on hand – this allows you to make changes as suggested by customers. Starting out on a limited budget isn’t a bad thing, be smart with the funds you have to make the most of it. A business advisor or legal advisor can make suggestions on to how best to utilize the funds you do have.
    • B) Profits will come flowing in quickly once the business starts. We’ve touched on this in one of our other blogs, but the IRS assumes that new businesses won’t turn a profit for the first several years. Finding a customer base, fine-tuning your product or services, and marketing your business all takes time. Profits that do come in during the first few years will often go towards the upkeep of the business and are reinvested. Don’t let that discourage you. All businesses and entrepreneurs have been there. Take the time, work at your offerings, and know it’ll pay off. It just won’t be instantaneous.

How Did These Start?

Often misconceptions like the ones we mentioned are passed on to others as observations or even from assumptions. Seeing a small business get going off the ground seems from the outside that you need to do and know everything involved before you start. Or if you see a successful business, you may assume that as soon as they started the profits came easily. Some of these may have been true in the past – like needing to do everything yourself, but with the growth of freelancers and gig-workers you can fill short-term needs and take some things off your to-do list. And once a business has become successful, you may only hear about their growth and not the work that went into getting it going.

The misconceptions and myths have been passed along as casual warnings to those that may be considering starting a business. Some may share them meaning well, but the harm these misconceptions cause is real. It can deter aspiring entrepreneurs from even getting started. What if these obstacles those they trust mention are real? It’s not always an easy path to starting a business but knowing where to turn for help makes it a lighter load.

Resources to Turn To

Even knowing that there are misconceptions around starting a business is setting you up to be one step ahead. Knowing who you can seek more advise from is also important. Having experienced professionals in your corner is always a win – be it as a mentor figure or as fellow entrepreneurs. Seeking advice from tax professionals and legal professionals also helps ensure you can avoid any costly mistakes as you start your business. Plus, all these people can serve as a sounding board for your concerns over things you hear. They’ve likely seen and or heard it before and can help you navigate to what’s true in each statement.

Looking for more information?

We’ve been in your shoes and specialize in helping new businesses get off the ground and starting. Ready to take the leap and start your business? Or just need some guidance along the way? Reach out to our team here by sending us an exact plan or calling us at (703) 912-7862, or booking an appointment on our website. We’re excited to help bring your vision to life!