Have you been considering the possibility of starting a business of your own? Are you working on a strategic plan to kick things off, get investors, customers, and market the business? If you are, today, we would like to let you know that you are in great company. Without question, some of the richest, smartest, and most innovative people to ever walk this earth have been business owners. However, as you prepare, you may come across certain half-truths and myths about business ownership. In our post today, we would like to share five such common myths about starting a business and debunk them. We will also discuss some primary factors to consider as you prepare to start your business. By the end of this post, we believe you will be further motivated and better equipped to launch your business.
Have you ever wondered why myths, though untrue, tend to become widely accepted? We believe its because they generally tend to contain some elements of truth. For example, there is a generally accepted myth about how great ideas make a great company. This however is not completely true. Great companies generally have great ideas that they can commercialize and preferably, also copyright. On the other hand, great ideas that one cannot make money from will not do your business much good.
Before we move on, here are some related posts on the subject you may also like to read:
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- Five Practical Leadership Strategies to run a Successful Business
- How to Build a Successful Business: Seven Helpful Rules
- Five Tips on How to add Value to your Business
- Seven Benefits of Branding to a Business
- Seven Things to Know Before Starting an Ecommerce Business
- Twelve Excellent Low Investment Small Business Ideas for Entrepreneurs
- Twenty-One Inspiring Quotes about Excellence
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In the next section, we will discuss five practical things to consider before you start a business.
Five Things to Consider before Starting a Business
All humans have an inherent drive to create and build something new. While Religious scholars and Atheists may argue about whether this is an expression of the “divine nature”, they both agree that the drive to create is a part of human nature. However, as you prepare to start your own business, what issues should you focus on? Considering that over 50% of all startups fail in their first five years, these issues are worth a serious look. In addition, they could help guide you as you try to identify and debunk myths about business ownership. So, here are five things to consider before starting a business:
- Research your Business Idea: Like we said earlier, the truth is that it is not enough to just have a great idea. Once you’ve settled on your business idea, do some research about it. Find out what other companies have similar ideas to yours and how well they are doing. Also try to find out what mistakes they are making and how you can differentiate your company from theirs. While such in-depth research may take time and money, it will give you a greater chance at success.
- Identify your Target Audience: In other words, who is your ideal customer? What are their specific demographics, age group, gender, location, and preferences? Understanding these specifics about your ideal customer will help tailor your products and marketing efforts toward them. This will, in turn, help generate sales and attract more customers who need your products or services. One myth about business ownership that should be debunked is that good businesses naturally attract great customers. However, this is untrue, especially if efforts are not made to identify and market towards one’s ideal customer.
- Put together a Business Plan: A business plan outlines specific steps you need to take for a successful business launch. It also contains a detailed plan to ensure continued growth of the business. Putting a business plan together ahead of time helps one determine answers to critical business decisions ahead of time. It also helps keep one accountable for one’s long-term vision, and gain insights into how that strategy is working over time.
- Estimate Start-Up Costs: One interesting myth about starting a business is that it requires substantial amounts of money. In general, it is true that business startup costs are higher than day to day business running costs. However, they are not always substantial amounts. To ensure that your business is fully equipped, it is necessary to estimate what those costs will be. Such estimates should be educated, and researched estimates, as opposed to vague calculations. This step will also help one prepare for the business launch financially.
- Find a Mentor or Advisor: As with everything, starting a business should not be done independently, or without advice. At the early stages of planning, identify people with proven experience that you can rely on. By learning from their experiences, and using their network of resources, one will have a better chance at success.
In the next section, we will take a look at five common myths about starting a business.
Five Common Myths about Starting a Business
Here are five common myths about starting a business that are either untrue or half-truths:
- Wait for the Right Time: The reality is that there will never really be a “right time” to start your business. There will always be issues competing for your attention and resources. Rather than wait for the right time, spend your time and resources preparing to launch the business. This way, you will be as prepared as you possibly can to start.
- You need a Lot of Money: While it is true that all businesses require some capital, some need it more than others. As you prepare to launch your business, you should estimate your start-up costs and factor it into your expenses. However, not all businesses need a lot of money to start. Also, one can always take the time-honored approach of starting small and scaling fast.
- Know Everything about the Business: Another common myth about starting a business is that you need to know everything before you start. However, it is unrealistic to try to know everything about any business before you start. Rather, one should focus on knowing as much as one can within the preparatory stage before business launch. As we all come to find out, making mistakes is a very important component of business success.
- You can’t Start a Business and have a Full Time Job: This is untrue, as many great businesses have been started by founders who initially worked full time. However, as the business grows, you may need to quit your job to focus on your business full time.
- Businesses need a Great Idea to Succeed: The last myth about business ownership we will discuss is that of the great idea. As we saw earlier, though advantageous, having a great idea is not a requirement to starting a great company. Researchers have shown, through extensive studies, that having core, guiding principles and a commitment to adding value are more important.
What other common myths about starting a business have you heard? Have you found them to be true or debunked in your own experience? Let us know what you think by leaving us a comment at the end of this post or on social media. As always, we would love to hear from you.
Today’s Funny Quote
As we conclude this post, we would like to leave you with a funny quote by H. L. Mencken. He was an American English Scholar and Journalist. He said:
For every complex problem, there is a solution that is simple, neat, and wrong.
Do you agree? Let us know what you think.
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To conclude, we would like to encourage you to do your research on myths about business ownership. As you’ve seen, not all of them are completely true.
Have a great week ahead and we will see you again later in the week with more inspiring posts.
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