Demystifying Common Myths About Starting a Company
There are a few common myths that the small business owner faces when they’re going to start their startup. Many of the things that one hears about starting a business are not true-they are just misconceptions or urban legends that have often been repeated that many people now believe to be true.
Some individuals believe that there are investors lining up to loan cash to their startups. Financing startup companies isn’t their primary region of focus even if there are venture capitalists. Their intention of investing in a company would be to make money by investing in such companies, but since most startups do not do so well in their first years, they hesitate to do so. 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 financing from the small business administration under the group 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 numerous small business owners who’ve turned to bootstrapping, and it’s turned out 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 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 beginning a business will certainly consume much of your leisure time.
Others believe that when they start the right company that it sells itself and they do not need a business or marketing strategy to prosper. You can’t replace a business plan and having a well-planned marketing plan to market your merchandise. Business plans are critical in getting investors and ensuring that you understand what it is going to take for one to be successful and you have an outline of how you want to attain your goals.
Now, with the tips listed above, you have some of the information 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.