Unearthing 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. 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.
Many people believe that there are investors lining up to loan money to their startups. Financing startup companies is not their main region of focus even if venture capitalists may exist. 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 several other choices 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. 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.
A lot of people genuinely believe that beginning a business enables them the freedom to pick their working hours. Entrepreneurs are proven to be one of the hardest working people on the planet. You give up any freedom you have when you open your small company, unless you might have plenty of cash saved up that you don’t want your organization to be successful. You may have some flexibility in allotting your free time but starting a company will definitely consume much of your free time.
Others believe that when they establish the right business that it sells itself and they do not need a marketing or business plan to thrive. You cannot substitute a business plan and having a well thought out 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. Make sure that you have done exhaustive research on all that goes into establishing a startup before you invest any money in any company.