Demystifying Common Myths About Starting a Company
There are some common myths that the small business owner faces when they are about to launch their startup. A lot of the stuff that one hears about starting a company are not accurate-they’re just urban legends or misconceptions which have frequently been repeated that many people now believe to be accurate.
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 business they want to invest in should have a great 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 other alternatives that they can pursue to raise the much-needed capital. You can secure a loan from the small business administration under the category 7 (A) programs and 504 programs. You can bootstrap your organization from your individual finances, if you are 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 enables them the freedom to pick 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 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 can’t substitute having a business plan and a well-orchestrated marketing plan to sell your product. Business plans are essential in ensuring that you understand what it’ll take for you to be successful and that you have an outline of how to achieve your goals and getting investors.
Now, with all the suggestions listed above, you’ve some of the advice 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. Ensure that you have done extensive research on all that goes into establishing a startup before you invest any money in any business.