Contributed article in our business series. Enjoy! – Kimberly
If you have yet to launch your first business, it could be easy to believe the many myths about starting a new company. As a result, budding entrepreneurs might be deterred from launching their first business, or might launch an enterprise only to experience a few nasty surprises along the way.
As with any business decision, you must look at the facts to make a decision that’s right for you. Here are five popular myths about starting your own business.
Myth 1: You Need Investment to Start a Business
Believe it or not, but you don’t need a considerable amount of money to start a successful company. Yet it’s a common misconception that you need to seek investment to help kickstart your new venture. However, statistics prove the opposite is true. According to Fundable, only 0.91% of startups are funded by angel investors, and only 0.05% are funded by venture capital investors.
Myth 2: You Need a Business Degree
While a business degree could help you to become a successful entrepreneur, it’s not essential. Learning the ins and outs of an industry from the ground up could be the key to your success, as you’ll understand the mechanics that make a business work each day. You could even follow in the footsteps of other entrepreneurs who have earned a degree in another field, such as Google’s Larry Page or Amazon’s Jeff Bezos.
Myth 3: You Need to Be Quirky to Succeed
Contrary to popular belief, you don’t need to be filled will quirky ideas to make a company a big success. Filling a gap in a market doesn’t mean adopting a unique brand or launching gimmicks.
It means catering to market demand when other companies cannot, such as offering a cheaper price or faster delivery service. There really is no substitute for customer engagement and market analysis.
Myth 4: You Need to Spend Money to Make Money
Have you heard the saying “you need to spend money to make money”? Well, it’s a big myth. In fact, the opposite can be true. Your goal when running your business shouldn’t be to sink a considerable amount of cash into your venture.
It should be focused on reducing your overheads to increase your profitability. For example, rather than paying for an expensive graphic designer, you could start building your professional brand by using a free logo creator online.
Myth 5: It Doesn’t Count as a Real Business if You Don’t Sell Much
Many businesses start off rather small, as an aspiring entrepreneur might be selling products straight from the comfort of their home. Due to the small trickle of money entering their bank account, they might believe they do not need to register a business or worry about business tax; however, this is not the case. It doesn’t matter how small a company is, or how much money it is making, the government expects business owners to declare their income and to follow all their regulations to run a legitimate business.
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