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. A lot of the things that one hears about starting a company will not be accurate-they’re merely misconceptions or urban legends which have frequently been repeated that a lot of people now believe to be true.
Many people believe that there are investors lining up to loan money to their startups. While venture capitalists may exist, financing startup companies is not their primary area of focus. 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. Nevertheless, all isn’t lost for the small business owner. There are other alternatives 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.
Many people believe that starting a business allows them the freedom to choose their working hours. Entrepreneurs are known to be one of the hardest working individuals on the planet. You give up any freedom you have when you open your enterprise, unless you have heaps of money saved up that you don’t need your organization to achieve success. 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 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 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 could get loans in the SBA or even get some investors to back up you but recall that with cash, you should 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.
Citation: web link