Clearing Up Some 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.
Some individuals believe that there are investors lining up to loan cash 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’s very difficult for startups to match this criterion. However, all is not lost for the small business owner. There are several other options that they’ll pursue to raise the requires capital. You can secure financing from the small business administration under the group 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 several entrepreneurs who have turned to bootstrapping, and it has proven to be a great success for them.
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. 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 starting a company will definitely consume much of your free 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 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 information you need as you think about as 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. Make sure that you have done exhaustive research on all that goes into establishing a startup before you invest any money in any company.
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