Demystifying Common Myths About Starting a Company
There are a few common myths that the small business owner faces when they’re going to start 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.
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 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. Nevertheless, all isn’t lost for the small business owner. There are several other choices that they can pursue to raise the much-needed capital. You can secure financing from the small business administration under the group 7 (A) programs and 504 programs. It is possible to bootstrap your company out of your personal finances, if you’re not a huge fan of loans. 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 among 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 think that when they create the right company it sells itself, and they don’t need a company or marketing plan to thrive. 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 advice 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. Ensure that you have done extensive research on all that goes into establishing a startup before you invest any money in any business.
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