Small Business Startup Myths Debunked

Blogtrepreneur: Millions of people dream of starting up their own business: of being their own boss, making it big, and having a company that that they can point to as their life’s work. But the realities of starting up a small business are sometimes overshadowed by myths which make it difficult to deal with the real challenges that arise in the first few years of operation. Here are some small business startup myths that might keep you from realizing your startup vision:
Myth: I’ll finally have time to do what I want / spend with my family / enjoy life
Reality: Anyone who has successfully started up a small business will laugh you out of the room if they hear your say this. The fact is, there are many benefits (personal and financial) to having your own business, but plenty of free time is not one of them. Granted, you do have a little more flexibility with your time. Many small business owners choose to work late at night so that they can spend time during the day with their families; but there’s still some major sacrifice…namely, sleep. Starting up a small business requires that you work 110%, without exception. Those fantasies of taking long vacations while your business grows itself? Just fantasies.
Myth: I’ll be profitable within the first year because I am hardworking / passionate / good at what I do.
Reality: It doesn’t matter how good you are at your business, how hard you work, or how much of your heart and soul you put into it. All businesses take time to get off the ground, and the majority of them are not profitable for at least the first couple years. You need to be realistic about this for a couple reasons. First of all, you can’t let yourself lose momentum or start to feel depressed just because you’re not profitable right away. Building up expectations like this can damage your business simply by virtue of chipping away at your morale. The other reason is that you’ll have to plan financially. Your budget needs to reflect five years of bootstrapping during your startup. With very few exceptions, no one hits the “big time” in six months, regardless of how talented they are.
Myth: I already know what I want to do, so I don’t need to write a business plan.
Reality: You do. A business plan is going to help you think ahead, plan for all contingencies, work with a budget, keep you focused on your mission, and help you sell your company to anyone else you need/want to have involved—lenders, employees, contractors, vendors, family, friends, etc. Writing a business plan doesn’t have to be rocket science. A simple, small business startup plan can be around 10-15 pages long and follow a simple outline. For an excellent resource on creating a business plan, I recommend the free ebook:
Outline for a Business Plan by Ernst & Young. http://www.techventures.org/resources/docs/Outline_for_a_Business_Plan.pdf

Myth: If I build it, they will come
Reality: You still need to market and advertise your business strategically. That means having a plan and a budget. It also means researching the most effective methods for marketing and advertising. There is no shortage of ways to waste money in advertising, and it can end up being a huge financial drain on a fledgling company. Do you really think 5000 key chains with your logo on them are a wise choice in your first year of business? Do you think the yellow pages are the best place to put an ad, when 80% of your business is done online? No matter how good you are, there is lots of competition and you small business has to establish a presence and reputation to go along with your talent.
Small business is one of the most exciting arenas for earning a living. There is unlimited creative potential and a chance to really make something tangible for yourself and your family. But doing so requires more than just a vision and some chutzpah. You need to be intelligent about how small business is framed in our marketplace, and what kinds of obstacles there are to overcome. You also need to be aware of the tools and support that you have at your disposal. Staying focused on these realities, and avoiding the myths that many fall prey to will only increase your chances of success and longevity in your small business.
Small Business Startup Myths [Blogtrepreneur]